Tax Court of Canada holds
the Dutch co. (appellant) as tax resident of Canada as it was centrally managed
and controlled from Canada through the Backxes (shareholders in appellant co.
and immigrated to Canada), upholds capital gains taxability for disposition of
a partnership interest in a dairy-farm operation located in Ontario ; Notes
that in subject tax year 2009, the Backxes incorporated Dairy Farm co. in
Canada and transferred their 51% interest in the Dairy-farm partnership to the
company, rejects appellant’s contention that it was non-resident in Canada
since it was incorporated in the Netherlands and its sole director (Ms. Van
Gorp, a relative of the Backxes) was also from the Netherlands; Firstly, Court
observes that the common law test for making the determination of residential
status is the central management and control test, rules that cogent evidence
is required to displace the well-established notion that de jure directors hold
primary responsibility for the management and control of a company; Observes
that in present case, despite no experience in farming, Ms. Van Gorp had
accepted the title of director to assist the Backxes, further observes that she
neither participated in the decision to invest in the Farm Partnership nor in
the decision to dispose of the Farm Partnership in 2009 and merely implemented
decision made by the Backxes in Canada; Accepts Revenue’s stand that although
the Appellant was registered and incorporated in the Netherlands,it was the
Backxes who assumed effective and independent control of the Appellant from
Canada, and its sole director, Ms. Van Gorp, performed only
administrative/clerical tasks in the Netherlands.
Subscribe to:
Post Comments (Atom)
India Tax Due Date - February 2026.
Sr No Due Date Related to Compliance to be made 1 11.02.2026 GST ...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
The Income-tax Appellate Tribunal has recently notified the Income-tax (Appellate Tribunal) Amendment Rules, 2025, introducing important p...
-
Introduction Employee welfare is a cornerstone of corporate responsibility, and gratuity forms a critical part of the social security benefi...
-
The overall effective tax rate of a U.S. multinational corporation may have significant impact on the value of its stock. Therefore, it ...
-
A tax investigation is one of the most stressful events a company can face. It disrupts operations, consumes resources, and carries signific...
-
This is to update you about an important decision by Hon’ble Madras High Court (‘ HC ’/’ Court ’) in the case of ARS Steel and Alloy Inte...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
Mergers and Acquisitions (M&A) are no longer confined to large conglomerates. Mid-market deals, family-owned businesses, PE-backed exits...
-
Clarifications from the GST Council The GST Council has recommended the following clarifications on ISD and cross charge:
-
In a ruling that provides crucial clarity on the taxation of foreign enterprises in India, the Delhi bench of the Income Tax Appellate Tri...
No comments:
Post a Comment