Taxpayer's Legal Relationship : Tax tips

 

Taxpayer's legal relationships

The Supreme Court of Canada has confirmed that it has never held that the economic realities of a situation can be used to recharacterize a taxpayer's bona fide relationships. It has held that, absent a specific provision of the Income Tax Act to the contrary or a finding that they are a sham, the taxpayer's legal relationships must be respected in income tax cases.