Stay updated with the latest news, tips, and guidance on tax law from our editorial team.
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,
Do you need to register for Provincial Sales Tax (PST)? Canada is unique in its administration of sales tax. Not only are there multiple types of sales tax, but the requirements vary from province to province. It is not surprising that many businesses are left wondering which taxes they
Building new properties and maintaining rental properties are already expensive as it is, but factoring in GST and HST can make the process even more burdensome. The Canadian Revenue Agency does offer partial tax rebates for new construction and there may be tax credits available if the property is going
An important part of strategic planning for any company is managing indirect tax risk. Indirect taxes generate significant revenue for governments. For example, the Government of Canada collected $38.2 billion in goods and services (GST) taxes during the fiscal year 2018-2019. Governments often levy multiple forms of indirect tax on
The new GST/HST rules surrounding Canadian sales tax present unique challenges for foreign businesses. While the new rules are designed to level the playing field for Canada-based businesses, those without a physical presence in Canada will need to adapt to continue selling goods and services to Canadian residents. If you
