What are the fees of tax lawyers in Halifax?

The fees of tax lawyers in Halifax vary based on experience and the complexity of the case, typically ranging from $200 to $500 per hour. It's advisable to discuss fees during the initial consultation for clarity.

What is the role of a tax lawyer in Halifax?

The role of a tax lawyer in Halifax involves providing expert legal advice on tax compliance, representing clients during audits, and assisting with tax disputes to ensure adherence to Canadian tax laws.

Can a Halifax tax lawyer help with tax planning?

A Halifax tax lawyer can significantly assist with tax planning by providing expert advice on compliance, optimizing tax strategies, and ensuring that clients take advantage of available deductions and credits to minimize their tax liabilities effectively.

What areas of tax law do Halifax lawyers specialize in?

Halifax lawyers specialize in various areas of tax law, including tax compliance, audits, tax planning, and dispute resolution. They provide expert guidance on both personal and corporate tax matters, ensuring clients navigate the complexities of Canadian tax regulations effectively.

What services do tax lawyers in Halifax provide?

Tax lawyers in Halifax provide a range of services, including tax planning, compliance advice, audit representation, dispute resolution, and assistance with tax recovery and appeals, ensuring clients navigate the complexities of Canadian tax law effectively.

Can I get a free consultation from a Halifax tax lawyer?

You can receive a free consultation from a Halifax tax lawyer, including Jeremy Scott, who offers initial assessments to discuss your tax concerns and determine the best course of action for your situation.

Can a tax lawyer in Halifax help with tax debt?

A tax lawyer in Halifax can assist with tax debt by providing expert guidance on resolving outstanding tax obligations, negotiating with tax authorities, and ensuring compliance with Canadian tax laws to help alleviate financial burdens.

How do I choose the best tax lawyer in Halifax?

Choosing the best tax lawyer in Halifax involves assessing their experience in Canadian tax law, client reviews, and their expertise in areas relevant to your needs, such as audits and compliance.

What qualifications should a Halifax tax lawyer have?

The qualifications a Halifax tax lawyer should have include a law degree, specialization in tax law, relevant certifications, and experience in Canadian tax regulations to effectively navigate audits and compliance issues for clients.

How long does tax resolution typically take?

The duration of tax resolution typically varies based on the complexity of the case, but it can take anywhere from a few weeks to several months to reach a satisfactory outcome.

What is the process for hiring a tax lawyer?

The process for hiring a tax lawyer involves researching potential candidates, assessing their expertise in tax law, scheduling consultations to discuss your needs, and ultimately selecting a lawyer who aligns with your requirements and budget.

What should I expect during a consultation?

During a consultation, you can expect a thorough discussion of your tax situation, where I will assess your needs, provide tailored advice, and outline potential strategies for compliance and resolution of any issues.

How can a tax lawyer assist with audits?

A tax lawyer can assist with audits by providing expert guidance on compliance, representing clients during the audit process, and helping to navigate complex tax laws to ensure the best possible outcome.

What are common tax issues in Halifax?

Common tax issues in Halifax include disputes over property assessments, compliance with local tax regulations, and challenges related to GST/HST claims. Additionally, residents often face complexities in navigating tax credits and deductions specific to Nova Scotia.

What documentation is needed for tax consultations?

The documentation needed for tax consultations includes your previous tax returns, income statements, receipts for deductions, and any relevant correspondence from tax authorities. This information helps us provide accurate advice tailored to your situation.

How do tax lawyers charge for their services?

Tax lawyers typically charge for their services through hourly rates, flat fees for specific tasks, or contingency fees based on the outcome of a case. The method can vary depending on the complexity of the services required.

What is the difference between tax lawyers and accountants?

The difference between tax lawyers and accountants lies in their roles and expertise. Tax lawyers specialize in legal matters related to tax law, providing legal representation and advice, while accountants focus on financial reporting, tax preparation, and compliance.

Can a tax lawyer help with estate planning?

