Tax & Trade Blog

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REGISTERED BUT NOT REGISTERED!

CRA BUSINESS NUMBER TRAP: ACCOUNTS ASSIGNED DURING AUDIT NOT ENOUGH

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When the Canada Revenue Agency ("CRA") assesses an individual for unremitted GST/HST on a real property transaction, the agency typically creates an administrative business number to process the assessment. Many taxpayers assume that once the CRA opens this account and assesses tax, the taxpayer is officially GST "registered" and entitled to claim offsetting Input Tax Credits ("ITCs") on related expenses, for example real estate commissions.

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DEALING IN UNMARKED TOBACCO: BIG PROBLEM

AT SAME TIME, ONTARIO ALSO RAMPING UP SEIZURES OF SHISHA PRODUCTS

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In our Indirect Tax Practice, we are seeing a huge increase in Ontario Ministry of Finance (“MOF”) inspections and seizures of unmarked or untaxed tobacco, including fine cut and/or loose tobacco products like Shisha (hookah tobacco), where the quantities suggest resale.

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SANCTIONS “DEEMED OWNERSHIP”

UNDER CANADA’S NEW RULES, NAME SCREENING ALONE NOW OBSOLETE?

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For years, many people have attempted to comply with Canada's sanctions rules by simply "name screening". New guidance from Global Affairs Canada ("GAC") may have made that approach obsolete, refocusing compliance on "deemed ownership", including aggregated ownership, board control rights and de facto control (e.g., through contracts and proxies).

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NO EXCUSE FOR MISSED CRA PORTAL ALERTS

TCC CONFIRMS BUSINESS CARRIES ALL THE RISK WHEN DIGITAL PORTALS IGNORED

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A recent Tax Court of Canada (“TCC”) case highlights the harsh consequences of failing to monitor an online Canada Revenue Agency (“CRA”) portal, like MyCRA or My Business Account. In Web Listings Inc. v. His Majesty the King, 2026 TCC 101 (“Web Listings”), the TCC confirmed that if a business’s authorized representative receives online portal notifications and ignores them, the tax consequences for the business are severe.

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CRA ASSESSING DIRECTORS FOR GST MORE OFTEN

SIMILAR SURGE IN ASSESSING THIRD-PARTY TRANSFEREES, INCLUDING SHAREHOLDERS

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Most business owners assume a corporation’s debts belong to the corporation. For unpaid GST/HST, that assumption is often wrong.

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IMPORTING ALUMINUM TO CANADA?

GAC PERMIT REQUIREMENTS: MORE THAN MEETS THE EYE

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In a major development for importers of aluminum products, Canada is strengthening reporting requirements for aluminum imports under General Import Permit No. 83 (“GIP 83”) via a recently published Notice to Importers (the “Notice”).

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PRELIMINARY DETERMINATION: WHEAT GLUTEN

CBSA IMPOSES PROVISIONAL DUTIES ON WHEAT GLUTEN FROM ITALY, POLAND & UK

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On September 17, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping and subsidizing in respect of wheat gluten originating in or exported from Italy, Poland, and the United Kingdom (the “Subject Goods”). Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after September 17, 2026.

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EXPIRY REVIEW: SMALL POWER TRANSFORMERS

CITT TO REVIEW ANTI-DUMPING DUTIES ON CERTAIN SMALL POWER TRANSFORMERS

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On October 1, 2026, the Canadian International Trade Tribunal (“CITT”) announced that it is starting its expiry review (“Review”) on the dumping and subsidizing of certain small power transformers from Chinese Taipei, and South Korea. The CITT will use its Review to determine whether existing trade protections – in place since 2021 – will continue for another five years or be allowed to expire.

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复审台湾和韩国进口的小型电力变压器的关税

有意参与者得在10月16日提交通知书

请点击此处下载本文的PDF版本

EXPIRY REVIEW: SMALL POWER TRANSFORMERS

CITT TO REVIEW ANTI-DUMPING DUTIES ON CERTAIN SMALL POWER TRANSFORMERS

For the English Version of this Report, please click here.

2026年10月1日，加拿大国际贸易法庭（“CITT”）宣布启动对来自中国台湾和韩国的某些小型电力变压器反倾销和反补贴措施的到期复审（“复审”）。CITT将通过此次复审，决定从2021年起实施的贸易保护措施是否需再延长五年，或让它到期失效。

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HOUSE FLIPPING & BRIEF OCCUPANCY

TCC FINDS TWO RENOVATED HOMES HELD AS INVENTORY – NOT RESIDENCES

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As we have noted before (here and here), the Canada Revenue Agency (“CRA”) continues to audit residential homeowners who build or substantially renovate homes for resale, regularly assessing them as “builders” liable to pay GST/HST.

