Tax Page

Today, we say goodbye (for now) to our 2025 articling student, Osinachi Obi-Njoku, on his final day at the firm.

From day one, Osinachi brought energy, dedication, and thoughtful perspective to our team.

Reflecting on his experience at Rotfleisch & Samulovitch P.C., Osinachi shared:

“My articling experience at Taxpage has been excellent and highly rewarding. I was exposed to a wide range of tax matters, from GST/HST issues and CRA disputes to VDPs, tax planning, and litigation.

The highlight was working on a matter before the Tax Court of Canada; it taught me how critical the CRA stage is in shaping the strength of a court case.”

When asked what advice he would give incoming students, he noted:

“You must be willing to put in the work. Tax law is one of the most challenging areas of law, but Taxpage has a unique way of teaching an incredible amount within a short period.”

We thank Osinachi for his outstanding work and dedication over the past year and wish him every success as he begins his legal career.

Taxpage

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How We Resolved a Multi-Million Dollar Cross-Border Tax Dispute With the CRA

What began as a routine CRA offshore audit in 2019 evolved into a seven-year cross-border tax dispute involving international information requests, Swiss banking issues, and complex offshore reporting considerations.

Our long-standing clients were initially under review for the 2010–2017 taxation years. At first, the audit proceeded through relatively standard channels. However, in 2021, the scope of the review expanded significantly beyond the original audit period.

During the process, previously closed offshore accounts and a Swiss trust connected to a non-resident family member were disclosed. Importantly, our position was that there was no Canadian tax exposure associated with those structures.

The matter escalated further when the CRA sought information from Swiss authorities based largely on signing authority and power of attorney concerns, despite the absence of beneficial ownership — a key legal distinction under Canadian tax law.

Given the cross-border implications, our team moved quickly and strategically.

We formally notified the Swiss bank that our clients held no beneficial ownership interest in the accounts in question and that no direct CRA request had been issued to them personally. At the same time, we coordinated with a leading Swiss tax law firm, advanced our legal position through the appropriate channels, and prepared for potential court proceedings in Canada if necessary.

Ultimately, the Swiss authorities declined the CRA’s request.

Although the international component was resolved, the domestic audit continued for several more years. Throughout the process, we maintained structured communication with the CRA, ensured ongoing compliance, and carefully managed the evolving audit strategy.

The Result:

After seven years, the CRA issued its final completion letter confirming:

• No reassessments

• No penalties

• No further action

Our clients were fully cleared.



Key Takeaways:

• Cross-border tax audits can evolve significantly over time

• International information-sharing requests must still comply with applicable legal standards and reporting requirements

• Proper documentation and early strategic representation matter enormously in offshore audits and disputes

• Taxpayers should maintain complete records for extended periods, particularly where international structures or assets are involved

Once a CRA audit begins, every communication and procedural step can carry significant consequences. Complex cross-border tax disputes should never be approached without experienced legal guidance.

Taxpage

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We are pleased to welcome our 2026 summer students: Jason Jin, Jessica Gan, and Maya Caplan.

Jason recently completed his second year at Osgoode Hall Law School, where his growing interest in tax law was further shaped through research on the taxation of Decentralized Autonomous Organizations (DAOs).

Jessica is a Juris Doctor candidate at Osgoode Hall Law School with a focus on tax law, including the Income Tax Act, GST/HST, and tax treaties. She has also contributed to leading academic tax research initiatives and conferences.

Maya is pursuing her J.D. at Osgoode Hall Law School and continues to strengthen her advocacy and analytical skills through academic, practical, and moot court experience.

We are proud to have them join the team and look forward to supporting their professional development over the coming months.

Welcome to the team, and best wishes for a rewarding summer ahead.

From all of us at Rotfleisch & Samulovitch P.C.

Taxpage

All the tax help you need.

Happy Victoria Day from all of us at Rotfleisch & Samulovitch P.C.

We hope today brings meaningful time with family and friends, along with an opportunity to relax and enjoy the season ahead.

