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CRA TARGETING ONLINE SALES
Nov 15 2017 - In a previous blog post titled “CRA coming for contractors?” we discussed the recent decision of the Federal Court of Appeal in Rona Inc. v. Canada (Minister of National Revenue), which seemed to suggest that CRA may have a special project ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-targeting-online-sales.html -
CRA NEEDS TO ACT IN “GOOD FAITH” IN PURSUING DIRECTORS
Nov 01 2017 - In Canada, the CRA can often pursue a corporation’s directors for unpaid tax debts of the corporation. But there are certain “pre-conditions” that must be met. One of these, which rarely gets any attention at all is the requirement that “a ce...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-needs-to-act-in-good-faith-in-pursuing-directors.html -
HOW DOES THE GST WORK ON SALES OF USED VEHICLES?
Nov 01 2017 - The Tax Court of Canada (TCC) recently considered how the GST/HST works in situations where individuals and businesses buy and sell used motor vehicles, and the case is instructive. In Brian & Deborah Dewan Enterprises Ltd. v. The Queen (2017 TC...
https://www.taxandtradelaw.com/Tax-Trade-Blog/how-does-the-gst-work-on-sales-of-used-vehicles.html -
CRA COMING FOR CONTRACTORS?
Sep 15 2017 - A recent tax case in the Federal Court of Appeal (FCA) involving the RONA home improvement chain (Rona Inc. v. Canada (Minister of National Revenue) seems to suggest that CRA may have a special project on the go to target Canadian home improveme...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-coming-for-contractors-1.html -
Federal Court of Appeal: Single Consideration Can Still Mean Multiple Supplies!
Sep 13 2017 - In the recent case of Club Intrawest v. Her Majesty the Queen (2017 FCA 151), the Federal Court of Appeal (the "FCA") was faced with a unique fact pattern not contemplated by the legislation. In dealing with this unusual situation, the FCA did what c...
https://www.taxandtradelaw.com/Tax-Trade-Blog/federal-court-of-appeal-single-consideration-can-still-mean-multiple-supplies.html -
Payment of Money Not Exempt Financial Service: The Invesco Decision
Aug 07 2017 - Given that financial services are exempt from GST/HST under Part VII of Schedule V of the Excise Tax Act, the “financial services” definition in section 123(1) is subject of regular litigation before the Tax Court. The definition is structured...
https://www.taxandtradelaw.com/Tax-Trade-Blog/payment-of-money-not-exempt-financial-service-the-invesco-decision.html -
Effective Resignation is Crucial in Defeating Director's Personal Liability for Corporation's Tax Debt
Aug 01 2017 - A director can defeat personal liability for his/her corporation’s tax debt by establishing that the director’s assessment was made more than two years after he/she has ceased to be a director of the corporation (section 325(5) of the Excise Tax Act ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/effective-resignation-is-crucial-in-defeating-director-s-personal-liability-for-corporation-s-tax-debt.html -
GST, Credit Notes & Impecunious Suppliers: The North Shore Power Case
Jul 07 2017 - Most businesses will, at some point, have to deal with a situation where they have made advance payments for goods and services that never end up being provided. The cause for this non-supply is often due to the fact that the supplier has becom...
https://www.taxandtradelaw.com/Tax-Trade-Blog/credit-notes-from-impecunious-suppliers-the-north-shore-power-case.html -
Renovation Arrangement Not Considered Agency Relationship
Jun 16 2017 - The recent Tax Court decision in Persepolis Contracting (2017 TCC 89) is another example of how the concept of agency is so important in the GST context. The case serves as a reminder that written documents will be central to the determination ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/renovation-arrangement-not-considered-agency-relationship.html -
Freight Transportation Services
Apr 13 2017 - The TCC in Andrews (2017 TCC 23) distinguished between transportation services that transport vehicles by towing them and those that transport vehicles by driving them, subjecting only the latter to GST/HST. The TCC thus narrowed freight tran...