A tax lawyer can significantly assist with estate planning by ensuring that your estate is structured to minimize tax liabilities and comply with Canadian tax laws, ultimately preserving more of your assets for your beneficiaries.

What are the benefits of hiring a tax lawyer?

The benefits of hiring a tax lawyer include expert guidance on complex tax laws, representation during audits, and assistance in ensuring compliance, ultimately helping you minimize liabilities and avoid costly mistakes.

How can I verify a tax lawyers credentials?

Verifying a tax lawyer's credentials involves checking their licensing status with the provincial law society, reviewing their educational background, and looking for any professional certifications or memberships in tax law associations.

What are the risks of not hiring a tax lawyer?

The risks of not hiring a tax lawyer include potential legal pitfalls, costly mistakes in tax filings, and the possibility of facing audits without proper representation, which can lead to significant financial penalties and liabilities.

What types of clients do Halifax tax lawyers serve?

Halifax tax lawyers serve a diverse range of clients, including individuals, small businesses, corporations, and non-profit organizations, providing tailored tax law services to meet their specific needs and compliance requirements.

How can a tax lawyer assist with compliance?

A tax lawyer can assist with compliance by providing expert guidance on tax laws, ensuring that clients adhere to regulations, and helping to navigate complex tax obligations to avoid penalties and audits.

What are the most common tax disputes?

The most common tax disputes involve issues such as audits, underreported income, disputes over deductions and credits, tax assessments, and penalties for non-compliance. These disputes often arise between taxpayers and the Canada Revenue Agency (CRA).

What is the role of a tax lawyer in litigation?

The role of a tax lawyer in litigation involves representing clients in disputes with tax authorities, providing legal advice on tax-related issues, and developing strategies to resolve tax controversies effectively.

How can I prepare for my first meeting?

Preparing for your first meeting involves gathering relevant documents, outlining your tax concerns, and formulating questions. This ensures a productive discussion and helps me understand your needs better.

What are the signs of a good tax lawyer?

The signs of a good tax lawyer include strong expertise in tax law, excellent communication skills, a proven track record of successful outcomes, and a client-focused approach that prioritizes your needs and concerns.

What should I ask during a consultation?

During a consultation, you should ask about the lawyer's experience with tax law, the specific services they offer, their approach to your case, potential outcomes, and the fees involved. This will help you gauge their expertise and suitability for your needs.

How do tax lawyers handle client confidentiality?

Tax lawyers handle client confidentiality by adhering to strict ethical guidelines and legal standards that protect sensitive information. They ensure that all communications and documents are kept private and secure, fostering trust and safeguarding clients' interests.

What are the latest tax law changes in Canada?

The latest tax law changes in Canada include adjustments to personal income tax brackets, increased tax credits for low-income individuals, and new regulations regarding digital economy taxation, all aimed at improving compliance and fairness in the tax system.

GST/HST on Digital Products in Canada

Jeremy Scott
November 11, 2021
4:04 pm

Businessman holding digital map of Canada

GST/HST on Digital Products in Canada

Canada has always been a global importer and exporter of goods and services. However, with more and more digital products in the marketplace, it is important to understand the impact of GST/HST on digital products in Canada. Legislative changes occurred in 2021 that directly address the taxation of digital economy businesses. If your business has digital products, contact the experienced tax attorney at Jeremy Scott Law at 902-403-7201 to help you better understand how you can remain compliant under these new laws.

New Canadian Tax Laws for Digital Economy Businesses

The Fall Economic Statement 2020 by the Government of Canada specifically addressed digital economy businesses. The measures discussed were ultimately revised and adopted as of July 1, 2021. As of this date, any digital economy business (including digital economy operators) may have new GST/HST obligations on their digital goods and/or services.

