Tax & Trade Blog

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EXPIRY REVIEW TERMINATED: STEEL PLATE

CITT ENDS ANTI DUMPING DUTIES ON STEEL PLATE FROM UKRAINE

On September 18, 2025, the Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2025-003 . However, the CITT terminated its expiry review and cancelled its former order concerning the dumping of hot-rolled carbon steel plate and high-strength low-alloy steel plate with certain specifications originating in or exported from Ukraine excluding universal mill plate, plate for use in the manufacture of pipe and plate having a rolled, raised figure at regular intervals on the surface (also known as floor plate) (the “Subject Goods”).

More detail, including the full definition of the Subject Goods, can be found in the Order.

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NEW GST VOLUNTARY DISCLOSURE GUIDELINES!

UPDATED CRA VD PROGRAM GUIDELINES NOW IN EFFECT

On September 9, 2025, the Canada Revenue Agency (“CRA”) released GST/HST Memorandum 16-5-1 introducing major changes to its Voluntary Disclosure Program (“VDP”) in GST/HST matters (the “GST/HST VDP”), alongside IC00-1R7 – Voluntary Disclosure Programwhich outlines equally meaningful revisions to the income tax VDP.

This is the first update to the VDP since 2018 (which we wrote about back then here), and the changes appear aimed at encouraging more taxpayers to come forward and correct errors or omissions in their tax affairs (perhaps a result of less than anticipated take-up of the VDP program in recent years).  The new rules took effect Oct 1, 2025.

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LONG-ARM OF CRA COLLECTIONS

CRA FOLLOWS HUSBAND'S TAX DEBT TO WIFE

As we have blogged here and here, the CRA has “third-party” transfer powers that allow it to follow a taxpayer’s GST or income tax debts to relatives where it can demonstrate that money or assets have been diverted to those relatives, for less than fair market value. 

A better alternative would be dealing with one's tax debts during one's lifetime, and using the CRA’s newly revamped Voluntary Disclosure Program to help settle one’s tax affairs finally and effectively.

The Tax Court of Canada's (“TCC”) recent decision Ballantyne v. The King (2025 TCC 127) underscores the mess that can be created for a spouse or children if tax debts remain unaddressed.

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PROVISIONAL DUTIES ON STEEL STRAPPING

CBSA IMPOSES PROVISIONAL DUTIES ON CHINA, SOUTH KOREA, TURKEY, AND VIETNAM

On September 16, 2025, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping in respect steel strapping originating in or exported from China, South Korea, Türkiye (Turkey), and Vietnam, and the subsidizing of steel strapping from China (the “Subject Goods”).

Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after September 16, 2025!

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EXPIRY REVIEW: STEEL SHEET 2

CITT REVIEWING ANTI-DUMPING DUTIES ON STEEL SHEET FROM TURKIYE & VIETNAM

On September 9, 2025, the Canadian International Trade Tribunal (the “CITT”) issued a noticethat it was beginning an expiry review in respect of corrosion-resistant steel sheet 2 originating in or exported from the Republic of  Türkiye and the Socialist Republic of Vietnam (the “Subject Goods”).  On September 10, 2025, the Canada Border Services Agency (“CBSA”) similarly gave notice of the initiation of their parallel expiry review investigation.

More details on the technical definition of the Subject Goods can be found here.

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PROVISIONAL DUTIES IMPOSED ON STEEL WIRE

CERTAIN CARBON AND ALLOY STEEL WIRE

On September 4, 2025, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping in respect of certain carbon and alloy steel wire originating in or exported from China, Taiwan, India, Italy, Malaysia, Portugal, Spain, Thailand, Türkiye, and Vietnam (the “Subject Goods”).

Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after September 4, 2025!

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INCOME TAX IMPLICATIONS OF PRIZES & AWARDS

HOW TO VALUE THEM FOR INCOME TAX PURPOSES?

