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More GST Sham Audits of Telco Businesses
May 31 2023 - As we blogged about here, here and here, CRA continues to audit telecommunications businesses for possible sham and carousel transactions (i.e., GST fraud). The alleged fraudulent activities come in many forms, and one auditing efforts seems focusse...
https://www.taxandtradelaw.com/Tax-Trade-Blog/more-gst-sham-audits-of-telco-businesses.html -
CBSA Updates Appeal Process Memo
Apr 06 2023 - If you disagree with a decision made by the Canada Border Services Agency (CBSA) regarding imported goods, you may have the right to administratively appeal the decision under section 60 of the Customs Act. Recently, key CBSA administrative materials...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cbsa-updates-appeal-process-memo.html -
CRA coming for Uber Side Hustles
Mar 29 2023 - An oft-overlooked component of Canada’s Excise Tax Act (“ETA”) involves the special registration rules which apply to taxi businesses – in place well before the advent of ride-sharing services like Uber and Lyft. CRA has recently updated its adminis...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-coming-for-uber-side-hustles.html -
Customs & SIMA Appeals Are Pay-to-Play!
Mar 06 2023 - 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 paymen...
https://www.taxandtradelaw.com/Tax-Trade-Blog/customs-sima-appeals-are-pay-to-play.html -
Optional Sales Tax Rules for Direct Sellers
Feb 09 2023 - The direct selling industry poses a number of unique challenges for Canadian sales tax regimes. The patchwork of separate federal GST/HST and provincial PST/QST regimes only further complicates the matter, making it difficult for new entrants to the ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/optional-sales-tax-rules-for-direct-sellers.html -
Text-Focused Approach Endorsed By SCC
Dec 12 2022 - Whether a supply is taxable under the Excise Tax Act (“ETA”) can depend, in part, on how that supply is characterized. In normal commercial relations, businesses will often bundle many diverse services together – including both taxable and exemp...
https://www.taxandtradelaw.com/Tax-Trade-Blog/text-focused-approach-endorsed-by-scc.html -
CRA Targeting Housing Industry!
Dec 09 2022 - 2023 is shaping up to be quite a year for businesses operating in the real estate industry, with the Canada Revenue Agency (“CRA”) continuing aggressive industry audits (which have now made their way to court), and new tax rules for new housing assig...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-targeting-housing-industry.html -
Most Important GST Case of the Decade?
Dec 09 2022 - Since the inception of the GST/HST in 1991, the Canada Revenue Agency (“CRA”) has taken what we consider to be a strict approach to the documentary/information requirements under section 169(4) of the Excise Tax Act (“ETA”), which must be met in orde...
https://www.taxandtradelaw.com/Tax-Trade-Blog/most-important-gst-case-of-the-decade.html -
CRA Policies: Risky to Rely On!
Nov 30 2022 - The effect of the Canada Revenue Agency’s (“CRA”) administrative policies on GST/HST audits is often misunderstood by taxpayers and CRA auditors alike. While policies carry some interpretive value, they do not supplant actual law in the form of legis...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-policies-risky-to-rely-on.html -
Big Problems Amending GST Returns!
Oct 28 2022 - We have recently seen many clients make improper “corrections” or “amendments” to previously-filed GST Returns, which ultimately causes even more problems, and leads to unrecoverable GST! In fact, there is no legislative basis for filing a corrected...
https://www.taxandtradelaw.com/Tax-Trade-Blog/big-problems-amending-gst-returns.html -
CRA Sham Investigations Target Telcos
Oct 24 2022 - As we blogged about here and here, CRA has recently focused its audit powers to investigate allegations of shams (i.e., fraud) in the application of GST in the telecommunications industry. The alleged fraudulent activities come in many forms and can...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-sham-investigations-target-telcos.html -
A Cautionary Tale: Objection Extensions
Oct 24 2022 - Tax professionals are well aware of how critical it is to file Notices of Objection on time — generally within 90 days of the mailing of a Notice of Assessment. For professionals and taxpayers who find themselves unable to have met this deadline, sec...
https://www.taxandtradelaw.com/Tax-Trade-Blog/a-cautionary-tale-objection-extensions.html -
No Privilege for Tax Accountants!
Oct 24 2022 - Lawyer-client relationships enjoy what is commonly referred to as solicitor-client privilege – or lawyer-client privilege. Regrettably (and surprisingly to some), accountants do not have this protection! As the recent Federal Court of Appeal (“FCA”...
https://www.taxandtradelaw.com/Tax-Trade-Blog/no-accounting-tax-confidentiality.html -
CBSA Initiates Re-Investigation re: Concrete Rebar (RB1)
Oct 05 2022 - On September 8, 2022, the Canada Border Services Agency (“CBSA”) issued a notice that it would be conducting a re-investigation in respect of certain concrete rebar originating in or exported from Turkey (RB1). Responses to the CBSA’s Request for Inf...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cbsa-initiates-re-investigation-re-concrete-rebar-rb1.html -
New PST Rules for BC Online Marketplaces
Sep 30 2022 - British Columbia’s (“BC’s”) new PST rules regarding online marketplaces have been in effect for about three months now. First announced in the 2022 provincial budget, the provincial government claims the changes will close tax loopholes and “better a...
https://www.taxandtradelaw.com/Tax-Trade-Blog/new-pst-rules-for-bc-online-marketplaces.html -
Luxury Tax Update – How SLITA Works in Practice
Sep 14 2022 - 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 the...
https://www.taxandtradelaw.com/Tax-Trade-Blog/luxury-tax-update-how-slita-works-in-practice.html -
Does the CRA consider you to be a commercial builder? Maybe!
Jul 07 2022 - 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 CR...
https://www.taxandtradelaw.com/Tax-Trade-Blog/does-the-cra-consider-you-to-be-a-commercial-builder-maybe.html -
Carousel Schemes: Don't Let CRA Take You for a Ride!
May 25 2022 - It seems that the only thing hotter than inflation these days is CRA’s auditing and assessments in missing traders, carousel schemes and shams. Affected industries so far include telecom, gold and precious metals, diamonds and precious gems – and eve...
https://www.taxandtradelaw.com/Tax-Trade-Blog/carousel-schemes-dont-let-cra-take-you-for-a-ride.html -
US "First Sale"? Not in Canada! (& Other Issues Back in Vogue)
May 20 2022 - The primary customs valuation method across the Western world is “transaction value”, which is a way of valuing goods coming across international borders. Transaction value is used by both the US Customs and Border Protection Agency (CBP) and the Can...
https://www.taxandtradelaw.com/Tax-Trade-Blog/us-first-sale-not-in-canada-other-issues-back-in-vogue.html -
Draft Luxury Tax Legislation Released!
Apr 11 2022 - After our February blog post, the Department of Finance finally released draft legislation for its “luxury tax” on vehicles, aircraft and vessels (“items”). Assuming it is passed, the Select Luxury Items Tax Act (“SLITA”) is scheduled to come into fo...
https://www.taxandtradelaw.com/Tax-Trade-Blog/draft-luxury-tax-legislation-released.html