CALL US TODAY
(416) 864 - 6200
  • Home
  • Tax & Trade Blog

Tax & Trade Blog

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Archives
    Archives Contains a list of blog posts that were created previously.
Recent blog posts

On September 1, 2022, the Select Luxury Items Tax Act (“SLITA”) officially came into effect. Vendors and importers of subject goods should be registered with the Canada Revenue Agency (“CRA”), paying tax, and keeping track of the information they will need to file their first returns.

While we have written about the luxury tax previously, this blog provides further practical details on the implementation of the luxury tax in light of the CRA’s recently-released administrative guidance.

Last modified on
Hits: 183
0

Canada is often viewed as a natural extension of the American direct selling ecosystem: it has a common dominant language, similar culture, convenient land border, and a market of over 38 million people!

While there are many similarities, there are still unique legal and regulatory features that direct selling businesses operating in Canada must be aware of and adapt to — all of which can be easily avoided with the right planning, structuring or advice. This includes the appropriate “Canadianization” of plan documents and overall business strategies.

In the fifth of a 5-part series, we review one of the major risk areas facing the Canadian direct selling industry:

The Employee or Independent Contractor Issue

Last modified on
Hits: 108
0

Canada is often viewed as a natural extension of the American direct selling ecosystem: it has a common dominant language, similar culture, convenient land border, and a market of over 38 million people!

While there are many similarities, there are still unique legal and regulatory features that direct selling businesses operating in Canada must be aware of and adapt to — all of which can be easily avoided with the right planning, structuring or advice. This includes the appropriate “Canadianization” of plan documents and overall business strategies.

In the fourth of a 5-part series, we review one of the major risk areas facing the Canadian direct selling industry:

Individual Rep Licensing Required Locally!

Last modified on
Hits: 76
0

Canada is often viewed as a natural extension of the American direct selling ecosystem:  it has a common dominant language, similar culture, convenient land border, and a market of over 38 million people!

While there are many similarities, there are still unique legal and regulatory features that direct selling businesses operating in Canada must be aware of and adapt to — all of which can be easily avoided with the right planning, structuring or advice.  This includes the appropriate “Canadianization” of plan documents and overall business strategies. 

In the third of a 5-part series, we review one of the major risk areas facing the Canadian direct selling industry:

Understanding CBSA Verifications

Last modified on
Hits: 90
0

Canada is often viewed as a natural extension of the American direct selling ecosystem: it has a common dominant language, similar culture, convenient land border, and a market of over 38 million people!

While there are many similarities, there are still unique legal and regulatory features that direct selling businesses operating in Canada must be aware of and adapt to — all of which can be easily avoided with the right planning, structuring or advice. This includes the appropriate “Canadianization” of plan documents and overall business strategies.

In the second of a 5-part series, we review one of the major risk areas facing the Canadian direct selling industry:

Importing to Canada under “NFR” Structures

Last modified on
Hits: 99
0

Canada is often viewed as a natural extension of the American direct selling ecosystem: it has a common dominant language, similar culture, convenient land border, and a market of over 38 million people!

While there are many similarities, there are still unique legal and regulatory features that direct selling businesses operating in Canada must be aware of and adapt to — all of which can be easily avoided with the right planning, structuring or advice. This includes the appropriate “Canadianization” of plan documents and overall business strategies.

In the first of a 5-part series, we review one of the major risk areas facing the Canadian direct selling industry:

Planning For & Avoiding “Structural Recruitment”

Last modified on
Hits: 133
0

As we have previously discussed, Canada has one of the most protectionist agricultural product sectors in the world, putting import restrictions and incredibly high tariffs on basic groceries like cheese, eggs and poultry  and leading to continuing disputes with countries like the US and New Zealand over this approach.

Even if Canada is forced to change under pressure from its trade partners, tariff rate quotas (“TRQs”) will still remain a fact of life for importers – so it is best to know when and how to apply, and what to expect!

Last modified on
Hits: 139
0

New Part XI.1 to the Employment Standards Act (the “ESA”), titled “Written Policy for Electronic Monitoring”, generally requires employers who had 25 or more employees as of January 1, 2022 to put in place a written policy with respect to electronic monitoring of employees by October 11, 2022, and to share that policy with their employees. The Ontario government indicated that this requirement would “provide transparency for employees with the goal that employers will tailor electronic monitoring to legitimate business purposes”. 

In July 2022, Ontario updated the online Guide to the Employment Standards Act (the “Guide”) to add a new section giving employers basic information on the need for a written policy for electronic monitoring of employees, and provide some relevant examples for employers to consider.

Last modified on
Hits: 212
0

My Nexus Card got Seized!

What are my chances of winning a Nexus Appeal? And when can I reapply?

These are the two most common questions that we get from traveler clients calling or writing us after having their Nexus Cards seized by either the Canada Border Services Agency (“CBSA”) or U.S. Customs and Border Protection (“CBP”) – usually for minor infractions, under the apparently “zero-tolerance” approach that both agencies seem to be applying these days.

The second question usually comes after clients confirm that they can appeal, but that the prospects of winning are not completely certain and legal costs will have to be incurred before the appeal can be properly made.

While we reviewed the basics of the administrative appeals required earlier (i.e., one for Nexus Revocation, and a related appeal for the alleged underlying Customs infraction), here we will look at these two more fundamental questions.

Last modified on
Hits: 130
0

While anti-dumping and subsidy investigations are not uncommon, they do not always result in duties being imposed. As a case in point, the Canada Border Services Agency (the “CBSA”) recently closed its investigation into “Drill Pipes” originating in or exported from China because the Canadian International Trade Tribunal (the “CITT”) did not find injury or a threat of injury.

