Who We Are

Who We Are

Tax disputes can be costly and time consuming, resulting in inefficiencies that can affect the success of your business. Whether resident or non-resident, individual or corporate, taxpayers rely on experienced legal counsel to represent them at every level of the tax audit, assessment, objection and appeal process.

At Dentons Canada LLP, our Tax Litigation and Dispute Resolution Group brings its expertise and experience to contentious tax matters affecting public, private, entrepreneurial and not-for-profit organizations across the country. Dentons is a global firm driven to provide you with the competitive edge in an increasingly complex and interconnected marketplace. We were formed by the March 2013 combination of international law firm Salans LLP, Canadian law firm Fraser Milner Casgrain LLP (FMC) and international law firm SNR Denton.

Our Editors

Angelo Gentile

Phone: 416 862 3438 | E-mail: angelo.gentile@dentons.com

Angelo is an associate in Dentons' Tax Group. His practice focuses on tax litigation and commodity taxation, including goods and services tax and harmonized sales tax (GST/HST), provincial sales tax (PST), land transfer tax, employer health tax and gasoline tax. Angelo also has experience in resolving disputes arising under the Income Tax Act, the Excise Tax Act, the Customs Act, the Retail Sales Tax Act, the Canada Pension Plan and the Employment Insurance Act. Angelo has appeared before the Tax Court of Canada, the Federal Court of Appeal, and the Federal Court and has assisted clients in successfully resolving a wide range of tax disputes. Angelo also represents clients in making voluntary disclosures with the Canada Revenue Agency and the Ontario Ministry of Finance/Revenue.

David Spiro

Phone: 416 863 4761 | E-mail: david.spiro@dentons.com

David acts for domestic and international business enterprises on the resolution of income tax controversies and commodity tax disputes. He advises clients on the management of Canadian tax audits and pursues objections and appeals with federal and provincial tax authorities across a wide range of issues. David has appeared frequently before the Tax Court of Canada and the Federal Court of Appeal and acted as counsel on the first GST appeal heard by the Supreme Court of Canada. He also assists taxpayers in preparing and filing large voluntary disclosure applications and applications for taxpayer relief and has settled significant disputes with the tax authorities on a favourable basis at the pre-assessment, objection and trial stage.

Timothy Fitzsimmons

Phone: 416 361 2339 | E-mail: timothy.fitzsimmons@dentons.com

Timothy is a partner in the firm’s Toronto office. His practice focuses on domestic and international corporate tax planning and litigation. Timothy works with clients across a variety of industries including natural resources, transportation, health care, financial services, communications, hi-tech, and manufacturing. He has represented clients before the Ontario Superior Court of Justice, the Tax Court, the Federal Court, and the Federal Court of Appeal. Timothy writes and speaks frequently on tax issues, and his work has been published in the Canadian Tax Journal, Tax Topics, Tax Litigation Journal, CCH International Tax, Tax Notes International, and CA Magazine. Timothy clerked at the Tax Court of Canada during 2006-07.

Business Structures | Tax Planning

Success depends on effective preparation — from initial strategy and planning, to preparation of tax documentation and obtaining advance tax rulings, to mitigating litigation. The Business Structures & Tax Planning Group at Dentons is there to help ensure your business ventures are structured and implemented to maximize tax efficiencies and minimize risk.

Charities | Not-for-profits Tax

From registration to corporate governance, experienced legal counsel play a vital role in establishing and sustaining a successful charitable or not-for-profit organization. The national Charities and Not-for-Profit Tax Group at Dentons provides directors, trustees, governors and management with timely and innovative legal advice, allowing them to best meet their organization’s mission and objectives.

Commodity | Sales Tax

Companies involved in the supply or acquisition of goods and services [in Canada], as well as companies sourcing goods and services in Canada need a law firm that can get them from start to finish. Canadian and non-resident businesses count on the Sales and Commodity Tax Group at Dentons to take them from the initial planning stages, through documentation, registration and compliance.

International Tax

Navigating the complexity of multi-jurisdiction taxation requires superior tax planning, structuring and dispute resolution. Canadian businesses with international ventures, foreign companies trading into Canada and North American cross-border transactions all rely on Dentons for the best in international tax advice. We provide your roadmap to international business, in Canada and abroad.

Resource Taxation

No legal advisors are better suited to address your Canadian resource taxation needs than the authors and editors of Canadian Resource Taxation, the definitive publication on the subject. Using this unparalleled expertise, the National Resources Tax Group at Dentons helps Canada’s top resource companies, investors and lenders plan and structure their projects and transactions for tax efficiency and maximum returns.

Wealth Management

With considerable wealth comes great responsibility, great need for privacy and security, and great need for trusted advice. Our Wealth Management Group has significant expertise in asset protection, tax planning, wills, charitable giving, estate administration and powers of attorney. But the personal nature of the work demands much more: our clients need a seasoned advisor dedicated to the security of their finances now, and well into the future.

