Tax & Trade Blog

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FEDERAL FUEL TAX HOLIDAY

GOVERNMENT TO SUSPEND FEDERAL EXCISE TAX ON CERTAIN FUELS

The Department of Finance Canada and Office of the Prime Minister both announced today that the Government of Canada will be temporarily suspending the Federal Fuel Excise Tax on gasoline, diesel and certain aviation fuels (the “Fuel Tax Holiday”).

In this report, we provide some legislative and socio-economic/political background on the Fuel Tax Holiday and explain its parameters.

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TAX OBJECTIONS: WHAT HAPPENS NEXT?

APPEALS PROCESS MOVES SLOWLY UNTIL SUDDEN ACTION IS REQUIRED

As we have reported on, Canada Revenue Agency (“CRA”) and other government authorities appear to be ramping up their tax audit activity. While taxpayers have statutory rights to appeal assessments they view as incorrect by filing a Notice of Objection, what happens after filing those documents can be unclear.

Appeals processes initially move slowly and can feel a bit like a “black box”. Government officials are generally not forthcoming with updates, and it is not uncommon for taxpayers to hear nothing for months – or even years! However, when the appeal does advance, the timelines for action can suddenly become very short.

A failure to respond in time can result in an objection being denied, or the permanent loss of one’s further appeal rights.

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CRA INFORMATION REQUESTS - SHOPIFY 2

FEDERAL COURT DISMISSES CRA UNNAMED PERSON REQUIREMENT IN SHOPIFY 2

Among the most important decisions for GST/HST practitioners in 2025 were two Federal Court rulings dismissing applications by the Canada Revenue Agency (“CRA”) for unnamed persons requirements (“UPRs”) – a type of information demand in respect of an ascertainable group of unnamed persons that requires Court authorization – directed to Shopify Inc. (“Shopify”).

Below, we review the second of these two Federal Court decisions involving Shopify (Canada v. Shopify Inc., 2025 FC 969 – “Shopify 2”), in which the CRA failed to satisfy the requirement that the target group under its UPR be “ascertainable”.

For our review of the first Shopify decision, click here.

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CRA INFORMATION REQUESTS - SHOPIFY 1

FEDERAL COURT DISMISSES CRA UNNAMED PERSON REQUIREMENT IN SHOPIFY 1

Among the most important decisions for GST/HST practitioners in 2025 were two Federal Court rulings dismissing applications by the Canada Revenue Agency (“CRA”) for unnamed persons requirements (“UPRs”) – a type of information demand in respect of an ascertainable group of unnamed persons that requires Court authorization – directed to Shopify Inc. (“Shopify”).

Below, we review the first of these two Federal Court decisions (Canada v. Shopify Inc., 2025 FC 968 – “Shopify 1”), in which the CRA’s UPR was found not to have the required purpose of verifying compliance with a duty or obligation under Canadian tax law.

For our review of the second Shopify decision, click here.

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CBSA INVESTIGATING PLYWOOD IMPORTS AGAIN

ALLEGED DUMPING OF DECORATIVE AND NON-STRUCTURAL PLYWOOD FROM CHINA

On April 10, 2026, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of certain Plywood originating in or exported from the Peoples’s Republic of China (“China”). This investigation was prompted by complaints filed by Columbia Forest Products and the Canadian Hardwood Plywood and Veneer Association, and it is the second such investigation by the CBSA scrutinizing imports of plywood from China.

The Subject Goods

The goods under investigation are more specifically defined as:

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TCC: NEW HOUSING REBATES & SOCIAL JUSTICE

TCC DECISIONS SEEM TO BE RECOGNIZING MODERN HOUSING REALITIES

Homeowners who claim New Housing Rebate often face Canada Revenue Agency (“CRA”) review. The central issues in these cases are often whether the homeowners intended to use the subject home as a primary place of residence (or for some other purposes) and whether the home was in fact occupied as a place of residence following construction or renovation.

While the Tax Court of Canada (“TCC”) has traditionally adopted a fairly rigorous approach when interpreting and applying these two requirements, two recent TCC decisions seem to reflect a more flexible approach, perhaps aligning with modern housing realities.