Taxpage

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Meet Danielle Kuechler, Rotfleisch & Samulovitch P.C. Administrator

Say hello to Danielle Kuechler, our administrator whose organization, adaptability, and steady support help keep the firm running smoothly behind the scenes.

Since joining the firm in 2021, Danielle has grown from administrative assistant to administrator, consistently bringing patience, efficiency, and professionalism to every aspect of her role.

In one memorable instance, when conventional communication channels failed to reconnect with a former client regarding a retainer refund, Danielle took the extra step to track down updated contact information and successfully reconnect with the client within a week.

Thank you, Danielle, for your continued dedication and invaluable support to both the team and our clients.

Fun fact: Danielle grew up on a small horse farm up north and rode horses for nearly 10 years.

To learn more about Danielle: See the comment

Taxpage

All the tax help you need.

RESP Withdrawals: What Canadian Families Must Know to Avoid Extra Taxes and Penalties

A Registered Education Savings Plan (RESP) can be one of the most effective ways to save for a child’s post-secondary education. However, many families do not realize that certain RESP withdrawals can trigger taxes, grant repayments, or costly penalties if handled improperly.

Here’s what taxpayers should know:

1. Contributions vs. Educational Assistance Payments (EAPs)

RESP contribution withdrawals (Post-Secondary Education or “PSE” withdrawals) are generally tax-free because contributions were made using after-tax dollars.

Educational Assistance Payments (“EAPs”), however, are taxable in the student beneficiary’s hands and may include:

• Government grants such as the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB)

• Investment income earned within the RESP

• Capital gains generated inside the plan

2. Early Withdrawal Limits Matter

During the first 13 weeks of eligible post-secondary enrollment:

• Full-time students are generally limited to $8,000 in EAP withdrawals

• Part-time students are generally limited to $4,000

These limits are generally removed afterward unless studies are interrupted for 12 months or longer.

3. If RESP Funds Remain Unused

Families may still have several planning options available if RESP funds are not fully used for educational purposes:

• Keep the RESP open for up to 36 years in case studies resume later

• Transfer eligible amounts to the subscriber’s or spouse’s RRSP (subject to contribution room)

• Change the beneficiary to another qualifying family member

If no qualifying educational use remains available, investment earnings may eventually be withdrawn as Accumulated Income Payments (AIPs). However, these withdrawals can become costly, as they may be subject to both regular income tax and an additional 20% penalty tax. In many cases, government grants must also be repaid.

Tax Tips:

• Strategic RRSP transfers may help reduce AIP penalty exposure

• Large RESP withdrawals may unnecessarily increase taxable income

• Timing withdrawals during lower-income years may help minimize taxes

To learn more: See the comment

Looking for the smartest way to structure RESP withdrawals? Our experienced Canadian tax lawyers can help.

📞 416-367-4222

📩 [email protected]

Taxpage

All the tax help you need.

Disclaimer: This post is for educational purposes only and should not be taken as legal or tax advice.

We’re proud to share that Tax Page has once again been recognized with multiple Mondaq Canada Thought Leadership Awards across Canada and the United States - marking our sixth consecutive recognition in Canada, and our first in the US from Mondaq, now part of The Legal 500.

This cross-border recognition reflects our continued commitment to delivering timely, practical, and insightful analysis on Canadian and international tax developments.

Among the Spring 2026 recognitions:

Canada

• Compliance — Ranked #1

• FinTech — Ranked #1

• Finance & Banking — Ranked #1

• Real Estate & Construction — Ranked #1

• Technology — Ranked #1

United States

• Compliance — Ranked #1

• Employment & HR — Ranked #1

• FinTech — Ranked #3

“It is gratifying that Mondaq’s readers have recognized me - and by extension Taxpage.com - as a Leading Author for several top categories in Canada and the United States in the Spring 2026 awards. We work hard to provide timely and insightful commentary on issues affecting both businesses and individuals alike. We are pleased that our content is widely read and contributes meaningfully to Canadian & US tax dialogue,” said David J. Rotfleisch, C.P.A., J.D., founder and managing partner of Rotfleisch & Samulovitch P.C.”

