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Estimated or Net Worth Assessments under Section 299(1) : Troung
Apr 12 2017 - Registrants are required to keep adequate books and records that provide the information necessary to ensure taxes payable under the Excise Tax Act (“ETA”) can be determined. What may happen if a taxpayer has failed to file tax returns, filed patentl...
https://www.taxandtradelaw.com/Tax-Trade-Blog/estimated-or-net-worth-assessments-under-section-299-1-troung.html -
CRA: Medical on-call fees are taxable
Apr 07 2017 - In Excise and GST/HST News No. 101 the CRA clarified that in its view doctors/dentists and other medical practitioners must charge GST/HST on their on-call fees. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-medical-on-call-fees-are-taxable.html -
TCC Expands "Duty of Verification" for ITC Claims
Apr 03 2017 - The recent Tax Court decision in Les Ventes et Façonnage du Papier Reiss Inc. v The Queen (2016 TCC 289) (the “Reiss Case”) places new emphasis on the verification obligations of GST/HST and QST registrants claiming input tax credits (“ITCs”), confir...
https://www.taxandtradelaw.com/Tax-Trade-Blog/tcc-expands-duty-of-verification-for-itc-claims.html -
Changes to the Closely Related Test
Apr 03 2017 - Amendments to the ETA’s closely related test were announced in the 2016 budget and received Royal Assent December 15, 2016. They came into force March 22, 2017. ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/changes-to-the-closely-related-test.html -
CRA Audits Focus on Use of Employment Agencies
Mar 07 2017 - Over the past several years, the CRA Audit Division has directed more attention to businesses that use Employment Agencies for their staffing needs. If your business deals with Employment Agencies, Temporary Labour, Staffing Agencies, or other ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-audits-focus-on-use-of-employment-agencies.html -
A Purposive Interpretation of "Municipal Services"
Mar 06 2017 - The TCC applied fundamental principles of statutory interpretation to conclude that the supply of police services by the Ontario Provincial Police (“OPP”) to the 407 ETR Concession Company Limited (“407 ETR”) constituted an exempt supply of a “munici...
https://www.taxandtradelaw.com/Tax-Trade-Blog/a-purposive-interpretation-of-municipal-services.html -
Wider Use of Refund Holds
Mar 06 2017 - The CRA has a mandate to improve compliance of GST/HST registrants and to encourage GST/HST registrants to meet their filing requirements. As part of its commitment to this mandate, the CRA will be implementing changes to its current processes....
https://www.taxandtradelaw.com/Tax-Trade-Blog/wider-use-of-refund-holds.html -
Alternative Audit Methods May Become More Common
Mar 06 2017 - At the CRA Roundtable at the recent CPA’s 2016 Commodity Tax Symposium, the CRA declared a current mandate to use alternative audit methods more frequently. Two recent cases are a useful reminder of what may be in store for Canadian GST...
https://www.taxandtradelaw.com/Tax-Trade-Blog/alternative-audit-methods-may-become-more-common-1.html -
Director's Liability: The FCA Affirms an Objective Standard for Due Diligence
Feb 22 2017 - The recent FCA decision, Canada v Chriss (2016 FCA 236), underscores the resignation obligations of directors. If directors do not execute their resignations properly and completely, they will remain liable for the actions of the corporation, i...
https://www.taxandtradelaw.com/Tax-Trade-Blog/director-s-liability-the-fca-affirms-an-objective-standard-for-due-diligence.html -
New Clarity on the Meaning of "financial services"
Feb 22 2017 - In The Great-West Life Assurance Company v The Queen (2016 FCA 316) [“Great-West Life”], the Federal Court of Appeal upheld the TCC’s decision that services related to processing claims for drug benefits were not financial services, and so not exempt...
https://www.taxandtradelaw.com/Tax-Trade-Blog/new-clarity-on-the-meaning-of-financial-services.html -
Legal Expenses “In Connection With” Wind Down of Corporation Not Deemed to Have Incurred in Course of Commercial Activity Pursuant to Section 141.1(3): Onenergy
Feb 22 2017 - Section 141.1(3) of the of Excise Tax Act (“ETA”) broadens the scope of what is considered to be in the course of commercial activities to activity done “in connection with” extraordinary transactions such as starting and winding-up commercial activi...