Types of Businesses Impacted by These New Laws

Every foreign business owner should receive specific advice regarding the way these new laws may impact their digital goods and/or services. In some cases, a business may not be required to charge and collect GST/HST. In other cases, businesses may be under an obligation to charge their customers GST/HST as a ‘digital platform operator’ for supplies obtained through a digital source or platform. Some of the types of businesses that may be affected by these new laws could include the following:

International Sellers of Digital Services and Products

Foreign-based businesses, vendors, or distribution platform operators that sell taxable digital services and/or products to Canadian companies or consumers may now face GST/HST obligations. Under the previous law, non-resident persons did not need to collect or remit GST/HST if they were not considered to be carrying on business in Canada. As a result, the consumer that purchased the digital good or service was required to self-assess the tax applicable on the good or service and pay the tax directly to the CRA. In reality, consumers rarely assessed and self-remitted this tax, and many purchases of digital goods and services through digital platforms went untaxed. As a result, Canadian business that supplied digital goods and services and who were required to collect the GST/HST were at a significant financial disadvantage when compare to these non-residents suppliers. The new law essentially requires that all non-resident vendors collect and remit GST/HST if the total amount of their taxable digital goods and services sold to Canadian consumers exceeds $30,000 over a 12-month period.

Fulfillment Warehouses

Non-resident vendors and/or non-resident distribution platform operators who distribute qualifying goods that are delivered and/or made available in Canada may also face these new GST/HST obligations. Vendors involved in making supplies of “qualifying tangible personal property” and who have goods located in a fulfillment warehouses in Canada, will also need to register for and collect GST/HST.

Again, under the new rules, both resident and non-resident distribution platform operators would need to register if the total amount of their qualifying goods to Canadian purchasers exceeded $30,000 over a 12-month period of time.

Short Term Accommodation Platforms

Suppliers of short-term accommodation services (or accommodation platform operators) may also face these GST/HST obligations. Specifically, the new GST/HST laws will impact transactions that involve short-term accommodation rentals of private residential property that are made available through digital platforms. For example, whether or not GST/HST applied on an accommodation through a platform such as AirBnB depended upon whether or not the property owner was registered to collect GST/HST. Under the new rules, the platform operator will often be required to collect GST/HST on all short term stays, regardless of whether or not the owner is a GST/HST registrant.

Impact of GST/HST on Digital Products in Canada

According to the previously mentioned Fall Economic Statement, retail e-commerce in Canada rose by nearly 70% in 2020. While some of this trend may be due to the lockdown and COVID-19 global pandemic, society as a whole has moved towards consuming more digital goods and services. The tax laws of Canada proved far too antiquated to capture these digital transactions, which placed local business at a financial disadvantage when compared to foreign competitors. If your company is involved in the sale, distribution, or transfer in any way of digital goods and services in Canada (either as a domestic or foreign entity), you should consider contacting an experienced tax attorney at Jeremy Scott Law to see if you have any increased legal or financial obligations under these new laws.

More Changes in 2022

Additionally, along with these new GST/HST laws, the Canadian government is expected to implement a new tax on corporations providing digital services, effective January 1, 2022. This new proposed tax will attempt to capture revenue from digital corporations specifically regarding value-creating activities through remote digital means. This could include the collection of user data or content creation, which is not currently under or subject to the Canadian corporate tax laws. The tax landscape for Canadian businesses is ever evolving and changing, especially when it comes to those corporations that are involved in the sale or distribution of digital goods and services. Visiting with an experienced tax attorney can help ensure your business remains compliant, regardless of any new adopted laws.

Contact an Experienced Canadian Digital Sales Tax Attorney

If you are a resident or non-resident business that provides digital goods or services to Canadian residents, you may have questions regarding whether you have any new financial obligations with respect to GST/HST on digital products in Canada. If your business has digital products that are offered for sale to Canadian consumers, contact an experienced tax attorney at Jeremy Scott Law at 902-403-7201 to ensure you understand all your legal obligations.

If you found this information valuable, I encourage you to check out my other blog posts.

The Disclaimer:

Please note the content above and throughout this website is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. I urge you to seek specific legal advice by contacting me (or your current legal counsel) regarding any legal issues you may face. I do not warrant or guarantee the quality, accuracy or completeness of any information found on this website and will not be held liable for anything contained in this document or any use you make of it. Finally, accessing the information on my website does not create a lawyer-client relationship.