We sincerely thank our readers, clients, and supporters for your continued trust and engagement.

Have a topic or article idea you'd like us to explore in detail? Send your suggestions to [email protected].

Taxpage.com

All the tax help you need.

Only 3 Days Left: What Canadian Taxpayers Risk Missing Before the April 30 Deadline

With the April 30, 2026 filing and payment deadline approaching, Canadian taxpayers who owe taxes should act now to help avoid unnecessary penalties and interest.

Even if you cannot pay in full, filing your return on time may significantly reduce the financial consequences of missing the deadline.

Key Rules to Know:

1. Interest on unpaid taxes

Beginning May 1, the CRA may charge prescribed interest, compounded daily, on outstanding balances.

2. Late-filing penalty

If you file late and owe tax, the CRA may charge:

• 5% of your balance owing, plus

• 1% for each full month your return is late, up to 12 months.

3. Repeated failure to report income

If you fail to report income in 2025 and also failed to report income in a prior required year, additional penalties may apply depending on the circumstances.

4. False statements or gross negligence

Knowingly, or through gross negligence, making false statements or omissions can trigger significant penalties.

5. Refund returns

If you are owed a refund, there is generally no late-filing penalty. However, filing delays may postpone your refund and certain benefits or credits.

Self-Employed Reminder

Self-employed individuals generally have until June 15 to file. However, if taxes are owing, payment is still due April 30.

Practical Tax Tips

• Review your return carefully

• Confirm deductions and credits

• File even if you cannot pay in full

• Seek professional advice for disputes, penalties, audits, or complex tax matters

Tax issue, CRA dispute, or late filing concern?

Our experienced Canadian tax lawyers can help.

📞 416-367-4222 (FREE 10-minute consultation)

📩 [email protected]

Taxpage

All the tax help you need.

Team Spotlight: Amol Bhangoo

Since joining Taxpage in June 2022, Amol has consistently distinguished himself through sharp legal thinking, adaptability, and a strong commitment to continuous growth.

From Ontario Small Claims Court and Landlord & Tenant Board procedures to bankruptcy matters and CRA tax issues, Amol has become a trusted resource for complex and evolving files.

What sets him apart is his drive to keep learning. Whether through webinars, independent study, or collaboration with colleagues, Amol is always working to expand his knowledge and refine his skills.

He has also contributed thoughtful tax articles that help make complicated legal issues more accessible to clients and readers alike.

Most importantly, Amol approaches every challenge with humility and a genuine respect for the value of every skill and contribution.

Thank you, Amol, for the professionalism, versatility, and dedication you bring to our team each day.

To learn more about Amol, see the comments.

Taxpage

All the tax help you need.

Paid Tuition Early? Why the CRA Denied This Student’s Tax Credit

A recent Tax Court of Canada decision is an important reminder for Canadian students studying abroad and families paying overseas tuition: paying tuition early does not automatically mean you can claim the full tax credit now.

In Ojaide v. The King (2025 TCC 180), a PhD student at the University of Leicester paid his 2022 tuition plus additional amounts applied to future academic terms. He then claimed the full payment on his 2022 Canadian return.

The CRA reassessed and allowed only the portion relating to 2022.

The Tax Court agreed.

It held that tuition credits for eligible foreign programs are tied to the year the tuition relates to, not simply the year the payment was made.

What This Means for Taxpayers

If your statement shows:

• advance payment

• account credit

• applied to next year

…the CRA may treat those amounts as relating to a future year and deny part of the current claim.

Tax Tips

• Claim tuition only for the year it applies to

• Review foreign university account statements carefully

• Keep payment records and billing breakdowns

• Seek professional guidance before filing amended or complex returns

Read the full case analysis here: https://taxlawcanada.com/canadian-students-studying-abroad-beware-why-tuition-paid-does-not-mean-anything-you-paid-this-year-ojaide-v-the-king-2025-tcc-180/

Need help claiming tuition credits or responding to a CRA reassessment? Our experienced Canadian tax lawyers can help.

📞 416-367-4222

📩 [email protected]

Taxpage.com

All the tax help you need