CALL US TODAY
(416) 864 - 6200

Tax & Trade Blog

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Archives
    Archives Contains a list of blog posts that were created previously.

CRA Assessing Taxicab Fleet Management Companies for “Re-Supplying” Insurance

Posted by on in Tax Law
  • Font size: Larger Smaller
  • Hits: 2132
  • 0 Comments
  • Subscribe to this entry
  • Print

CRA has recently been issuing assessments to taxicab fleet management companies for failing to charge GST/HST on pass-through insurance premium expenses. 

Standard industry practice in Ontario is for taxi cab drivers to obtain insurance from Canadian insurers by signing up to be part of a fleet with a fleet management company (the "Fleet Manager”).  The Fleet Managers typically charge the drivers a small fee to be part of the fleet and arrange for insurance coverage on their behalf, paying applicable insurance premiums to the insurers as agent of the drivers. The Fleet Manager is then reimbursed by the driver for that payment. Fleet Managers do not -- properly in our estimation -- collect GST/HST on the insurance premium payments made by the driver, since they would appear to be reimbursement for payments made by the Fleet Manager as agent.

While CRA has been assessing Fleet Managers for failing to charge GST/HST on the insurance premium payments charged to and reimbursed by the drivers, we believe that this has been an incorrect assessment position. Unfortunately for the Fleet Managers in this situation, it would appear that Tax Court appeals are necessary in order to vindicate their positions.

Millar Kreklewetz LLP has assisted a number of Fleet Managers faced with this type of issue in the past.

Last modified on
0

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Friday, 15 November 2019

Toronto Office

24 Duncan Street, Third Floor, Toronto, Ontario, M5V 2B8 Canada
Phone: (416) 864-6200| Fax: (416) 864-6201

Client Login

To access the Millar Kreklewetz LLP secure client file transfer system, please log in.