Canada’s federal and provincial taxes of “vaping products” is really a vaping duty imposed under the Excise Act, 2001(the “Vaping Duty” and “EA 2001”), and the CRA is in charge of administering that excise duty – Including related audit activities.
CRA appears to be ramping up its audit activity in this area, now issuing proposed and final assessments under the taxing provisions in EA 2001 sections 158.57, 158.58 and 158.61.
Based on recent inquiries, it appears that the Canada Border Services Agency (the “CBSA”) is currently focusing on verifying whether importers are using the correct tariff classifications when reporting importations of various spices and seasoning products.
Importers of spices and seasoning products – and their foreign producers – should take any inquiries from CBSA seriously!
The Ontario Court of Appeal (the “OCA”) has recently upheld (Sims Professional Corporation v. Cooke, 2024 ONCA 388) a non-competition clause, and in the process confirmed several important points about the Court’s approach to reviewing such clauses.
This is good news for the direct selling industry and signals that properly drafted non-compete clauses with independent contractors can be upheld in Canada. However, each company’s clauses should be considered in the context of the Court’s approach, as enforceability can depend on the details.
After more than 30 years, the Canada Revenue Agency (“CRA”) is revoking an administrative arrangement with the Canadian Dental Association that simplified claiming input tax credits (“ITCs”) for GST/HST registered dental practitioners who make both taxable zero-rated supplies (e.g., orthodontic appliances and cosmetic services) and tax-exempt supplies (e.g., dental and orthodontic services).
Per CRA Notice 339, the CRA is revoking its administrative arrangement as it moves towards a stricter adherence to the rules in the Excise Tax Act (“ETA”) – likely requiring more detailed records.
This shift appears to be a response to recent Court decisions holding that supplies of orthodontic appliances and orthodontic services are separate supplies – opening up the ability to claim ITCs (which we have written about here).
The changes take effect beginning as early as January 1, 2025!
The federal government has announced that there will be a tax break from December 14th, 2024 to February 15th, 2025 on a broad range of consumer products, which is estimated will provide $1.6 billion in federal tax relief.
In addition to relieving the 5% GST, the HST component will be also fully removed in Ontario, Newfoundland & Labrador, Nova Scotia, New Brunswick, and Prince Edward Island.
On June 1, 2022, Quebec’s Bill 96 amended the Charter of the French Language (the “French Charter”) to include changes to the use of English trademarks on product packaging. Effective June 1, 2025, a registered trademark is generally exempt from the French language requirements (meaning it does not have to be in French).
While this largely codifies existing jurisprudence, accompanying amendments to the Regulation respecting the language of commerce and business (the “Regulation Amendments”) will require additional French wording in some cases, also effective June 1, 2025.
Along the same lines as federal initiatives to target the resale of renovated homes held for short periods of time through assessments, which we have blogged about here, the government of British Columbia is now introducing a new tax on profits from sales of residential property in B.C. owned for less than two years!
Starting January 1, 2025, the new so-called “Home Flipping Tax” under the Residential Property (Short-Term Holding) Profit Tax Act, (the “Act”) will apply to residential properties sold within 730 days of purchase, with certain important exceptions. The tax is part of the B.C. government’s broader strategy to improve housing affordability in the province by discouraging short-term holding of property for profit.
Those active in B.C.’s residential real estate market should take note!
On October 18, 2024, the Department of Finance launched its remission process to allow Canadian businesses to apply for relief or refund from surtaxes levied at Chinese products in an effort to level the playing field for Canadian businesses and workers. Eligible Canadian businesses can apply to the Minister of Finance and present their plea on how the surtax policies have unduly burdened their business operations.
Businesses that request remission prior to November 8, 2024, will receive priority in application processing, while subsequent submissions will be processed thereafter in the usual course.
Over the past several months, Global Affairs Canada has been in the process of consultingwith Canadians on the operation of the Canada-United States-Mexico Agreement (“CUSMA” – also known in the US as the “USMCA”) ahead of the first joint review of the agreement set to take place in 2026.
