On May 9, the Honourable Gail Shea, Minister of National Revenue, released a statement that the US, Australia, and the UK announced they are in possession of tax-related information involving numerous trusts and companies holding assets on behalf of residents in jurisdictions around the world.
In the May 8 issue of KBR, the article “Understanding Synthetic Dispositions” explained the concepts of synthetic dispositions and their tax implications. In this issue, we provide an example involving the forward sale of securities.
Taxpayers and their advisors must prepare documentation and filings that follow both the laws created by the Department of Finance and the interpretation of the law by CRA. This has been proven again and again in the Courts. That’s why taxpayers and their advisors must understand the rules and how to comply with them, not just during tax filing season, but in its aftermath, too.
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