Recent Matters

Global Equity Fund Ltd. v. The Queen, 2011 TCC 507

On October 28, 2011, the Tax Court of Canada ruled that the Minister of National Revenue (the “Minister”) had not met the onus of establishing abusive tax avoidance under subsection 245(4) of the Income Tax Act (the “Act”) in an appeal brought by Global Equity Fund Ltd. (“Global”) of the application of the General Anti-Avoidance Rule (the “GAAR”) by the Minister to disallow the deduction of a $5,600,250 business loss incurred on the sale of shares in a private corporation.

Relying on the Supreme Court of Canada decision in Canada Trustco Mortgage Co. v. The Queen (2005 SCC 54), Justice Woods held that the provisions in the Act relied upon by Global to produce the losses had not been misused and she was also unable to discern a general policy from these provisions that restricted business losses in the manner suggested by the Crown. The Tax Court rejected the Crown’s argument that there was a general restriction against the deduction of artificially-created business losses.

The Federal Court of Appeal overturned the Tax Court’s findings. The Federal Court of Appeal allowed the Crown to advance a new rationale for the provisions relied upon by the taxpayer to claim the deduction (sections 3, 4, 9 and 111 of the Act), regardless of that rationale not being pled by the Crown and not being advanced before the Tax Court of Canada. The Federal Court of Appeal rejected the new Crown’s suggested rationale of the relevant provisions and advanced a different rationale to the relied upon provisions not referenced in any submissions placed before the Court or the Tax Court. The Court held that the rationale of section 9 is that “if a business loss is to be used for taxation purposes under those provisions, there must, at least, be an air of economic or business reality associated with that loss.” [para. 63 of Reasons for Judgment]

Integrated Automotive Group v. The Minister of National Revenue, 2011 TCC 468

On October 5, 2011, the Tax Court of Canada ruled in favour of Integrated Automotive Group (“Integrated Automotive”) in appeals from decisions made under the Canada Pension Plan and Employment Insurance Act for the period January 5, 2006 to September 6, 2007 (the “Period”) on the basis that a worker was not in pensionable or insurable employment with Integrated Automotive during the Period. The court held that the worker provided services to Integrated Automotive under a contract for services, and, further that both parties had a mutual intention that the relationship was one of a contract for service.

Pink Elephant Inc. v. The Queen, 2011 TCC 395

On August 31, 2011, the Tax Court of Canada ruled in favour of Pink Elephant Inc. (“Pink Elephant”) allowing the company to deduct 100% of its catering expenses for the 2006 and 2007 tax years. Traditionally, the Canada Revenue Agency allows only a 50% deduction of the costs of meals and entertainment when incurred as a business expense. In deducting 100% of its food costs, Pink Elephant relied on an exception to the general rule that allows a full deduction for amounts paid.

Bozzer v. The Queen, 2011 FCA 186

On June 2, 2011, the Federal Court of Appeal ruled that taxpayers can apply to have accrued interest under the Income Tax Act cancelled, as long as the interest has accrued within ten years of the taxpayer’s application. This decision overturns an earlier decision of the Federal Court and the longstanding policy position of the Canada Revenue Agency. The Federal Court of Appeal concluded that the Minister of National Revenue was wrong in refusing to consider applications for interest relief where the underlying tax debt arose more than ten years before the application.

The Queen v. Donato, 2010 FCA 312

In a unanimous decision, the Federal Court of Appeal dismissed the Crown’s appeal of a costs order made by a Judge of the Tax Court of Canada awarding lump sum costs of $40,000 to Mr. Donato (party and party costs, calculated in accordance with the tariff, would have amounted to just over $10,000). The Federal Court of Appeal held that the Tax Court Judge was entitled to make the award as the result obtained by Mr. Donato at trial was at least as favourable to him as the offer of settlement which he made and which the Crown rejected.

Heron Bay Investments Ltd. v. The Queen, 2010 FCA 203.

On July 29, 2010, the Federal Court of Appeal issued judgment in Heron Bay Investments Ltd. v. The Queen, 2010 FCA 203, allowing Heron Bay’s appeal with costs, setting aside the judgment of the Tax Court and referring the matter back to the Tax Court for retrial by a different judge. The issue before the Tax Court was whether Heron Bay was entitled to an allowance for a doubtful debt under the Income Tax Act (Canada) in respect of a $3.77 million loan.

Collins v. The Queen, 2010 FCA 12

The Federal Court of Appeal held that accrued but unpaid interest on a mortgage is deductible regardless of the fact that the payment was not to be made in the year.

Jehad Haymour and Sebastian Elawny acted for Mr. and Mrs. Collins at the Federal Court of Appeal.

Donato v. The Queen, 2009 TCC 590 and 2010 TCC 16.

In Donato v. The Queen, 2009 TCC 590, the issue was whether the taxpayer realized taxable capital gains when he donated editorial cartoon works to charities. In her decision on costs, 2010 TCC 16, the Tax Court Judge characterized the outcome of the case as “a substantial win” for the taxpayer and awarded him $40,000 in costs. William Innes and Douglas Stewart acted for Mr. Donato at the Tax Court of Canada.