Stay updated with the latest news, tips, and guidance on tax law from our editorial team.
CRA Can Now Require Oral Interviews Of Taxpayers The Canada Revenue Agency (CRA) has broad powers of audit that allow it to request records, documents, and evidence from taxpayers. Facing a need for increased revenues and a desire to collect unpaid taxes, the Government of Canada expanded these powers in
Guide To Quebec Sales Tax Those who conduct commercial activities in Quebec are required to register for both the Goods and Services Tax (GST) and the Quebec Sales Tax (QST). For new business owners, fulfilling these requirements may seem overwhelming at first. Canadian tax law can be complicated and confusing,
Changes to ITC Information Requirements In April 2021, the Canadian government implemented changes to ITC information requirements, which could have major implications for Canadian businesses. These changes are expected to make claiming Canadian Input Tax Credits (ITC) easier for business owners. Business owners should be aware of these changes and
Are you Facing Challenges as a result of the Deferral of your GST/HST In an effort to support distressed businesses during the COVID-19 pandemic, the Canada Revenue Agency (CRA) extended the time limit for business owners to file certain tax amounts collected, including GST and HST taxes. However, the deferral
Audit Activity in Canada The Canada Revenue Agency (CRA) is responsible for administering tax laws for the Canadian government, including most provinces and territories. During a recent Canadian Tax Foundation’s Ontario Tax Conference in Toronto, the CRA reported that it had identified $1.185 million from audits of small and medium-sized
According to data provided by the Government of Canada, goods and services tax (GST) accounted for more than 3.2 billion CAD in revenue for the fiscal year 2020-2021. GST, along with the harmonized sales tax (HST), and non-refundable provincial sales tax (PST), all comprise a substantial portion of the country’s
Canada imported goods worth $768 billion in 2019. The largest source of imported goods into Canada is from the United States. Understanding tax requirements can be complicated without the assistance of a legal professional. Selling goods in Canada through a fulfillment centre requires an understanding of basic tax obligations in
GST/HST and Sales of Real Property I am often asked: “Is there GST on the sale of Real Property?”. The answer of course is, it depends. The application of the Goods and Services Tax / Harmonized Sales Tax (‘GST/HST’) to real estate transactions is particularly risky for a number of
Defining a Digital Good The digital economy is expanding in Canada and globally every year. E-commerce has changed the way Canadians shop, and how businesses sell goods and services. According to Statistics Canada, an estimated 82% of Canadians shopped online in 2020, spending a total of $84.4 billion on digital
If you are a director of a company in Canada, you are already likely aware of the legal and financial challenges that businesses face, specifically related to taxes. The Canada Revenue Agency (CRA) issues assessments every year against directors to collect unreported taxes. Even if you are a director of
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
Owning and operating a Canadian startup company can be a highly lucrative and exciting venture. At the onset of establishing a business venture, however, there are many major decisions to be made regarding how the company will operate. A major piece of the puzzle involves taxes. How much are Canadian
Establishing a business within Canada requires an understanding of Canadian tax law and the rules and regulations surrounding how to charge sales tax within the country. But what happens when your business extends beyond Canadian borders and into the European market? Unfortunately, European Union value added tax, or EU VAT,
First Nation persons and GST/HST exempt sales is a topic that can be confusing and legally complex. Who is eligible, and what goods and services qualify? What responsibilities rest with First Nations persons, bands or band empowered entities when making a purchase, and what responsibilities are the vendors? There are
The tax laws enforced by the Canada Revenue Agency (CRA) can be overwhelming and complicated. In some cases, interest and penalties apply on certain taxable amounts. In a recent court case, the Federal Court of Appeal in Canada has taken a definitive stance on GST/HST interest and penalties that apply
According to the Organization for Economic Co-operation and Development (OECD), Canada received on average a lower proportion of revenues from taxes on goods and services than other OECD member countries. However, that does not mean that there are not still significant cashflow impacts of GST on Canadian businesses. In Canada,