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SUPPLY CHAIN LABOUR REPORTS DUE MAY 31

FEDS NOW EXPECT MORE TO PREVENT FORCED/CHILD LABOUR IN SUPPLY CHAINS

May 31, 2026 is the due date for annual reports (“Annual Reports”) required under Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Act”).

In this International Trade Report, we explain what these Annual Reports require, how those requirements have changed for 2026, and other useful guidance for businesses impacted by the Act’s mandatory reporting regime.

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CANADA HAS A JONES ACT!

COASTING TRADE ACT BARS FOREIGN SHIPS FROM MOVING GOODS WITHIN CANADA

The Jones Act is a United States (“US”) statute barring foreign vessels from moving goods between two points in the US. The little-known Coasting Trade Act (the “CTA”), administered by Transport Canada, is Canada’s equivalent to the Jones Act.

In this International Trade Report, we compare the CTA with its US counterpart and explore how to navigate its complex rules.

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CRA REQUESTS FOR INFORMATION

RFI ONE OF CRA'S MOST POWERFUL TOOLS – AND MAY SOON GET MORE POWERFUL

A Request for Information (RFI) is the Canada Revenue Agency’s (CRA) formal written request for answers and documents which it subsequently uses as the factual foundation of its Audit.

In the previous entry in our Tax Audits Series, we provided practical guidance on responding to initial communications from the CRA. In this entry, we dive deeper into RFIs specifically, which are one of CRA’s most powerful tools in the early stages of an Audit.

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SAFEGUARD INQUIRY: CANNED/FROZEN VEGGIES

 CITT TO DETERMINE WHETHER IMPORTS THREATEN CANADIAN PRODUCERS

On March 16, 2026, the Canadian International Trade Tribunal (“CITT”) issued a Notice of Commencement of Safeguard Inquiry under the Canadian International Trade Tribunal Act in respect of imports of certain canned and frozen vegetables (“Subject Goods”). The matter was referred to the CITT by the Government of Canada through an Order in Council on March 13, 2026, which was prompted by a formal request from the Canadian Association of Vegetable Growers and Processors.

The Subject Goods

The goods under investigation are more specifically described as:

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PROCEDURAL RULES TRUMP INDIGENOUS TAX RIGHTS?

FCA: BEFORE CONSTITUTIONAL RIGHTS ASSERTED, NORMAL PROCESS TO BE FOLLOWED

Our Indirect Tax Practice often involves the intersection of Indigenous Peoples’ rights, especially under sections 87-89 of the Indian Act, and tax legislation.

Below, we review Zachary v. Canada, 2026 FCA 55 (“Zachary”), a recent Federal Court of Appeal (“FCA”) decision ruling that despite the substantive rights afforded by the Indian Act and constitutionally to Canada’s Indigenous Peoples, Status Indians are still required to comply with all “procedural” requirements (e.g. time requirements, Notices of Constitutional Questions, etc.) in the applicable taxing legislation before asserting those substantive rights!

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CBSA INVESTIGATING UNARMOURED BUILDING CABLES

DUMPING OF UNARMOURED BUILDING CABLES FROM CHINA

On March 16, 2026, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of unarmoured building cables from China. This investigation was prompted by a complaint filed by a manufacturer in Quebec.

The goods under investigation are more specifically described as:

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PRELIMINARY DETERMINATION: TRUCK BODIES

CBSA IMPOSES PROVISIONAL DUTIES ON TRUCK BODIES FROM CHINA

On March 6, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping and subsidizing in respect of truck bodies originating in or exported from the People’s Republic of China (the “Subject Goods”). Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after March 6, 2026.

Background Information

On October 24, 2025, the CBSA issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of the Subject Goods, which are defined as follows:

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CITT FINDING: CAST IRON SOIL PIPE

ANTI-DUMPING DUTIES OF 444% ON CAST IRON SOIL PIPE FROM CHINA

On February 6, 2026, the Canadian International Trade Tribunal (the “CITT”) announced its Finding in Inquiry NQ-2025-006 (the “Finding”) reporting that the dumping and subsidizing of cast iron soil pipe having a nominal outside diameter from 1.5 inches to 18 inches, originating in or exported from China (the “Subject Goods”) had caused injury to the domestic industry.

