Liability for the tax on SIFT partnerships : a rejoinder

Resource Information

The work Liability for the tax on SIFT partnerships : a rejoinder represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Liability for the tax on SIFT partnerships : a rejoinder

Creator

• Campbell, C

Subject

• partnership
• assessment
• pass-through entity
• tax liability
• self-assessment
• penalties

Language

eng

Summary

In a recent article in the Canadian Tax Journal, Brian Bloom and Brandon Wiener argued that the language of subsection 197(2) of the Income Tax Act, which imposes part IX.1 tax on specified investment flowthrough partnerships (SIFTs), is deficient because it uses the words "liable to" rather than the usual charging language, "a tax . . . shall be paid." This article suggests that their argument that "liable to" means only a potential risk of tax (which will be imposed and charged only on further assessing action by the minister) is not consistent with the general concept of liability in the Act and the jurisprudence. Liability for tax, it is argued, means a real, if inchoate, obligation to pay tax that is crystallized and becomes due on assessment. This is the result that flows from the jurisprudence, and it is consistent with the provisions of the Act imposing penalties. The context and the purpose of subsection 197(2) reinforce this conclusion

Citation source

In: Canadian tax journal = Revue fiscale canadienne. - Toronto. - Vol. 59 (2011),

Geographic coverage

North America

Language note

English