Canadian Anti-Dumping Duties (“ADDs”) apply on a variety of goods from numerous countries and are often set at extremely high rates to protect domestic Canadian producers of like goods.
But what happens when Canadian suppliers cannot provide the products needed to maintain manufacturing operations due to industry shortages, and importers are forced to source from countries subject to ADDs?
Canada’s federal and provincial taxes of “vaping products” is really a vaping duty imposed under the Excise Act, 2001(the “Vaping Duty” and “EA 2001”), and the CRA is in charge of administering that excise duty – Including related audit activities.
CRA appears to be ramping up its audit activity in this area, now issuing proposed and final assessments under the taxing provisions in EA 2001 sections 158.57, 158.58 and 158.61.