In a previous blog post, we wrote about the GST/HST implications of prizes and awards for direct sellers.  In this post, we turn to the income tax consequences, a topic that often causes confusion for Independent Sales Contractors (“ISCs”).  Understanding how these awards are treated for tax purposes is important as missteps can lead to unintended reporting errors or even overstating tax liabilities.

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US SUSPENDS DE MINIMIS DUTY-FREE TREATMENT

IMPORTS TO US NO LONGER BENEFIT FROM $800 DUTY-FREE LIMIT

Effective 12:01 a.m. (ET) on August 29, 2025, the United States (“US”) suspended the de minimis shipment exemption for goods imported from Canada, Mexico, and all other countries, marking a significant shift in cross-border trade rules.  The move, announced in a July 30, 2025 Executive Order by President Donald Trump, accelerates a policy change which had been expected in 2027.

This development will impact Canadian exporters who have relied on de minimis duty-free treatment to ship low-value goods to US consumers.  It will also impose new compliance obligations on carriers and exporters.

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CONTROLLED GOODS PROGRAM RENEWALS

TIMELY RENEWAL APPLICATIONS NECESSARY TO AVOID MAJOR HEADACHES

Like many other western nations, Canada regulates the possession and transfer of various military weapons and technologies through its Controlled Goods Program (respectively (“Controlled Goods” and the “CGP”).

In order to possess, examine or transfer Controlled Goods, a person must be registered (or exempt therefrom) under the CGP ("Registration" and a "Registered Party").  As Registration does not last indefinitely, Registered Parties must ensure their Registration never lapses and that required Applications for Renewal ("Renewal Applications") are prepared well in advance of their due dates.  Lapses in Registration, even only one day, can result in technical breaches, exclusion from the CGP and very serious headaches for businesses reliant on the CGP. 

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BRINGING GOLD TO CANADA?

COMPLICATED

Many newcomers to Canada arrive with valuable assets such as jewellery, gold bullion, or financial instruments.  A question we often receive is how to bring these items legally into Canada.  The answer is not always straightforward.  Canada has complex customs and financial regulations, and navigating them properly usually requires planning ahead and proper understanding of the rules.

Gold Jewellery

Under the Customs Act and its regulations, all goods brought into Canada must generally be reported at the nearest customs office.  This requirement applies no matter how the goods were acquired, whether purchased, received as a gift, or awarded as a prize.

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ELBOWS UP? DUMB STRATEGY

CANADA'S ELBOWS UP STRATEGY WAS DOOMED TO FAIL, AND IT JUST DID

As we first alluded to January 20, 2025, Canada's "retaliatory tariff" – or in the Prime Minister's view, our "elbows up" – strategy was a bad idea and of "questionable economic policy".  We also described it as a fight that Canada could not win for Bloomberg Daily Tax.

Perhaps expectedly, Prime Minister Carney has today backed off the heart and sole of that retaliatory response, creating an exception for US origin goods.

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GST 101: CARRYING ON A BUSINESS IN CANADA

GST REGISTRATION RULES FOR NON-RESIDENTS OF CANADA

This Report is another in our series of GST 101 Series Reports.  Each Report in this series focusses on an aspect of GST/HST that is part of the "building blocks" of the system.

In this Report, we focus on the “carrying on business in Canada” requirement, which is particularly relevant for determining the GST/HST Registration requirements for non-residents of Canada. 

Background on GST Registration for Non-Residents

In general, non-residents who carries on business in Canada may have to register for GST/HST if the non-resident makes a taxable supply in Canada (provided that other certain requirements are met), pursuant to ETA 240(1).

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CBSA INVESTIGATING OCTG IMPORTS - AGAIN!

OCTG FROM MEXICO, THE PHILIPPINES, TURKEY, SOUTH KOREA & USA

On August 11, 2025, the Canada Border Services Agency (“CBSA”) initiated an Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of Oil Country Tubular Goods (“OCTG”) originating in or exported from the United Mexican States, Republic of the Philippines, and originating in:

• the Republic of Türkiye (by or on behalf of Borusan Mannesmann Boru Sanayi ve Ticaret A.Ş.);
• the Republic of Korea (by or on behalf of Hyundai Steel Company); and
• the United States of America (by or on behalf of Tenaris S.A.).

