Tax Topics - February 16, 2012

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In This Issue:

Settlment Offers: CIBC World Markets Inc. v. Her Majesty The Queen

Requirement to Provide SIN/BN on T5 - 3

Volunteer Rewards Program - 3

New Smart Chart Added - 4

Recent Cases - 4

Excerpt from Settlement Offers'

On January 10, 2012, the Federal Court of Appeal (“FCA”) released its decision in CIBC

World Markets Inc. v. Her Majesty the Queen (2012 GTC 1011, 2012 FCA 3). This unanimous judgment reduces the effectiveness of settlement offers under sections 403 of  the Federal Courts Rules and 147 of the Tax Court of Canada Rules (General Procedure). In this matter, prior to the proceedings in the Tax Court of Canada (“TCC”), CIBC World Markets Inc. (“CIBC”) sent an offer of settlement to the Minister. Under the proposed settlement, the Minister would issue a reassessment allowing CIBC to receive 90% of the  input tax credits (“ITC”) it claimed on its GST return. The offer had no expiry date and was available to be accepted until the judgment of the FCA was rendered. CIBC was unsuccessful at the TCC in arguing that it was entitled to make a second claim for ITCs  using a different allocation methodology in respect of the same tax years to obtain ITCs at a higher level than those originally claimed. The TCC held that CIBC was not entitled to make such claims and CIBC then appealed to the FCA.

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