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HOUSE FLIPPING & SALES HISTORY

TCC FINDS HOUSE HELD AS INVENTORY DESPITE OCCUPANCY

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As we blogged about here, the CRA continues to pursue homeowners and builders who buy, renovate or construct, and resell residential properties, often finding them liable to collect and remit GST/HST as “builders” under the Excise Tax Act (“ETA”).

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MYCRA LOCKOUTS HAVE REAL TAX COSTS

MINOR COURT WIN FOR TAXPAYERS WITH PORTAL ISSUES – BUT LITTLE REAL RELIEF

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A recent Federal Court (“FC”) case is a minor win for taxpayers who have struggled with the buggy, confusing mess that is the MyCRA web portal (“MyCRA”) run by Canada Revenue Agency (“CRA”). It also brings to light how serious MyCRA access issues can become.

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BONDED WAREHOUSES DO NOT STOP TRQ CLOCK

CBSA: STEEL IMPORTERS NEED UPFRONT QUOTA BEFORE IMPORT!

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We have previously written about Canada’s Steel Tariff Rate Quota (“TRQ”) regime here and here. For Canadian importers of steel into Canada, not originating from either the US or Mexico, the name of the game has recently been to ensure that all imports fall within Canada’s applicable TRQ regime.

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MISSED A GST/HST REBATE DEADLINE?

TCC SAYS SUBSECTION 296(2.1) MAY NOT SAVE LATE GST/HST REBATE CLAIMS

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Taxpayers who fail to file a GST/HST rebate application within the applicable two-year limitation period may, in some circumstances, look to the relieving provisions in subsection 296(2.1) of the Excise Tax Act (“ETA”) for assistance. That provision seemed to require an otherwise unclaimed (or statute-barred) GST/HST rebate to be applied against a taxpayer’s net tax if the period was later audited.

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FCA OVERTURNS CITT IN MEDLINE

FCA RESTORES NARROW “FOR USE IN” TEST FOR CHAPTER 99 RELIEF

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Importers seeking duty relief under Chapter 99 of the Customs Tariff often need to establish that imported goods are “for use in” other qualifying goods or activities. In Canada (Attorney General) v. Medline Canada Corporation, 2026 FCA 74 (“Medline Canada”), the Federal Court of Appeal (“FCA”) clarified that this phrase requires more than goods being used together in a practical or commercial sense with limited or no physical connection — overturning a prior Canadian International Trade Tribunal ("CITT”) decision.

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NOTICE OF ASSESSMENT NOT RECEIVED. CAN I APPEAL?

TAX COURT SETS FOUR-STEP PROCESS FOR GETTING NOTICES OF OBJECTION BACK ON TRACK

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When it comes to filing a Notice of Objection (an “Objection”) in respect of a Notice of Assessment (an “NOA”) for GST/HST or income tax matters – or many other matters involving federal taxes – most taxpayers will know that they generally have a 90-day window to file that Objection.

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TARIFF CLASSIFICATION & BILINGUAL INTERPRETATION

CITT CONFIRMS THE NARROWER SHARED MEANING MAY DETERMINE THE RESULT

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Tariff classification is the process of identifying and categorizing goods imported into Canada under the applicable tariff provisions. It determines the applicable rate of customs duty and, in turn, how much duty an importer must pay when the goods enter Canada.

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EXCISE ACT 2001 RECORDKEEPING REQUIREMENTS

MORE THAN MEETS THE EYE — CRA’S STRINGENT REQUIREMENTS

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The Excise Act, 2001 (“EA 2001”) governs the taxation and regulatory framework applicable to specified goods, including tobacco, wine, spirits, and, more recently, vaping products. Recordkeeping requirements under the EA 2001 are among the most stringent in Canadian tax legislation. In our experience, CRA is increasingly relying on imperfect or incomplete records as a basis for assessing additional duty, interest, and, in some cases, significant penalties.

In this Indirect Tax Report, we review the statutory requirements for books and records under the EA 2001 and highlight key compliance risks and practical traps for industry participants.

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CERTIFYING ORIGIN - NOT JUST A "FORMALITY"

RULES OF ORIGIN NEED TO BE CONSIDERED WHEN PREPARING CERTIFICATIONS

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Canada has a significant network of free-trade agreements which direct sellers can make good use of covering numerous countries including the United States and Mexico ("CUSMA"/"USMCA"), the countries of the European Union ("CETA"), and twelve trans-pacific countries (plus the UK) (the "CPTPP").

However, before claiming treaty benefits, importers are required to have either a Certificate of Origin or an equivalent certification confirming the goods qualify as originating under the relevant free trade agreement.

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WHEN IS CANNABIS, CANNABIS?

CRA TAXING TRIM LIKE CANNABIS

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Cannabis cultivators and producers will generally be aware of the two-tier flat tax that applies to the production of cannabis products, such as pre-rolls. That is, a higher tax rate of $0.25 per gram applies to flowering material, while a lower tax rate of $0.075 per gram applies to non-flowering material – putatively on the basis that it is far less potent in terms of cannabinoid content (THC and CBD).