Our Tax Litigation and Tax Controversy team has made several successful appearances at all levels of court in Canada in recent years, including:

Recent Decisions

• The King v. Preston, 2023 FCA 178: Appeal by the Crown before the Federal Court of Appeal with respect to decision by the Tax Court of Canada to strike a portion of the Crown’s pleadings.
• Canada v. Microbjo Properties Inc., 2023 FCA 157: Appeal by the Crown before the Federal Court of Appeal with respect to the application of s.160 of the Income Tax Act and the GAAR. Success was divided: the Court found in favour of the Crown in relation to section 160 but in favour of the taxpayer in relation to the GAAR, such that the Crown could only recover 46% of the amounts sought.
• Prospera Credit Union v. The King, 2023 TCC 65: Successful appeal before the Tax Court of Canada of reassessments denying the taxpayer’s claim that its services were “financial services” exempt from GST.
• Attorney General of Canada v. Collins Family Trust et al, 2022 SCC 26: Precedent-setting tax case heard by the Supreme Court of Canada, discussing the availability of the equitable remedy of rescission in tax-related cases. One of only a handful of tax cases heard by the Supreme Court of Canada.
• Belmont Nominee Ltd. v. Vancouver (City), 2021 BCSC 2492: Successful judicial review application of the City of Vancouver’s “Vacancy Tax”, which has been a significant source of government revenues as well as major political discussion point in recent years. The decision was one of two Vacancy Tax-related decisions (both of which have been argued successfully by Dentons) rendered to date.
• Preston Family Trust v. The Queen, 2021 TCC 79: Successful motion before the Tax Court of Canada seeking to strike a portion of the Crown’s pleadings.
• Damis Properties Inc. et al v. The Queen, 2021 TCC 44: Tax Court of Canada granted the appellants over $450,000 in legal fees and over $170,000 in disbursements pursuant to the successful appeal of an assessment under s. 160(1) of the Income Tax Act and the GAAR.
• Damis Properties Inc. et al v. The Queen, 2021 TCC 24: Significant tax-avoidance case involving the GAAR, which led directly to Parliament’s introduction of new anti-avoidance amendments and legislation.
• Canada v. Villa Ste-Rose Inc., 2021 FCA 35: Successfully representing Villa Ste-Rose Inc. in a landmark sales tax case before the Tax Court of Canada (Appellant) and the Federal Court of Appeal (Respondent) in relation to the interpretation of the legislative provisions relating to the calculation of interest and penalties applicable to GST assessments. Appeal by Villa Ste-Rose Inc. allowed by the Tax Court of Canada and upheld by the Federal Court of Appeal.
• Ifi v. Attorney General of Canada, 2020 FC 1150: Taxpayer relief request for excess TFSA contribution.
• Zomaron Inc. v. The Queen, 2020 TCC 35: Successful appeal before the Tax Court of Canada of reassessments denying the taxpayer’s claim that its payment processing services were “financial services” exempt from GST.
• Smith v. The Queen, 2019 FCA 173: Taxation of employment benefits.
• Richard Glatt v. The Minister of National Revenue, 2019 FC 738: Successful application for judicial review before the Federal Court of Canada to reverse the Minister of National Revenue’s decision to deny interest to a taxpayer in respect of amounts paid on a withdrawn preparer penalty assessed under s.163.2 of the Income Tax Act.
• Rocco Gagliese Productions Inc. v. The Queen, 2018 TCC 136: Successful appeal before the Tax Court of Canada in relation to a claim for the small business deduction, a decision affecting thousands of artists and composers in the music industry paid by SOCAN (The Society of Composers, Authors and Music Publishers of Canada).
• Rio Tinto Alcan Inc. v. The Queen, 2017 TCC 67: Representing Rio Tinto Alcan Inc. before the Tax Court of Canada for reassessments denying $18 million dollars of SR&ED credits.
• Rio Tinto Alcan Inc. v. The Queen, 2016 TCC 258: Tax Court of Canada granted Rio Tinto Alcan Inc. over $550,000 in lawyers costs pursuant to an appeal allowed by the court regarding the deduction of transaction fees.
• Rio Tinto Alcan Inc. v. The Queen, 2016 TCC 172: Tax Court of Canada allowed the deduction of $96 million of transaction fees in a takeover bid. Confirmed by the Federal Court of Appeal (2018 FCA 124) and Supreme Court of Canada dismissed Crown’s leave to appeal.
• Metro-Goldwyn-Mayer Studios Inc. v. The Queen: Representing MGM before the Tax Court of Canada for reassessments of withholding tax of $13 million dollars.
• Metro-Goldwyn-Mayer Studios Inc. v. The Queen: Representing MGM in a transfer pricing issue before the Tax Court of Canada for reassessments denying approximately $92 million dollars of capital cost allowance deductions.
• Teledyne DALSA Inc. v. The Queen: Representing an international leader in high performance digital imaging and semiconductors before the Tax Court of Canada with respect to $36 million dollars of capital gain assessed by the CRA.

Confidential Clients

• A private gourmet food producer in a successful urgent rectification application before the Ontario Superior Court of Justice (Commercial List) to treat unfiled Articles of Amendment as having been filed on a retroactive basis.
• A major accounting firm in its defence at the Ontario Superior Court of a claim for negligence in connection with tax advice provided in the structuring of a hybrid share/asset purchase.
• A leading Canadian charitable foundation in its dispute of a penalty assessed under s.188.1 of the Income Tax Act.
• An international industrial design and manufacturer in a transfer pricing objection.
• An international precision machining company in an appeal to the Tax Court of Canada on a transfer pricing reassessment.
• A number of donors in their appeals to the Tax Court of Canada on the application of the loanback rules under s.118.1(16) of the Income Tax Act.
• A leading insurance company in an appeal to the Ontario Superior Court in relation to a reassessment of insurance premiums taxes.
• An ultra-high net worth individual in an appeal to the Tax Court of Canada involving the reassessment of significant shareholder benefits for the value of luxury art rentals.
• A luxury jewelry, watches, and artwork dealer in a GST/HST reassessment.
• An entertainment company in an appeal to the Tax Court of Canada on transfer pricing reassessments.
• An international leader in digital imaging in a Notice of Objection concerning a transfer pricing reassessment involving a hybrid debt arrangement.
• A national law firm in its application for rectification at the Ontario Superior Court.
• A leading cinema operator in an appeal to the Tax Court of Canada on a reassessment to deny capital gain treatment.