Soft-Moc Inc. c. Canada (National Revenue), 2013 FC 291 (2013)

Cour Fédérale

Linked as:

Extract


Soft-Moc Inc. c. Canada (National Revenue), 2013 FC 291 (2013)

Federal Court - Soft-Moc Inc. v. Canada (National Revenue)

Source: http://decisions.fct-cf.gc.ca/en/2013/2013fc291/2013fc291.html

Federal Court

Cour fédérale

Date: 20130320

Docket: T-502-12

Citation: 2013 FC 291

Ottawa , Ontario , March 20, 2013

PRESENT: The Honourable Mr. Justice Russell

BETWEEN:

SOFT-MOC INC.

Applicant

and

THE MINISTER OF NATIONAL REVENUE AS REPRESENTED BY THE ATTORNEY GENERAL OF CANADA

Respondent

REASONS FOR JUDGMENT AND JUDGMENT

INTRODUCTION

[1] This is an application for judicial review pursuant to subsection 18.1 of the Federal Courts Act , RSC, 1985, F-7, and subsections 231.6(4) and 231.6(5) of the Income Tax Act , RSC, 1985, c 1 (5 th Supp) (ITA). The Applicant seeks review in respect of a decision (Decision) of the Assistant Director, Toronto East Tax Services Office, Canada Revenue Agency (Director), dated 21 December 2011, to issue a Foreign-Based Information Requirement (Requirement) requiring the Applicant to obtain and provide to the Canada Revenue Agency (CRA) certain foreign-based information and documents.

BACKGROUND

[2] The Applicant is a Canadian resident corporation that sells footwear. Mr. Bryan Bardocz is the President of the Applicant and owns 10% of the Applicant’s common shares. Mr. Bert Krista owns, directly or indirectly, 90% of the Applicant’s common shares. In 2004, Mr. Krista took up residence in the Bahamas and incorporated the other four corporations involved in this application: ITPC Inc. (ITPC), Manser Inc. (Manser), MWF Inc. (MWF) and SoftPOS Inc. (SoftPOS). Mr. Krista wholly owns these four corporations.

[3] During the course of its operations, the Applicant received services from ITPC, Manser, MWF and SoftPOS, all of whom have their centers of operation in Nassau, Bahamas. During 2005 and 2006, the Applicant paid substantial amounts to these four corporations for a variety of services, such as merchandising services, information technology consulting services, business development services and software licensing fees.

[4] In April 2009, the Minister undertook an audit of the Applicant (Transfer Pricing Audit or TPA). Part of the TPA included a review of the payments made by the Applicant to ITPC, Manser, MWF and SoftPOS as consideration for the services provided by them to the Applicant. The TPA also aimed to determine whether the services said to be provided by the four companies were provided in the Bahamas or in Canada and, if the services were provided in the Bahamas, how they were provided.

[5] The Minister also sought to determine whether the consideration paid by the Applicant to the four companies benefited the Applicant. This determination was to assist in ascert...

See the full content of this document


ver las páginas en versión mobile | web

ver las páginas en versión mobile | web

© Copyright 2014, vLex. All Rights Reserved.

Contents in vLex Canada

Explore vLex

For Professionals

For Partners

Company