Now in its fifth edition, this work provides an overview of the foundations of tax law and the critical cases which have shaped each component of the tax regime, uniquely combining the best features of both a textbook and casebook. Offering more depth of analysis and scope of coverage than other income tax law casebooks, it contains the authors' analysis of the law, yet unlike other textbooks, it includes the text of judicial decisions, enabling readers to critically and effectively assess the law. Cited by the Supreme Court of Canada, this book's expert commentary, detailed explanatory notes and extensive case excerpts, will be of interest to tax lawyers, legal academics and law students.

Book Features

• Key extracts from leading cases offer the most authoritative precedents for each aspect of income tax law practice
• Provides concise explanations and analyses of critical sections of the Income Tax Act
• Introductory chapters lay the foundation for the examination of statutory provisions and judicial decisions; the remaining chapters follow the structure of the Income Tax Act
• Provides a useful bridge between the highly technical statutory interpretation material that practitioners use every day, and the primary sources of law (i.e. statutes and cases)

What's New in This Edition?

• Judicial developments up to June 2015, including:
  • Rate brackets
  • The conversion of the children's fitness tax credit from a non-refundable credit
  • The federal government's proposed rules on income-splitting
  • Proposed increases to limits on Tax Free Savings Accounts (TFSAs)
  • Statutory rules for non-competition payments
  • New case excerpts on employment benefits, the ordinary meaning of a business, the principal residence exemption and moving expenses
• Notes on recent cases, including:
  • The sham doctrine
  • The concept of a personal services business
  • The computation of employment income
  • The tax treatment of income and losses from Ponzi schemes and other fraudulent activities
  • The deduction of fines and penalties
  • The deduction of interest expenses
  • The characterization of capital expenses
  • Tax consequences associated with changes in the use of property
  • The characterization of gains and losses from securities and foreign exchange transactions
  • The taxation of prizes
• New chapters on the computation of taxable income and tax payable