As we have previously blogged about here, CUSMA is the current iteration in a history of “free trade” agreements between Canada, the United States and Mexico, and it includes built-in formal six-year joint reviews between its member nations to consider improvements and possible extensions.
On October 16, 2024, the Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2023-007 (the “Order”), continuing its finding of material injury in respect of the dumping of Carbon Steel Welded Pipe originating in or exported from Pakistan, the Philippines, Türkiye (Turkey), and Vietnam (the “Subject Goods”).
The Subject Goods
The Subject Goods are defined as:
As we have previously written about here and here, the Canada Border Services Agency (“CBSA”) has been in the process of rolling out their “CBSA Assessment and Revenue Management” (CARM) project.
Despite recent concerns over more delays, the scheduled CARM cutover period is now underway and the full functionality of the CARM Client Portal is set to be released on October 21, 2024.
Global Affairs Canada (“GAC”) has announced it is now accepting applications for the 2025-year tariff rate quotas (the “TRQs”) for most dairy products (including cheese and ice cream), and poultry (including eggs). Applications opened October 1, 2024, and the deadline to apply is November 15, 2024.
What is a TRQ?
On October 7, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a notice that it was beginning an expiry review in respect of certain hot-rolled carbon steel plate and high-strength low-alloy steel plate originating in or exported from the Republic of Bulgaria, the Czech Republic and Romania (the “Subject Goods”). On October 8, 2024, the Canada Border Services Agency (the “CBSA”) similarly gave notice of the initiation of their parallel expiry review investigation.
More details on the technical definition of the Subject Goods can be found here.
On September 19, 2024, the Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2023-006 (the “Order”), continuing its finding of material injury in respect of the dumping and subsidizing of Cold-Rolled Steel originating in or exported from China, South Korea, and Vietnam (the “Subject Goods”).
The Subject Goods
The Subject Goods are defined as:
In yet another interesting legal battle involving Uber, the Ontario Court of Appeal has confirmed that even when a party overpaid on GST/HST, there is no right to recover that tax from the person or company that charged that tax.
This means the only redress is through the refund or rebate provisions in the Excise Tax Act (“ETA”).
The Government of Canada’s website cautions returning travellers to “Be sure . . . declare everything”. However, problems can arise, and the Canada Border Security Agency (“CBSA”) could seize your goods like jewellery.
Having one’s jewellery, especially rings and necklaces of sentimental or significant value, seized can be an incredibly stressful situation. Our previous blog considered this subject, and we will provide you with further insight into the appeal process.
On October 1, 2024, the Canadian government released the final list of which goods will be subject to the 25% surtax on steel and aluminium products coming from the People’s Republic of China effective October 22, 2024 (the “Final List”).
The Final List is rather broad, and includes many items of iron, steel, or aluminum that could be used by manufacturers across various industries, including ingots, flat-rolled coils, bars and rods, extrusion shapes and sections, tubes pipes and hollow profiles, etc.
The Competition Bureau (the “Bureau”) is asking for public feedback on how the recent Competition Act'greenwashing' amendments should be enforced.
The amendments, which came into effect June 24, 2024, add two new types of “reviewable conduct” covering representations made about products and/or business activities being beneficial for the environment. Non-compliant businesses can face potentially serious penalties!
On August 21, 2024, the Canadian International Trade Tribunal (the “CITT”) issued an Order in Expiry Review RR-2023-005 (the “Order”), continuing its finding of material injury in respect of the dumping and subsidizing of sucker rods originating in or exported from the People’s Republic of China (the “Subject Goods”).
More detail, including the full definition of the Subject Goods, can be found in the Expiry Review.
A Trusted Traveller Program Violation Card is a notification issued by U.S. Customs and Border Protection (CBP) or Canada Border Services Agency (CBSA) when a member of a Trusted Traveller Program (like Global Entry, NEXUS, SENTRI, or TSA PreCheck) is found to have violated the program’s terms and conditions. This notice typically outlines the specific violation and the consequences, which can include suspension or revocation of membership.
Terms & Conditions of NEXUS Membership
Travellers receiving their NEXUS Membership are usually cautioned to obey the conditions of the Membership, although one wonders how many actually do!
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