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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 -
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