May 23, 2023

Counter Partners' Update Chapter on Corporate Residence Disputes & Strategies

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We’re delighted to announce our newly updated chapter on Corporate Residence & Tax Disputes in Canada (2023), published by Thomson Reuters, is now available.

The legal landscape, case law, and Canada Revenue Agency’s positions shift continually. Expecting evolution and uncertainty is part and parcel of this dynamic field. This comprehensive guide sheds light on the evolving world of corporate tax residence disputes.

I understand the issues CEOs and CFOs face when navigating an emerging or existing corporate residence dispute. We’re always searching for ways to give these leaders the clarity they need.

I hope this chapter will increase our clients’ and their advisors’ knowledge. I hope this work adds value.

– Peter Aprile, Partner, Tax Litigation

In the updated chapter, you will find:

Exploration of how COVID-19 changes the landscape and weighting.
Insights about where the central management and control test might head next.
Helpful strategies and common pitfalls that taxpayers encounter in corporate residence disputes.

We invite you to read this updated chapter and learn more about corporate residence and tax disputes in Canada.

Insights

The Tax Court confirmed that foreign tax interest is not deductible. BMO’s disciplined tax dispute strategy — early framing, agreed facts, and Rule 58 — contained the loss and shaped the trajectory.

Background Pattern 2 with Tax Strategy Insights text - The Three Critical Infection Points in CRA Challenges, resolving high-stakes tax disputes for mature businesses and affluent families.

CRA challenges are often described procedurally, but the decisive moments are structural shifts: when CRA sets out its likely position, when it formalizes that position, and when independent oversight becomes available. Each inflection point alters probabilities and options.

Background Pattern 2 with Tax Strategy Insights text - The Standards That Enable Settlement in Tax Disputes, strategic tax dispute navigation with deep legal expertise by Counter Tax Litigators LLP.

Tax disputes are often treated as binary. In practice, principled floors and defensible standards enable earlier, credible settlements.

Background Pattern 2 with Caselaw Insights text - Mutual Fund Trust Disputes: When Form Without Execution Collapses | Counter Tax Litigators LLP trusted representation for complex, high-stakes tax disputes.

Grenon v. Canada shows how mutual fund trust status can fail when execution doesn’t match form. Courts scrutinize RRSP structures that promise tax benefits without real distribution.

Background Pattern 2 with Caselaw Insights text - Surplus Cash and the Active Asset Test: Lessons from Ehresman, protect the value you’ve created with premier tax litigators, Counter Tax Litigators LLP.

Ehresman shows how surplus cash can cost LCGE access when reserves and records are missing. Courts often treat silence as evidence. Outcomes turn on how those gaps are addressed.

Background Pattern 2 with Startegy Insights text - Strategic Deferral of Departure Tax: Security, Liquidity, and Control, strategic tax dispute navigation with deep legal expertise by Counter Tax Litigators LLP.

Departure tax deferral allows taxpayers to post security. The taxpayer's deferral choices significantly impact liquidity, valuation disputes, and control in cross-border transitions.

Explore more insights >

Tax partner from Price Waterhouse Coopers commending Peter Aprile and the Counter Tax Litigators team for their hands-on, focused, and diligent approach to tax law.

What Accountants Say

Peter Aprile is a very hands on and practical tax lawyer who is very focused and diligent. He is a pleasure to work with.

- Susan Farina, Tax Partner, Price Waterhouse Coopers

Senior VP client with an accounting and finance background praising Counter Tax Litigators for their expertise, dedication, and businesslike approach to tax dispute litigation.

What Clients Say

I’m a Senior VP with an accounting and finance background. I’ve worked with lawyers and large law firms. I was referred to Counter to fix a tax dispute. It is very rare to encounter lawyers that combine expertise, dedication, and a businesslike approach to litigation. I have no hesitation in recommending Counter.

- David Cuddy, Senior Vice-President, Finance & Business Operations, CFL

Accountant representing Fuller Landau LLP praising Counter Tax Litigators for superior communication in resolving client tax disputes.

What Accountants Say

Counter Tax Litigators has worked with Fuller Landau to resolve several of our clients’ tax disputes. Counter delivers superior communication.

- Laura Couvrette, CPA, CA, Fuller Landau LLP

Retired CEO client recommending Peter Aprile and the Counter Tax Litigators team for their competence, honesty, and exceptional handling of legal matters.

What Clients Say

I spent a good part of my career dealing with attorneys on innumerable matters, and found Peter to be extremely competent, open-minded and exceptionally honest. I would not hesitate to use Peter again, and highly recommend the team at Counter Tax Litigators.

- Mark Ram, Retired CEO

Successful business leader praising Counter Tax Litigators’ team for their professional, efficient representation, leading to a highly satisfactory decision.

What Clients Say

Counter’s representation on our behalf was well informed, professional and efficient, which ultimately resulted in a highly satisfactory decision in all aspects.

- Klaus W. Reif, President, Reif Estate Winery

Business leader praising the Counter Tax Litigators team for going above and beyond in handling a significant tax dispute.

What Clients Say

I was amazed with the results. They went above and beyond, and I would recommend Counter to any person or business with a significant tax dispute.

- Brian Grott, Northland Screen Corp

Framework Graphic 1 – representing Counter Tax Litigators' integrated approach to client service, combining advanced systems and deep legal expertise to resolve high-stakes tax disputes.

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Counter Partners' Update Chapter on Corporate Residence Disputes & Strategies

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Related Insights

Counter Partners' Update Chapter on Corporate Residence Disputes & Strategies

Insights

Foreign Tax Interest Denied, Tax Court Loss Contained — Bank of Montreal v. HMK

The Three Critical Inflection Points in CRA Challenges

The Standards That Enable Settlement in Tax Disputes

Mutual Fund Trust Disputes: When Form Without Execution Collapses

Surplus Cash and the Active Asset Test: Lessons from Ehresman

Strategic Deferral of Departure Tax: Security, Liquidity, and Control

How can we help you?

Recognition

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Stay current with our latest insights.