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Very Bad News Coming for House Flippers!
Jul 12 2021 - In a prior Blog on the “Time Bomb Ticking on Canadian Home Construction Industry” we discussed the problems facing Canadians who make money buying, fixing up, and reselling their alleged “principal residences”. We said then: “An individual buyin...
https://www.taxandtradelaw.com/Tax-Trade-Blog/very-bad-news-coming-for-house-flippers.html -
New CRA Powers for Oral Interviews of Taxpayer Employees?
Jul 09 2021 - The Canada Revenue Agency (“CRA”) has broad audit powers, allowing it to request any documents, records, and information from taxpayers and third parties under audit. The 2021 Federal Budget proposed an expansion (!) to these powers – allowing CRA to...
https://www.taxandtradelaw.com/Tax-Trade-Blog/new-cra-powers-for-oral-interviews-of-taxpayer-employees.html -
Changes to ITC Information Requirements
Jun 10 2021 - In Budget 2021 the government of Canada proposed changes to the ITC Information Requirements which will generally make it easier for businesses to claim ITCs in two ways: increasing the dollar thresholds of the ITC Information Requirements; and e...
https://www.taxandtradelaw.com/Tax-Trade-Blog/changes-to-itc-information-requirements.html -
GST Changes Incoming for Short-Term Rental Accommodations!
Apr 08 2021 - Per our previous blog, the Government of Canada’s Fall Economic Update has announced new rules which will change the GST/HST registration and collection regime for short-term rental accommodation platforms (like AirBnb) and the underlying persons off...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-changes-incoming-for-short-term-rental-accommodations.html -
GST Changes Incoming for Businesses using Fulfillment Centres!
Apr 08 2021 - Per our previous blog, the Government of Canada’s Fall Economic Update has announced new rules which will change the registration and collection regime for fulfillment warehouses (like Amazon) to ensure that vendors collect GST/HST on the final price...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-changes-incoming-for-businesses-using-fulfillment-centres.html -
FCA: Credit Card/Payment Processing Services Are Exempt
Mar 03 2021 - We previously blogged about a Tax Court of Canada (TCC) case on the tax status of credit card/payment processing services provided by Visa. In that case, the TCC held that Visa’s services constituted the supply of “administrative services” and were t...
https://www.taxandtradelaw.com/Tax-Trade-Blog/fca-credit-card-payment-processing-services-are-exempt.html -
Shams in the Telecommunications Industry
Jan 27 2021 - The determination of whether a transaction is a ‘sham’ has been a longstanding issue in tax law, but one that has seemingly been the focus of a number of CRA projects across a number of different industries, including a current project in the interna...
https://www.taxandtradelaw.com/Tax-Trade-Blog/shams-in-the-telecommunications-industry.html -
GST Update: Major Changes Incoming for Non-Resident Businesses
Dec 02 2020 - On Monday, November 30, 2020, the Government of Canada delivered its Fall Economic Update, entitled Supporting Canadians and Fighting COVID-19. As reported in the National Post, the Update will be particularly noteworthy for online businesses selling...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-update-major-changes-incoming-for-non-resident-businesses.html -
GST/HST Exempt Sales to First Nations Persons
Nov 23 2020 - When it comes to the payment on taxes for goods sold on-reserve, Canadian First Nations Persons enjoy a special tax status. Section 87 of the federal Indian Act provides that First Nations persons are not liable to taxation in respect of their ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-hst-exempt-sales-to-first-nations-persons.html -
TCC Found CanLII’s Supply of Virtual Library Taxable
Nov 20 2020 - When a supplier pays GSTH/HST on a property or service acquired for consumption, use or supply in the course of commercial activities, the supplier is entitled to claim an input tax credit (“ITC”) equal to the tax paid on expenses incurred: see...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tcc-found-canlii-s-supply-of-virtual-library-taxable.html -
Carousel Schemes & Scrap Gold
Oct 02 2020 - One of the CRA’s latest projects appears to involve the scrap gold and telecommunications industries, which has been the subject of a number of recent CRA audits, culminating in a number of legal challenges in various contexts. In the May 2020 case ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/carousel-schemes-scrap-gold.html -
GST Director’s Liability For Unreported Income
Sep 28 2020 - Unreported income discovered by the CRA may lead to consequences on the GST/HST component related to that income which, in turn, can sometimes result in personal liability to the director. This situation arose in the recent case of Duque v. Canada, ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-director-s-liability-for-unreported-income.html -
Directors: Your Spouses & Children Can be Assessed!
Sep 21 2020 - As the world struggles with COVID-19, and small and medium businesses endure the worldwide economic slowdown, directors of Canadian corporations need to know about the long arm of the CRA when it comes to ensuring that GST net tax obligations and ITA...
https://www.taxandtradelaw.com/Tax-Trade-Blog/directors-your-spouses-children-can-be-assessed.html -
COVID-19: Implications on GST/HST and Real Estate
Sep 21 2020 - Many will remember the almost hysteric approach that some professional advisors took to “Y2K” (e.g., the one conference topic that burned deep into my brain was “The Commodity Tax Implications of Y2K”) – which ultimately proved to be either entirely ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/covid-19-implications-on-gst-hst-and-real-estate.html -
GST/HST and Value for Duty on Cross-Border Transactions
Aug 04 2020 - In the current global business environment, increasingly many US companies are selling their goods into Canada, and using a variety of business structures to do so. However, many companies continue to struggle with their tax and customs obligat...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-hst-and-value-for-duty-on-cross-border-transactions.html -
CRA Resuming Audits!
Jun 11 2020 - Last March 18th, the CRA announced the suspension of the vast majority of audit activities as a result of the COVID-19 pandemic. How quickly things change! ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-resuming-audits.html -
A Complete Victory for CRA in Data-Mining Cases!
Jun 10 2020 - As we blogged about here and here, the CRA has an often forgotten power to issue ‘Requirements for Information’ (“RFIs”) on third parties which can be used to compel them to hand over evidence in their possession to the CRA to be used to determine if...
https://www.taxandtradelaw.com/Tax-Trade-Blog/a-complete-victory-for-cra-in-data-mining-cases.html -
CITT: “Real” Importer Must have Ties to Commercial Transaction
Jun 10 2020 - Importers of goods have both current and ongoing responsibility and obligations under the Customs Act (the “Act”) and its Regulations. On a “current” basis (i.e., at time of importation), include reporting the goods for import, and proper declaration...
https://www.taxandtradelaw.com/Tax-Trade-Blog/citt-real-importer-must-have-ties-to-commercial-transaction.html -
Bad News for Directors: FCA Overturns TCC in Colitto
Apr 28 2020 - The recent decision in Canada v. Colitto (2020 FCA 70) has seen the FCA weigh in on a huge issue for so called “derivative assessment” of directors and other person potentially at risk for a corporate taxpayer’s tax liability. With the financial...
https://www.taxandtradelaw.com/Tax-Trade-Blog/bad-news-for-directors-fca-overturns-tcc-in-colitto.html -
Agency Agreement Implied by Conduct of Parties
Apr 02 2020 - A recent case highlights the fact that at law, an agency agreement can be implied to exist based on the conduct of the parties alone – without any explicit written or verbal references to “agency”. This is often referred to as an “Implied Agenc...
https://www.taxandtradelaw.com/Tax-Trade-Blog/agency-agreement-implied-by-conduct-of-parties.html