https://www.taxandtradelaw.com/Tax-Trade-Blog/legal-expenses-in-connection-with-wind-down-of-corporation-not-deemed-to-have-incurred-in-course-of-commercial-activity-pursuant-to-section-141-1-3-onenergy.html -
Legislative Inconsistency & the Place of Supply Rules: The Club Intrawest Case
Nov 12 2016 - Section 165 of the ETA imposes GST in respect of supplies “made in Canada”. The so-called “place of supply rules” in section 142 of the ETA serve to deem particular supplies to be made either inside or outside of Canada. As a result of a ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/legislative-inconsistency-the-place-of-supply-rules-the-club-intrawest-case.html -
Discretionary Power & CRA’s Administrative Guidelines
Oct 20 2016 - For years, the CRA has consistently assessed taxpayers for GST/HST and interest in circumstances where although there was technical non-compliance with the rules, there was no true financial impact to the government. Examples of such situations (e.g....
https://www.taxandtradelaw.com/Tax-Trade-Blog/discretionary-power-cra-s-administrative-guidelines.html -
GST/HST on Advertising Barters
Oct 20 2016 - If your business ever provides a good or service in exchange for advertising, you should be aware of a recent CRA ruling (RITS 2015-158946), dated November 4, 2015), which sets out how GST/HST applies to barter transactions and includes an example of...
https://www.taxandtradelaw.com/Tax-Trade-Blog/gst-hst-on-advertising-barters.html -
Section 160: Unexpected Consequences
Oct 20 2016 - Gail Baker v The Queen (2016 TCC 120), illustrates the extent to which s. 160 of the Income Tax Act can apply. The decision shows that a taxpayer’s debts may be imposed on his or her inheritors to the extent of any unpaid tax debts at the time of the...
https://www.taxandtradelaw.com/Tax-Trade-Blog/section-160-unexpected-consequences.html -
Commerical Activity or Hobby?
Oct 04 2016 - Living Friends Case - In Living Friends Tree Farm (2016 TCC 116), the central issue was whether the taxpayer’s expenses in respect to preparation for a Christmas tree farm were incurred in relation to commercial activity. The TCC held for the M...
https://www.taxandtradelaw.com/Tax-Trade-Blog/commerical-activity-of-hobby.html -
Financial Services case pits supplier against recipient
Jul 27 2016 - Whether or not a supply is a financial service is a significant issue for suppliers because suppliers of financial services are unable to claim ITCs for the GST/HST they pay on their inputs. Accordingly, financial service providers scrutinize their o...
https://www.taxandtradelaw.com/Tax-Trade-Blog/financial-services-case-pits-supplier-against-recipient.html -
Admissibility of Accountant’s Statements in Court: the Spears Case
Jul 20 2016 - An out-of-court statement is generally inadmissible as evidence in court to prove the truth of the statement’s contents – this is the general rule against hearsay. There are a number of exceptions to this rule including an admission – where a p...
https://www.taxandtradelaw.com/Tax-Trade-Blog/admissibility-of-accountant-s-statements-in-court-the-spears-case.html -
ITCs and Supplier Nominees: The SNF Case
Jul 19 2016 - There has been significant jurisprudence on the extent to which recipients are entitled to ITCs in respect of GST paid to so called “rogue suppliers” – suppliers who collect but fail to remit GST to the fisc. The CRA has often taken the positio...
https://www.taxandtradelaw.com/Tax-Trade-Blog/itcs-and-supplier-nominees-the-snf-case.html -
CRA Not Entitled to Privileged Documents: Supreme Court of Canada
Jul 15 2016 - The principle of solicitor-client privilege holds that communications between a client and his or her lawyer cannot be compelled to be disclosed without permission of the client. Although this principle started as an evidentiary rule, it ...
https://www.taxandtradelaw.com/Tax-Trade-Blog/cra-not-entitled-to-privileged-documents-supreme-court-of-canada.html