Tax & Trade Blog

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MISSED A GST/HST REBATE DEADLINE?

TCC SAYS SUBSECTION 296(2.1) MAY NOT SAVE LATE GST/HST REBATE CLAIMS

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Taxpayers who fail to file a GST/HST rebate application within the applicable two-year limitation period may, in some circumstances, look to the relieving provisions in subsection 296(2.1) of the Excise Tax Act (“ETA”) for assistance. That provision seemed to require an otherwise unclaimed (or statute-barred) GST/HST rebate to be applied against a taxpayer’s net tax if the period was later audited.

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NOTICE OF ASSESSMENT NOT RECEIVED. CAN I APPEAL?

TAX COURT SETS FOUR-STEP PROCESS FOR GETTING NOTICES OF OBJECTION BACK ON TRACK

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When it comes to filing a Notice of Objection (an “Objection”) in respect of a Notice of Assessment (an “NOA”) for GST/HST or income tax matters – or many other matters involving federal taxes – most taxpayers will know that they generally have a 90-day window to file that Objection.

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TARIFF CLASSIFICATION & BILINGUAL INTERPRETATION

CITT CONFIRMS THE NARROWER SHARED MEANING MAY DETERMINE THE RESULT

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Tariff classification is the process of identifying and categorizing goods imported into Canada under the applicable tariff provisions. It determines the applicable rate of customs duty and, in turn, how much duty an importer must pay when the goods enter Canada.

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EXCISE ACT 2001 RECORDKEEPING REQUIREMENTS

MORE THAN MEETS THE EYE — CRA’S STRINGENT REQUIREMENTS

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The Excise Act, 2001 (“EA 2001”) governs the taxation and regulatory framework applicable to specified goods, including tobacco, wine, spirits, and, more recently, vaping products. Recordkeeping requirements under the EA 2001 are among the most stringent in Canadian tax legislation. In our experience, CRA is increasingly relying on imperfect or incomplete records as a basis for assessing additional duty, interest, and, in some cases, significant penalties.

In this Indirect Tax Report, we review the statutory requirements for books and records under the EA 2001 and highlight key compliance risks and practical traps for industry participants.

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WHEN IS CANNABIS, CANNABIS?

CRA TAXING TRIM LIKE CANNABIS

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Cannabis cultivators and producers will generally be aware of the two-tier flat tax that applies to the production of cannabis products, such as pre-rolls. That is, a higher tax rate of $0.25 per gram applies to flowering material, while a lower tax rate of $0.075 per gram applies to non-flowering material – putatively on the basis that it is far less potent in terms of cannabinoid content (THC and CBD).

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CANADA-CHINA TRADE RESET

SIX MONTHS LATER: WHAT HAS REALLY CHANGED?

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Following escalating trade tensions since 2024, Prime Minister Carney’s January 2026 visit to China produced a notable attempted “reset” in Canada-China trade relations. The tariff measures agreed to as part of that reset took effect on March 1, 2026.

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SIMPLIFIED CANADIAN TRANSFER PRICING RULES

NEW RULES ADDRESS OLD PROBLEM: SMALLER BUSINESS DOCUMENTATION STANDARDS

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Canada’s transfer pricing rules were first introduced in 1997 and essentially require Canadian businesses transacting with related foreign parties – for example, buying, selling or licensing goods, services and intangibles within a multinational corporate group – to maintain written documentation explaining how their prices comply with internationally accepted arm’s length principles. The Canada Revenue Agency (“CRA”) has historically adopted the OECD Transfer Pricing Guidelines for that purpose.

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CRA AUDIT SETTLEMENTS: IS THAT A REAL THING?

CRA EXPLAINS HOW AUDITS CAN BE SETTLED & WHO REALLY MAKES THE DECISION

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Many taxpayers assume that once a CRA auditor starts an Audit, the Audit needs to be completed, with no opportunity to reach an early settlement on contentious issues. To the contrary, CRA has recently confirmed that many Audits can, in fact, be settled – albeit only after being subject to additional internal review before becoming final.

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WINERY COMPLIANCE IN ONTARIO AND B.C.

UNDERSTANDING THE FEDERAL EXCISE ACT 2001 COMPLIANCE REGIME

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Ontario and British Columbia (“B.C.”) are leading wine-producing provinces with well-established statutory frameworks governing how wineries may produce, market, and sell wine. Those provincial rules, however, are only part of the compliance picture. Wineries in Ontario and B.C. are also subject to the Federal Excise Act, 2001 (“EA 2001”), which imposes a separate compliance regime for licensing, reporting, removals, and recordkeeping.

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钢铁产品关税减免机会

减免机会确实存在，但如果不能自动获得，就变成了一场等待游戏!

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Steel Remission Opportunities

Available, But if Not Automatic, It Will Be a Real Waiting Game!