New Anti-Dumping Duties (“ADDs”) and Countervailing Duties (“CVDs”) now apply to cast iron soil pipe imported into Canada and released after February 6, 2026.

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CBSA TARGETTING CHEESE DOG TREATS

IMPORTERS OF DOG TREATS COULD FACE MASSIVE DUTY ADJUSTMENTS

The Canada Border Services Agency (“CBSA”) has listed verifying tariff classifications of cheese treats for dogs (“Cheese Treats”) as one of its compliance priorities for 2026. While it may sound niche, CBSA has identified Cheese Treats as a potential threat to Canada’s supply-managed dairy system, which is one of Canada’s most consequential – and sometimes controversial – trade barriers.

In this Customs & Trade Report, we explain what is behind this strange new CBSA effort, and why impacted importers could face significant financial risk.

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GATHERING DOCUMENTS BEFORE AN AUDIT

 KNOWING WHAT TO PROVIDE IS KEY - BUT MAY REQUIRE EXPERT LEGAL GUIDANCE

Businesses often respond to the initial communications from the Canada Revenue Agency (“CRA”) without much thought. In the early stage of an Audit, the whole process can seem deceptively casual. Handling things this way can be a huge mistake. Knowing what one is – and is not – required to provide the CRA is often critical to how the Audit progress, especially for large businesses.

In this Tax Audits blog, we review some of the more common hazards for taxpayers during this preliminary, seemingly simple stage of the Audit, and illuminate why the information gathering process can be hugely consequential.

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PROVISIONAL DUTIES ON FIBRE TABLEWARE

CBSA IMPOSES PROVISIONAL DUTIES ON THERMOFORMED MOLDED FIBRE TABLEWARE

On February 27, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping and subsidizing in respect of thermoformed molded fibre tableware originating in or exported from China (the “Subject Goods”).

Provisional duties are now imposed on imports of the Subject Goods released by the CBSA on or after February 27, 2026!

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DIRECT SELLING & CONSUMER PROTECTION

REGULAR REVIEW FOR COMPLIANCE WITH PROVINCIAL RULES RECOMMENDED

Provinces and Territories across Canada have consumer protection laws in place to protect consumers purchasing elsewhere than at a traditional retail store. Among other things, these laws set out certain informational disclosure requirements in sales contracts/order forms of direct selling companies (“DS Contracts”).

Recently there has been an uptick in enforcement action by provincial regulators concerned about DS Contracts which don’t comply with their laws. It is advisable for businesses to review their own contracts for compliance before the regulators come knocking!

Failure to comply with these requirements may grant consumers increased cancellation rights or may result in the regulator imposing fines against the business!

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OECD ADAPTS TO REMOTE WORK ECONOMY

HOME OFFICES AS POTENTIAL PERMANENT ESTABLISHMENTS IN REMOTE WORK ERA

On November 19, 2025, the Organization for Economic Co-operation and Development (“OECD”) released an update to the OECD Model Tax Convention on Income and on Capital (the “2025 Update”).

Among the changes are important clarifications to the Commentary on Article 5, dealing with the meaning of Permanent Establishment (“PE”) – and more specifically directed at helping determine when an individual’s home office may constitute a PE of the enterprise engaging the worker.

In a world increasingly shaped by remote work, changes like these are timely and likely only the beginning of further developments – and tax audits!

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GROWING GST RISK FOR COMMERCIAL BUILDERS?

PRESSURE TO GRANT GST REBATES NOW A HARBINGER OF AUDIT ISSUES TO COME

A good friend who’s a lawyer in the thick of things in the commercial building space recently prognosticated that with all of the pressure on Commercial Builders to close new home and (particularly) condo deals, they have been granting GST/HST New Housing Rebate credits that may not ultimately pass muster.

We review the latent liability risk that may be facing Commercial Builders below.