Tax & Trade Blog

---

CERTIFYING ORIGIN - NOT JUST A "FORMALITY"

RULES OF ORIGIN NEED TO BE CONSIDERED WHEN PREPARING CERTIFICATIONS

Download a PDF copy of this Blog here.

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.

---

WHEN IS CANNABIS, CANNABIS?

CRA TAXING TRIM LIKE CANNABIS

Download a PDF copy of this Blog here.

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).

---

NEW US FOREIGN IMPORTER OF RECORD RULES

NEW RULES WILL AFFECT CANADIAN BUSINESSES IMPORTING INTO THE US

Download a PDF copy of this Blog here.

Both Canada and the US have a concept that allows a foreign entity to act as the "importer of record" of goods into the other country – traditionally referred to in Canada as a “non-resident importer” or NRI. The US term for this is a “foreign importers of record” or FIOR.

---

CANADA-CHINA TRADE RESET

SIX MONTHS LATER: WHAT HAS REALLY CHANGED?

Download a PDF copy of this Blog here.

Following escalating trade tensions since 2024, Prime Minister Carney’s January 2026 visit to China produced a notable attempted “reset” in Canada-China trade relations. The tariff measures agreed to as part of that reset took effect on March 1, 2026.

---

SIMPLIFIED CANADIAN TRANSFER PRICING RULES

NEW RULES ADDRESS OLD PROBLEM: SMALLER BUSINESS DOCUMENTATION STANDARDS

Download a PDF copy of this Blog here.

Canada’s transfer pricing rules were first introduced in 1997 and essentially require Canadian businesses transacting with related foreign parties – for example, buying, selling or licensing goods, services and intangibles within a multinational corporate group – to maintain written documentation explaining how their prices comply with internationally accepted arm’s length principles. The Canada Revenue Agency (“CRA”) has historically adopted the OECD Transfer Pricing Guidelines for that purpose.

---

NEW SURTAXES ALSO AFFECT STEEL & ALUMINUM

CARNEY GOVERNMENT’S NEW SURTAXES AMEND PRIOR STEEL & ALUMINUM ORDER!

Download a PDF copy of this Blog here.

As part of the Canadian Federal Government’s new round of retaliatory surtaxes that came into effect on September 8, 2026, consequential amendments were made to the United States Surtax Order (Steel and Aluminum 2025) (the “Steel/Aluminum Surtax”).

---

HST CANNOT BE SET OFF AGAINST DEBTS OWNING

BCAA CONFIRMS HST CANNOT BE SET OFF AGAINST SUPPLIER’S DEBTS

Download a PDF copy of this Blog here.

Many commercial agreements include broad rights of set-off, which sophisticated businesses use to net out liabilities between parties. While that seems straightforward in commercial terms, businesses run into problems when applying this practice to GST/HST. Under the Excise Tax Act, HST collected – or collectible – by a supplier is NOT the supplier’s money to begin with. Rather, it is money held in trust for the Crown.

---

GST/HST REGISTRATION FOR CONDO CORPS

WHEN TO REGISTER, TAXABLE STATUS OF SUPPLIES, CAN BE TRICKY QUESTIONS

Download a PDF copy of this Blog here.

Property managers and board directors of condominium corporations (“Condo Corps”) often assume that registration for GST/HST under the Excise Tax Act (“ETA”) is not required because supplies made to residential condominium units are exempt of GST/HST.

---

PROVISIONAL DUTIES ON CHINESE PLYWOOD

CBSA ISSUES PRELIMINARY DETERMINATION ON PLYWOOD FROM CHINA

Download a PDF copy of this Blog here.

On August 24, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping and subsidizing in respect of decorative and other non-structural plywood originating in or exported from the People’s Republic of China (the “Subject Goods”).

---

PRELIMINARY DETERMINATION: STEEL RACKS

CBSA IMPOSES PROVISIONAL DUTIES ON STEEL RACKS FROM CHINA

Download a PDF copy of this Blog here.

On September 2, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping and subsidizing in respect of steel racks originating in or exported from the People’s Republic of China (the “Subject Goods”). Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after September 2, 2026.

---

AMENDMENTS TO INDIRECT TAX RULES INCOMING

BILL C-31 NOW BEFORE FINANCE STANDING COMMITTEE & NEAR ENACTMENT

Download a PDF copy of this Blog here.

As a follow up to our previous report on Canada’s Budget 2025 (the “Budget”), certain indirect tax measures proposed in the Budget are now being considered by Parliament, as the Budget 2025 Implementation Act, No. 2 (“Bill C-31”) received its second reading on June 3, 2026, and is currently at the House of Commons Standing Committee on Finance for consideration.

