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Claiming ITCs Before or After Making of Taxable Supplies
Jan 09 2019 - Subsection 141.01(2) of the Excise Tax Act (“ETA”) deems a property or service acquired for use in a business to be for use in commercial activities only to the extent that it is used in the making of taxable or zero-rated supplies. On the other hand...
https://www.taxandtradelaw.com/Tax-Trade-Blog/claiming-itcs-before-or-after-making-of-taxable-supplies.html -
National GST/HST Project on Staffing Agencies?
Jan 03 2019 - Recent experience suggests that the CRA may have an ongoing project (internal code for either tax evasion special investigations, or civil auditing of possible sham transactions – or both) in the Staffing Agency context. While the following example ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/national-gst-hst-project-on-staffing-agencies.html -
ONCA: Late Invoice Satisfied Tax Disclosure Obligations
Dec 28 2018 - Section 223(1) of the Excise Tax Act (“ETA”) requires a registered supplier to indicate clearly on its receipt or invoice to a purchaser/recipient of supply the consideration paid or payable by the purchaser and the GST/HST payable in respect of the ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/onca-late-invoice-satisfied-tax-disclosure-obligations.html -
Bare Trusts Are Not Always A Non-Entity For ETA Purposes
Dec 18 2018 - A New Housing Rebate (“NHR”) is available under ss. 254(2) of the Excise Tax Act (“ETA”) to enable those who qualify to obtain a rebate of GST/HST paid on the purchase of a new residential property. To qualify para. 254(2)(b) says a “particular indiv...
https://www.taxandtradelaw.com/Tax-Trade-Blog/bare-trusts-are-not-always-a-non-entity-for-eta-purposes.html -
Canadian Energy Traders & GST/HST Collection Obligations
Dec 14 2018 - Canadian energy traders often misunderstand their tax collection obligations for the GST/HST and other sales taxes. The issue may relate to a 2014 administrative decision by the CRA to begin to take a very restrictive approach to the application of ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/canadian-energy-traders-gst-hst-collection-obligations.html -
Ontario Continues to Audit Tobacco Wholesalers
Dec 11 2018 - The Ontario Ministry of Finance continues to turn the Ontario tobacco industry upside down – continuing to assess companies for failure to collect the Ontario Provincial Tobacco Tax (PTT) on sales of cigars and other non-cigarette tobacco (loose toba...
https://www.taxandtradelaw.com/Tax-Trade-Blog/ontario-continues-to-audit-tobacco-wholesalers.html -
Don’t Forget About GST When Resolving Legal Disputes
Dec 06 2018 - Section 182 of the Excise Tax Act (“ETA”) generally deems any payment made to a registrant as a consequence of a breach, modification, or cancellation of an agreement (other than as consideration for a supply), to be a taxable supply. This rule, in e...
https://www.taxandtradelaw.com/Tax-Trade-Blog/don-t-forget-about-gst-when-resolving-legal-disputes.html -
TCC Complicates Tax Status of Credit Card/Payment Processing
Oct 25 2018 - The Canadian government has chosen to make many financial services tax exempt under the Excise Tax Act (“ETA”). In particular, under the definition of “financial service” in ss. 123(1) of the ETA, a service is an exempt financial service where it is ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tcc-complicates-tax-status-of-credit-card-payment-processing.html -
Determining Place of Supply When A Contract Is Silent
Jun 21 2018 - Section 165 of the Excise Tax Act imposes GST/HST on taxable supplies "made in Canada". A supply is deemed to be made in Canada if “delivered or made available” to the supply’s recipient in Canada (para. 142(1)(a)), but deemed to be made outside Cana...
https://www.taxandtradelaw.com/Tax-Trade-Blog/determining-place-of-supply-when-a-contract-is-silent.html -
Broker’s Activity re Business Sale Not Exempt “Arranging For” Service
Jun 08 2018 - The term "arranging for", which is not statutory defined, is generally interpreted to include activities performed by financial intermediaries such as agents, brokers and dealers in financial instruments. If it is determined that an intermediary is p...