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EXPIRY REVIEW: STEEL PLATE FROM UKRAINE

CITT REVIEWING ANTI-DUMPING DUTIES

On August 5, 2025, the Canadian International Trade Tribunal (“CITT”) issued a notice that it was beginning an expiry review in respect of hot-rolled carbon steel plate and high-strength low-alloy steel plate originating in or exported from Ukraine (the “Subject Goods”).  On August 6, 2025, the Canada Border Services Agency (“CBSA”) similarly gave notice of the initiation of their parallel expiry review investigation.

More details on the technical definition of the Subject Goods can be found here.

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GST/HST IMPLICATIONS ON COMMON INCENTIVES

BONUSES, COMMISSIONS, PRIZES & AWARDS

For direct sellers, one important aspect of running a successful compensation plan is offering bonuses, commissions, prizes and awards to recognize and incentivize high performance.  While these incentives are a common feature of direct selling plans, their GST/HST implications are often overlooked.  This blog outlines the key GST/HST considerations that direct sellers should keep in mind when providing such incentives.

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NEWFOUNDLAND SUGAR TAX UPDATE

PROVINCE AMENDS REGULATIONS EFFECTIVELY ELIMINATING SSBT

We have previously blogged about the enactment of Newfoundland and Labrador’s (“Newfoundland”) Sugar Sweetened Beverage Tax (“SSBT”) in late 2022 here, and provided an update on the SSBT’s interaction with the collection of GST/HST here.  In just a period of three years, Newfoundland has switched course and recently chosen to effectively eliminate the SSBT through an amendment to the Revenue Administration Regulations (the “Regulations”).

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DIRECTOR'S LIABILITY FOR HOME BUILDERS

 CRA TARGETS CORPORATE DIRECTORS

As we have blogged about here and here, the CRA continues to assess home builders, renovators and others in the residential real estate industry on the basis that their activities may constitute a business subject to GST/HST.

A recent Tax Court of Canada (“TCC”) decision in Ayoub v. the King, 2025 TCC 48 illustrates both the complexity of these rules and the risk that corporate directors can be held personally liable for unremitted GST/HST – even when the corporation is the builder!

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CBSA COMPLIANCE VERIFICATION PRIORITIES

FOCUS ON U.S. & CHINA SURTAX ORDERS

The Canadian Border Services Agency (the “CBSA”) has released the July 2025 update to its compliance and verification priorities.  This update is part of the CBSA’s semi-annual process of resetting its verification priorities, which occurs in January and July of each year.

In this July 2025 update, the CBSA has placed a significant focus on the U.S surtaxes, alongside other ongoing compliance areas from previous rounds.  We provide a detailed breakdown of these priorities below.

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TARIFF REMISSION UPDATE

CANADA AMENDS UNITED STATES SURTAX REMISSION ORDER

With Canadian businesses still facing down the debilitating financial effects of the Canada-United States (US) trade war, the Government of Canada is attempting to provide businesses with further relief from its retaliatory tariffs.

On July 16, 2025, Canada enacted an Order in Council amending the United States Surtax Remission Order (2025) (the “Remission Order”), extending remission relief to a number of new products (adding further Schedules 2 to 5) and we report on the further opportunities for remission relief here.

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CRA MOVES TO ONLINE MAIL FOR BUSINESSES

WHAT YOU NEED TO KNOW

As of May 2025, the Canada Revenue Agency (the “CRA”) has begun implementing a significant change in how it communicates with businesses.  Online mail is now the default method for delivering most CRA correspondence through the My Business Account portal.

This transition affects both new and existing businesses and is part of the CRA’s ongoing movement towards online services – for better or for worse.  Our report on what businesses really need to know about these changes is set out below.