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Claiming Input Tax Credits on GST Paid at the Border
Jan 15 2018 - Whenever a person imports commercial goods into Canada they are required to pay the GST at the border at the time of importation pursuant to Division III of Part IX of the Excise Tax Act (the “ETA”). This GST rate is currently set at 5%.&...
https://www.taxandtradelaw.com/Tax-Trade-Blog/claiming-input-tax-credits-on-gst-paid-at-the-border.html -
Tax Lawyers Required In Tax Court General Procedure Appeals
Dec 25 2017 - In Masa Sushi Japanese Restaurant Inc. v. The Queen, 2017 TCC 239 (“Masa Sushi”), the Tax Court of Canada (“TCC”) confirmed that lawyers are the only representatives that are authorized to represent tax appellants in court under General Procedure tax...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tax-lawyers-required-in-tax-court-general-procedure-appeals.html -
Criminal Tax Evasion Findings Impact Tax Court Appeals
Dec 22 2017 - If the CRA believes that taxpayers have knowingly failed to report income or remit GST and other taxes owing they will often bring concurrent criminal tax evasion charges in addition to simply re-assessing a taxpayer. In this scenario, the protection...
https://www.taxandtradelaw.com/Tax-Trade-Blog/criminal-tax-evasion-findings-impact-tax-court-appeals.html -
CONTRACT SILENT? GST/HST IS STILL LIKELY PAYABLE!
Dec 22 2017 - Subsection 223(1)of the Excise Tax Act (ETA) requires registrants to disclose sufficient information to their customers in respect of their customers’ GST/HST liabilities by indicating on any invoices/receipts issued to customers the net-of-ta...
https://www.taxandtradelaw.com/Tax-Trade-Blog/contract-silent-gst-hst-is-still-likely-payable.html -
Suppliers Can Sue Recipients for GST/HST Payable
Dec 20 2017 - Section 224 of the Excise Tax Act (ETA) allows a supplier who has remitted GST/HST collectible from, but as yet unpaid by, a recipient, to sue the recipient for the tax remitted as if it were a debt owed to the supplier. There has been little...
https://www.taxandtradelaw.com/Tax-Trade-Blog/suppliers-can-sue-recipients-for-gst-hst-payable.html -
Tax Obligations Can Remain After GST/HST Number Cancellation
Dec 15 2017 - A taxpayer who ceases to be GST/HST registrant can be hit with a hefty tax bill due to subsection 171(3) of the Excise Tax Act (the “ETA”), which in effect triggers a deemed disposition, which with other provisions in the ETA, forces the person cea...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tax-obligations-can-remain-after-gst-hst-number-cancellation.html -
BEWARE OF CRA ADMINISTRATIVE POLICIES/ DIRECTIVES!
Dec 15 2017 - It is not uncommon for the CRA to issue administrative policies or directives that provide CRA auditors and the public with direction on how the Excise Tax Act (ETA) or Income Tax Act (ITA) should be applied to certain industries/situations. While pe...
https://www.taxandtradelaw.com/Tax-Trade-Blog/beware-of-cra-administrative-policies-directives.html -
Is It Worth Appealing My Tax Assessment?
Dec 13 2017 - In Canada, legal costs are generally awarded to the successful litigant in a tax appeal (or in most civil cases for that matter) based on actual costs incurred, but are often a mere fraction of the actual costs that a litigant has incurred. As such, ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/is-it-worth-appealing-my-tax-assessment-1.html -
DIRECTORS CAN REMAIN LIABLE FOR TAX DEBTS AFTER RESIGNATION
Dec 11 2017 - Under section 323 of the Excise Tax Act (“ETA”), directors of a corporation are personally liable for a corporation’s unremitted GST/HST. There is no definition of “director” in the ETA, but section 323 has been found to apply to individuals who are ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/directors-can-remain-liable-for-tax-debts-after-resignation.html -
SECURED CREDITORS CAN BE HELD LIABLE FOR A DEBTORS TAX DEBTS
Dec 01 2017 - After the recent decision of the Federal Court of Appeal (“FCA”) in Canada v. Callidus Capital Corporation, 2017 FCA 162 (“Callidus”), any secured creditors dealing with debtors that also have CRA issues, should immediately seek professional advice a...
https://www.taxandtradelaw.com/Tax-Trade-Blog/secured-creditors-can-be-held-liable-for-a-debtors-tax-debts-1-2.html -
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