---

CRA REFUNDS: WHERE DID MY MONEY GO?

CRA EXPLAINS WHY TAX CREDITS ARE AUTOMATICALLY TRANSFERRED

Download a PDF copy of this Blog here.

Many taxpayers expect that once the Canada Revenue Agency (“CRA”) determines that they are entitled to a GST/HST or income tax refund, that the refund will simply be paid. Unfortunately, that is often not the case (!) with the CRA explaining its “set-off” rights in a recent industry roundtable, confirming that where refunds are due, those amounts can often be automatically transferred to satisfy outstanding balances in other CRA tax accounts.

---

CRA AUDIT SETTLEMENTS: IS THAT A REAL THING?

CRA EXPLAINS HOW AUDITS CAN BE SETTLED & WHO REALLY MAKES THE DECISION

Download a PDF copy of this Blog here.

Many taxpayers assume that once a CRA auditor starts an Audit, the Audit needs to be completed, with no opportunity to reach an early settlement on contentious issues. To the contrary, CRA has recently confirmed that many Audits can, in fact, be settled – albeit only after being subject to additional internal review before becoming final.

---

BC HEADING BACK TOWARDS HARMONIZATION?

EXPANSION OF BC’S PROVINCIAL SALES TAX NARROWS THE GAP WITH THE HST

Download a PDF copy of this Blog here.

As we previously blogged on here, British Columbia (“BC”) recently announced a further expansion of its Provincial Sales Tax (“PST”) base to certain goods and services including new professional services like accounting, architectural, and real estate services.

---

DANGERS OF SELF-ISSUED USMCA CERTIFICATES

IMPORTERS MAY SIGN OWN CERTIFICATES – BUT AT OWN PERIL!

Download a PDF copy of this Blog here.

One of the significant changes introduced by the Canada-United States-Mexico Agreement ("USMCA"), relative to the former NAFTA regime, was the expansion of who may complete and execute a USMCA Certification of Origin. In particular, importers are now permitted to complete and sign their own Certifications of Origin, rather than relying solely on exporters or producers.

---

CRA BUSINESS ACCOUNT: AUTHORIZATION TRAPS

WHO CAN ACCESS WHAT?

Download a PDF copy of this Blog here.

Most Canadian businesses assume that once an employee or professional advisor has been authorized to deal with the Canada Revenue Agency (“CRA”), that individual has the immediate ability to access and update all of the business’s online CRA information. As the CRA recently confirmed at an industry roundtable, that assumption is incorrect, with different authorization levels permitting different activities and access to one CRA Account not necessarily providing access to others.

---

NEW OPPORTUNITIES FOR CANADA–UK TRADE

CANADA RATIFIES THE ACCESSION OF THE UK TO THE CPTPP

Download a PDF copy of this Blog here.

On July 3, 2026, Canada ratified the Protocol on the Accession of the United Kingdom (“UK”) to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”). The CPTPP will apply to Canada-UK trade effective September 1, 2026.

---

WINERY COMPLIANCE IN ONTARIO AND B.C.

UNDERSTANDING THE FEDERAL EXCISE ACT 2001 COMPLIANCE REGIME

Download a PDF copy of this Blog here.

Ontario and British Columbia (“B.C.”) are leading wine-producing provinces with well-established statutory frameworks governing how wineries may produce, market, and sell wine. Those provincial rules, however, are only part of the compliance picture. Wineries in Ontario and B.C. are also subject to the Federal Excise Act, 2001 (“EA 2001”), which imposes a separate compliance regime for licensing, reporting, removals, and recordkeeping.

---

CRA ADOPTS 2-YEAR AUDIT WORKPLANS

LARGE BUSINESSES UNDER AUDIT TO FACE BROADER INITIAL RECORDS REQUESTS

Download a PDF copy of this Blog here.

The Canada Revenue Agency (“CRA”) has recently announced an important administrative change affecting many large business audits (“Audits”). More specifically, CRA has advised at a major industry roundtable that rather than examining one taxation year at a time, Auditors may now adopt a two-year Audit workplan and request records from multiple years at the outset of an Audit.

---

25% SURTAX ON WOOD CABINETS & VANITIES

200-DAY PROVISIONAL SURTAX PLACED ON CABINETRY – BUT COULD BE MADE PERMANENT

Download a PDF copy of this Blog here.

On July 31, 2026, Canada enacted a provisional 25% safeguard surtax (“Safeguard Surtax”) on specific wood cabinet and vanity products.