Tax & Trade Blog

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GST 101: GST REGISTRATION RULES

CANADA'S BROAD REGISTRATION RULES FOR ITS GST/HST SYSTEM

This is the first in our series of "GST 101 Reports", written with a view to educating our readers on the basics of Canada's GST/HST system, and building towards more in-depth discussions to come.

This Report Deals with Canada's extremely broad GST/HST Registration Requirements.

What is Canada's “GST/HST”?

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WHEN DO I NEED A TAX OR TRADE LAWYER?

RETAINING A LAWYER AT AUDIT OR ASSESSMENT A WISE DECISION!

In my 35+ years of experience, I have seen the tax world evolve quite a bit.  It used to be that tax or trade lawyers were engaged very early on in most disputes.  Usually at the time of audit.  Overtime, we have seen clients try different approaches, from beginning to use non-lawyer accountants or customs brokers for dispute resolution, to (most recently) relying on AI to fight the dispute for them.

Four Reasons to Retain Experienced Counsel Early

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CANADIAN T4A REPORING REQUIREMENTS

COMPLICATED FOR DIRECT SELLERS & DEPENDENT ON DISTRIBUTION MODELS

Canadian direct selling companies (the “Company”) typically operate using one of two different distribution models.

In the “classic model”, independent sales contractors (“ISCs”) would be expected to purchase goods from the Company and resell them to consumers or other ISCs, with the ISCs earning a mark-up on the difference between their purchase and selling prices.  In the more modern variation of direct selling distribution, the Company would be expected to sell directly to consumers but compensate their ISCs for acting as either sales agents or sales representatives, based on their parts in putting the sales transaction together.

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PRESIDENT TRUMP RELIEVES AUTO TARIFFS

NAVIGATING THROUGH TARIFF TROUBLE

On April 29^th 2025, President Trump suspended the operation of automotive tariffs and provided other relief in the form of an import adjustment offset (see Proclamation here).  Those original automotive tariffs were announced on March 26 2025 (see Proclamation here).  In that original proclamation, the President imposed a 25% tariff on automobiles set to begin on April 3^rd.  He further announced a 25% tariff on automobile parts to begin no later than May 3^rd.  These automotive tariffs included articles made of steel and/or aluminum.  The President then issued a further proclamation which modified the March 26 2025 tariffs. 

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AIRBNB HOMES SALES SUBJECT TO GST/HST

FCA CONFIRMS SALE OF AIRBNB PROPERTIES SUBJECT TO GST/HST

The Federal Court of Appeal (“FCA”) has recently confirmed a Tax Court of Canada (“TCC”), ruling that the sale of a property used for short term rentals on Airbnb are subject to Federal GST/HST.

In the short term, this decision will increase the cost of properties at a time when real estate prices are already deflated across Canada.  We should expect to see that depreciation hit condominiums.

With proper planning, this tax consequence (i.e., GST/HST applied to the sale of Airbnb properties) can be ameliorated, but experienced GST/HST counsel will be required.

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TRUMP TARIFFS & CANADIAN MADE CARS

HARD TIMES REVING UP FOR CANADIAN AUTOMOTIVE SECTOR

On Wednesday March 25^th, the President signed a proclamation which invoked s. 232 of the Trade Expansion Act of 1962, s. 604 of the Trade Act of 1974 and Section 301 title 3 of the U.S. Code.  This new Executive Order has imposed a 25% tariff on imports of automobiles and certain automobile parts. 

What is a tariff?

A tariff is a duty imposed on the import of goods into a country, usually at a stated percentage, with the importer charged the corresponding amount based on the "value for duty" of the good.  A 25% tariff on a $50,000 car is $12,500.  Tariffs, if paid by a wholesaler or retainer are usually passed on down the supply chain and borne by the final consumer.  In that sense, a tariff functions like a tax; the government imposes a price on goods making those goods more expensive.  The hope is that by increasing the price of foreign goods, citizens will purchase homegrown alternatives.