https://www.taxandtradelaw.com/Tax-Trade-Blog/brokers-activity-re-business-sale-not-exempt-arranging-for-service.html -
Alternative Assessment Methods Are Powerful CRA Tools
May 16 2018 - Under section 230 of the Income Tax Act (“ITA”) and section 286 of the Excise Tax Act (“ETA”) all taxpayers must keep records that are adequate to determine the amount of taxes owing. When these sections are complied with and a taxpayer maintains ade...
https://www.taxandtradelaw.com/Tax-Trade-Blog/alternative-assessment-methods-are-powerful-cra-tools.html -
“Suspicious Conduct” Not Enough for Tax Evasion
Feb 12 2018 - When a corporation finds itself in the midst of huge potential tax liability, that is often not the end of the story for the various parties involved. Directors may find themselves pursued for civil director’s liability for any taxes, interest or pen...
https://www.taxandtradelaw.com/Tax-Trade-Blog/suspicious-conduct-not-enough-for-tax-evasion.html -
TCP Analysis Alive and Well in GST/HST Cases
Feb 12 2018 - In Canada, most financial services are exempt from tax under the Excise Tax Act (“ETA”). This means that financial institutions cannot charge GST/HST and cannot claim input tax credits (“ITCs”) to recover the GST/HST that they have paid to provide th...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tcp-analysis-alive-and-well-in-gst-hst-cases.html -
Taxation Uncertainty Disrupting Corporate Travel Plans
Feb 09 2018 - When an aircraft that is owned by a corporation primarily for business purposes is used by an employee or shareholder for personal purposes, the resulting benefit is taxable and must be included in computing the income of the employee or shareholder....
https://www.taxandtradelaw.com/Tax-Trade-Blog/taxation-uncertainty-disrupting-corporate-travel-plans.html -
CRA Auditors Focussing on Employment Agencies
Feb 07 2018 - Over the past several years, the CRA Audit Division has directed more attention to businesses that use Employment Agencies for their staffing needs. We understand that many businesses dealing with Employment Agencies, Temporary Labour, Staffing Agenc...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-auditors-focussing-on-employment-agencies.html -
Extensions To Tax Appeal Deadlines Should Be Sought ASAP
Feb 07 2018 - Given the tight tax timelines under the Income Tax Act (“ITA”) and the Excise Tax Act (“ETA”), it is not uncommon for tax appeal deadlines to be inadvertently missed. While it is possible to obtain an extension under certain circumstances, there are ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/extensions-to-tax-appeal-deadlines-should-be-sought-asap.html -
Have You Missed Your Tax Appeal Deadline?
Feb 02 2018 - Given the tight timelines under the Excise Tax Act (“ETA”) it is not uncommon for tax appeal deadlines to seemingly come and go. Fortunately, sometimes even when it appears that a deadline has been missed an extension may be granted or it may not hav...
https://www.taxandtradelaw.com/Tax-Trade-Blog/have-you-missed-your-tax-appeal-deadline.html -
CRA Releases Guidelines for New GST Voluntary Disclosures
Jan 31 2018 - On December 13, 2017, the CRA released GST/HST Memorandum 16-5 outlining its new GST/HST Voluntary Disclosure Program (“GST/HST VDP”) (IC00-1R6, Voluntary Disclosures Program which was released around that same time outlines the new Income Tax VDP). ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-releases-guidelines-for-new-gst-voluntary-disclosures.html -
Can My Assets Be Seized For Tax Evasion?
Jan 31 2018 - In a recent blog titled “Can I go to jail for tax evasion”, we discussed how the CRA has been increasingly seeking jail time for people engaged in tax fraud or tax evasion. In fact, relatively recently a Toronto man was sentenced to five years in jai...
https://www.taxandtradelaw.com/Tax-Trade-Blog/can-my-assets-be-seized-for-tax-evasion.html -
Understanding Customs - Mandatory Correction Obligations
Jan 15 2018 - With all of the concerns that businesses engaged in the import/export of products in the United States and Canada face (increased global competition, currency fluctuations and product quality), one of the least considered but most important involves ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/understanding-customs-mandatory-correction-obligations.html