https://www.taxandtradelaw.com/Tax-Trade-Blog/freight-transportation-services.html -
Estimated or Net Worth Assessments under Section 299(1) : Troung
Apr 12 2017 - Registrants are required to keep adequate books and records that provide the information necessary to ensure taxes payable under the Excise Tax Act (“ETA”) can be determined. What may happen if a taxpayer has failed to file tax returns, filed patentl...
https://www.taxandtradelaw.com/Tax-Trade-Blog/estimated-or-net-worth-assessments-under-section-299-1-troung.html -
CRA: Medical on-call fees are taxable
Apr 07 2017 - In Excise and GST/HST News No. 101 the CRA clarified that in its view doctors/dentists and other medical practitioners must charge GST/HST on their on-call fees. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-medical-on-call-fees-are-taxable.html -
TCC Expands "Duty of Verification" for ITC Claims
Apr 03 2017 - The recent Tax Court decision in Les Ventes et Façonnage du Papier Reiss Inc. v The Queen (2016 TCC 289) (the “Reiss Case”) places new emphasis on the verification obligations of GST/HST and QST registrants claiming input tax credits (“ITCs”), confir...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tcc-expands-duty-of-verification-for-itc-claims.html -
Changes to the Closely Related Test
Apr 03 2017 - Amendments to the ETA’s closely related test were announced in the 2016 budget and received Royal Assent December 15, 2016. They came into force March 22, 2017. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/changes-to-the-closely-related-test.html -
CRA Audits Focus on Use of Employment Agencies
Mar 07 2017 - Over the past several years, the CRA Audit Division has directed more attention to businesses that use Employment Agencies for their staffing needs. If your business deals with Employment Agencies, Temporary Labour, Staffing Agencies, or other ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-audits-focus-on-use-of-employment-agencies.html -
A Purposive Interpretation of "Municipal Services"
Mar 06 2017 - The TCC applied fundamental principles of statutory interpretation to conclude that the supply of police services by the Ontario Provincial Police (“OPP”) to the 407 ETR Concession Company Limited (“407 ETR”) constituted an exempt supply of a “munici...
https://www.taxandtradelaw.com/Tax-Trade-Blog/a-purposive-interpretation-of-municipal-services.html -
Wider Use of Refund Holds
Mar 06 2017 - The CRA has a mandate to improve compliance of GST/HST registrants and to encourage GST/HST registrants to meet their filing requirements. As part of its commitment to this mandate, the CRA will be implementing changes to its current processes....
https://www.taxandtradelaw.com/Tax-Trade-Blog/wider-use-of-refund-holds.html -
Alternative Audit Methods May Become More Common
Mar 06 2017 - At the CRA Roundtable at the recent CPA’s 2016 Commodity Tax Symposium, the CRA declared a current mandate to use alternative audit methods more frequently. Two recent cases are a useful reminder of what may be in store for Canadian GST...
https://www.taxandtradelaw.com/Tax-Trade-Blog/alternative-audit-methods-may-become-more-common-1.html -
Director's Liability: The FCA Affirms an Objective Standard for Due Diligence
Feb 22 2017 - The recent FCA decision, Canada v Chriss (2016 FCA 236), underscores the resignation obligations of directors. If directors do not execute their resignations properly and completely, they will remain liable for the actions of the corporation, i...
https://www.taxandtradelaw.com/Tax-Trade-Blog/director-s-liability-the-fca-affirms-an-objective-standard-for-due-diligence.html -
New Clarity on the Meaning of "financial services"
Feb 22 2017 - In The Great-West Life Assurance Company v The Queen (2016 FCA 316) [“Great-West Life”], the Federal Court of Appeal upheld the TCC’s decision that services related to processing claims for drug benefits were not financial services, and so not exempt...
https://www.taxandtradelaw.com/Tax-Trade-Blog/new-clarity-on-the-meaning-of-financial-services.html