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我们此前已在这里和这里介绍过加拿大针对钢铁产品实施的多种附加税，并在这里讨论了加拿大对其中部分钢铁附加税措施的延长，包括适用于多个行业和产品的横向关税减免措施。

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航空燃油销售 —— GST 纳税义务

CRA 认定“注入油罐”式燃油销售应税，企业面临实际 GST 风险

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Stored Aviation Fuel Sales – GST Liability

CRA Position on Taxable “Into-Tank” Fuel Sales Creates Real GST Risks

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航空业长期以来一直存在一个 GST/HST 问题：用于国际商业航班的航空燃油，如果并非直接加注至飞机油箱（“into the wing”），而是先交付至机场储油罐，是否仍可适用零税率。 加拿大税务局CRA在近期的圆桌会议讨论中继续坚持其立场，即由于存在燃油被转作其他用途的风险，交付至储油罐的燃油应缴税。

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加拿大延长附加税措施

财政部确认将延长钢铁附加税及相关减免措施

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CANADA EXTENDING SURTAX REGIMES

DOF CONFIRMS EXTENSIONS INCOMING ON STEEL SURTAXES & RELATED RELIEF

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加拿大财政部（“DOF”）近日发布新闻稿，确认加拿大将延长若干钢铁附加税措施及针对进口钢铁产品的横向关税减免措施。延长这些措施的目的是为了“保护钢铁工人和行业免受钢铁贸易转移的影响”并“为生产商和进口商提供商业可预测性和更长期的确定性”。

在本期《钢铁行业法律评论》中，我们将介绍哪些附加税措施及税款减免类别预计将在近期获得延长。

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铝产品附加税法律评论

加拿大针对中国铝产品实施多项附加税

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Aluminum Surtax Report

Multiple Canadian Surtaxes Target Chinese Aluminum

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与我们此前在此处和此处介绍过的加拿大钢铁附加税制度类似，加拿大针对进口铝产品也实施了一系列附加税。具体来说，中国原产的铝产品是若干附加税措施的主要目标之一。这一点其实并不令人意外，因为中国是全球最大的铝生产国之一，并常被称为全球铝产业的“重心”所在（中国目前铝产量占全球的60%以上）。

在本期《海关与贸易法律评论》中，我们将介绍加拿大针对铝产品的附加税制度，并讨论加拿大《特别进口措施法》（“SIMA”）下同样影响铝产品进口的若干反倾销及反补贴税（“ADCVD”）规则。

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STRICTER FORCED-LABOUR REGIME AHEAD?

CANADA TO STRENGTHEN FORCED LABOUR REGIME UNDER U.S. TARIFF PRESSURE

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Forced-labour compliance has been a growing issue for Canadian importers for several years.  While Canada already has import restrictions on forced-labour products in place, the federal government is now looking to strengthen that regime further — this time under U.S. tariff pressure.

On June 2, 2026, the United States Trade Representative (“USTR”) announced that Canada had failed to effectively enforce prohibitions on goods made with forced labour.  Accordingly, the USTR has proposed an additional 10% tariff on goods from Canada.

In response, Canada has indicated that new legislation will soon be introduced to make that regime even stronger.  For importers, this is a clear signal that the forced-labour rules may become stricter.

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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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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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BEST PRACTICES FOR FORCED LABOUR REPORTING

CANADA PUBLISHED BEST PRACTICES ADVICE FOR FORCED LABOUR REPORTING

As we wrote here, Canada joined the United Kingdom and Australia last year in adopting a joint global reporting template for forced labour and child labour disclosures. The new template consolidates the legislative reporting requirements of all three countries and is intended to simplify reporting for organizations operating across multiple jurisdictions.

In practice, Canadian reporting entities often face challenges in producing properly scoped reports that align with Public Safety Canada’s expectations. In response, Public Safety Canada (“PSC”) has published "Best Practices" tips and updated resources, aimed at improving report quality and supporting ongoing compliance under the Supply Chains Act.

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SALE OF MIXED USE REAL PROPERTY PROBLEMATIC

ONTARIO COURT IDENTIFIES CHALLENGES OF SELLING RESIDENTIAL / COMMERCIAL PROPERTY

Most real property owners in Canada are aware that their tax obligations may differ depending on whether a property is used for residential (such as renting as a home or apartment) or for commercial purposes (such as renting for business use).

A recent Ontario Superior Court decision identifies problems that can arise from poorly drafted Agreements for Purchase and Sale (“APS”) and highlights the need to obtain proper GST/HST advice before signing such agreements.

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LAWYERS REQUIRED IN MOST LARGE TAX APPEALS

TCC REVIEWS NEW TAX COURT RULES APPLYING TO GENERAL PROCEDURE CASES

In a remarkable decision rendered with a great deal of humility, and with great credit to the Tax Court Justice involved, the Tax Court of Canada (“TCC”) in Tanafranca v. The King (2025 TCC 169) has taken the opportunity to review recent changes to the manner in which large taxpayers may be represented in their Tax Court Appeals.

This case is a reminder for taxpayers that, in General Procedure cases, Experienced Tax Counsel will be required – and usually for good reason.

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EMPLOYEE OR INDEPENDENT CONTRACTOR?

SIGNIFICANT TAX & LEGAL CONSEQUENCES COME WITH MISCLASSIFICATION

One area of Indirect Tax that is often underemphasized and underappreciated by businesses and tax professionals alike is the proper classification of employees and independent contractors. Canada’s rules generally mirror those in the United States, and in both jurisdictions, misclassification of a worker (i.e., classifying the worker as an independent contractor instead of an employee) can give rise to significant tax and legal consequences.

In this Report, we review the Canadian and U.S. rules, and the challenges businesses face in navigating this classification process.