Last modified on
Hits: 238
0

Tax practitioners are unfortunately well-aware of the sometimes years-long delays when requesting rulings and relief from CRA. What is less understood is the interplay between often overlapping taxpayer relief mechanisms when statutory deadlines are close to expiry, but the desired relief remains ungranted.

The recent Federal Court decision in Ontario Addiction Treatment Centres v. Canada (Attorney General)2022 FC 393  (CanLII) dealt with this issue, and provides a cautionary tale that registrants should consider filing protective ETA 261  rebate claims within the proper legislative timelines while they otherwise wait for relief, otherwise they may find themselves out of time and with no further options.

Last modified on
Hits: 278
0

While New York City’s (in)famous soda ban was ultimately struck down, in the years since other jurisdictions have moved forward with their own schemes to regulate sweetened beverages – now including Newfoundland & Labrador (“NL”).

On September 1, 2022, NL will introduce its so-called “Sugar Sweetened Beverage Tax” (“SSBT”). Interestingly, despite ostensibly being introduced to encourage “better beverage choices”, the tax does not depend on the amount of sugar in the drink – just the amount of drink itself!

Last modified on
Hits: 533
0

On February 24, 2022, the Canada Border Services Agency (the “CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) with respect to the alleged dumping and subsidizing of mattresses originating in or exported from China (the “Subject Goods”).

See our previous blog for more information on the precise definition of the Subject Goods, including exclusions.

While the CBSA Investigation was ongoing, the Canadian International Trade Tribunal (the “CITT”) conducted a separate Preliminary Injury Inquiry, as required under subsection 34(2) of SIMA.

Last modified on
Hits: 229
0

Canada’s federal government recently took the steps necessary to impose significant limits on the manufacture, import and sale of certain single-use plastic goods. While the scope of goods covered by the regulations is relatively limited, importers should be aware of them – and be alerted to the fact that regulation may not stop with these specific goods!

Last modified on
Hits: 174
0

Canada’s rules on vaping products have been undergoing substantial change over the last little while, starting with the 2018 enactment of the Tobacco and Vaping Products Act (“TVPA”). While the TVPA set up a new regulatory framework, the rules have seemingly grown in complexity since, with far-reaching implications for manufacturers, importers, retailers and any other business involved in the vaping industry.

Last modified on
Hits: 180
0

Canada Border Services Agency (“CBSA”) resets it “audit priority areas” twice a year. This sees CBSA designate certain tariff classification codes as priority areas for custom verifications (i.e., ‘audits’), based on the CBSA’s belief that those goods pose significant risks for non-compliance in terms of proper tariff classification, valuation, and country of origin.

CBSA has now released its July 2022 Trade Compliance Verifications, announcing a new priority area, as well as providing updates on a number of ongoing projects, which we have summarized below.

Last modified on
Hits: 185
0

The right to make a customs or Special Import Measures Act (“SIMA”) appeal is very different than the right to make similar income tax or GST appeals.  Unlike income tax or GST, appeals for customs and SIMA cases can ONLY be made once full payment of ALL amounts assessed has been made to the government!

This unfair situation is presenting problems for Canadian commercial importers who want to fight their Canada Border Services Agency (“CBSA”) customs and SIMA assessments but lack the financial ability to do so.   The issue is especially severe in the case of SIMA assessments, where the amounts being levied by CBSA can sometimes exceed two or three times the total value of the imported goods themselves – and add up to 10 or 20 times the profit margin that the importer expected to earn from these import transactions.

Last modified on
Hits: 247
0

Seizures of cash have been increasing in Canada, usually at major airports, where Canada Border Service Agency (CBSA) agents are tasked with policing and enforcing Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “Money Laundering Act” or the “MLA” for short).

Unfortunately, more often than not, the cash seems to be seized from unsuspecting travellers with good intentions, who are not involved in criminal activities but are simply unaware of their legal obligation to declare the proper amounts of cash they are traveling with when crossing international borders.

Last modified on
Hits: 203
0

As we have blogged about several times in the past, homebuilders are frequently in the gunsights of CRA in hopes of capturing potentially unremitted GST/HST on sales made the course of their commercial activity.

A less-explored issue is how CRA sometimes casts too wide a net, and mistakenly assesses unlucky individuals who are not builders, but whose facts may suggest otherwise. The recent case in Wang v. The Queen, 2021 TCC 86 (CanLII) deals with this issue and serves as a cautionary tale for individuals in the unfortunate position of staring down a CRA assessment on the unplanned sale of their new home.

Last modified on
Hits: 192
0

Times are changing for Canadian private corporations in terms of transparency and publicly available information. As of October 1, 2020, private companies in British Columbia have been required to maintain a registry of beneficial owners. Similarly, Québec’s transparency registry statute received Royal Assent on June 8, 2021. The Federal Government has also announced in its 2021 Budget that a publicly accessible beneficial ownership registry would be in place by 2025.

Not to be outdone, Ontario has joined the growing number of Canadian jurisdictions “pulling back the curtain” on private corporations, with plans to impose its own rules for registering beneficial ownership (the “Ontario Rules”). With the Ontario Rules set to come into force on January 1, 2023, the province will likely “leapfrog” the Federal Government.

Last modified on
Hits: 237
0

Toronto Office

24 Duncan Street, Third Floor, Toronto, Ontario, M5V 2B8 Canada
Phone: (416) 864-6200| Fax: (416) 864-6201

Client Login

To access the Millar Kreklewetz LLP secure client file transfer system, please log in.