Tax & Trade Blog

---

STORED AVIATION FUEL SALES – GST LIABILITY

CRA POSITION ON TAXABLE “INTO-TANK” FUEL SALES CREATES REAL GST RISKS

Download a PDF copy of this Blog here.

A longstanding GST/HST issue in the aviation industry has been whether aviation fuel purchased for use on international commercial flights remains zero-rated when it is delivered into airport storage tanks or “fuel farms”, rather than directly “into the wing” of an aircraft. In recent roundtable discussions with the Canada Revenue Agency (“CRA”), the Agency maintained its position that fuel delivered into storage tanks is taxable because of the risk of diversion to other uses.

---

TCC: NO EASY WAY TO PRE-PAY QUARTERLY GST

TAX AUTHORITIES WILL NOT AUTOMATICALLY APPLY SURPLUS TO INSTALLMENTS DUE

Download a PDF copy of this Blog here.

Quarterly GST/HST installments are a persistent administrative headache for many business owners. However, a recent Tax Court of Canada (“TCC”) decision proves there are no easy shortcuts around these recurring compliance duties.

---

CBSA TARGETING CARPETS AND AREA RUGS?

VERIFICATION AUDITS FOCUSING ON CLASSIFICATION UNDER CHAPTER 57

Download a PDF copy of this Blog here.

A good part of our Tax and Trade practice involves advising Clients in the Textiles industry on matters involving Canadian customs duties and taxation on imported goods.

Recently, we have seen an increase in Canada Border Services Agency (“CBSA”) verification audits and assessments involving carpets and area rugs. One focal point seems to be the application of Tariff Chapter 57 of the Customs Tariff (“CT”), which contains many of the Harmonized System (“HS”) Classification codes for carpets and similar textile floor coverings. Improper tariff classification can lead to significant duty assessments and penalties, even for importers who have “always used” a particular tariff code without issue.

---

TEMU & ALIEXPRESS PLEDGE TO HEALTH CANADA

MARKETPLACES JOINING PLEDGE IS GOOD NEWS FOR DIRECT SELLERS

Download a PDF copy of this Blog here.

Health Canada’s Canadian Product Safety Pledge (the “Safety Pledge”), which we have previously discussed here, continues to expand, with online marketplaces Temu Canada and AliExpress now joining Amazon Canada and eBay Canada as signatories.

The Safety Pledge is a voluntary compliance initiative aimed at increasing product safety for consumer products and cosmetics available to Canadians online. By signing the Safety Pledge, Temu Canada and AliExpress have committed to taking 14 preventative and corrective actions intended to strengthen the safety of products sold through their platforms.

---

CUSTOMS VALUATION & STEEL IMPORTS

GETTING VALUE FOR DUTY RIGHT IN THE STEEL INDUSTRY

Download a PDF copy of this Blog here.

The US-Canada trade dispute created a trade environment that makes proper customs valuation a critical issue for businesses in the steel industry. In particular, getting the value for duty correct (and avoiding costly assessments by the CBSA and US CBP) is critically important when one considers that ordinary customs duties, surtaxes, special tariffs, and anti-dumping duties could potentially apply depending on the steel imports in question.

---

BAKERY GETS ANTI-DUMPING DUTIES RELIEF

CANADIAN REFINED SUGAR SHORTAGE LEADS TO SUCCESSFUL REMISSION!

Download a PDF copy of this Blog here.

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?

---

PRIVILEGE AT RISK IN CRA RFI PROCEEDINGS?

FEDERAL COURT DECLINES PRIVILEGE REVIEW & ORDERS PRODUCTION TO CRA

Download a PDF copy of this Blog here.

As discussed in our review of Federal Court’s (“FC”) 2025 pair of decisions in Shopify here and here, the Canada Revenue Agency (“CRA”) has judicial means to compel information from taxpayers through Requests for Information (“RFI”). These powers are usually subject to important limits, including solicitor-client privilege.

However, a recent decision from the FC shows that asserting privilege may not be enough to protect documents from disclosure. In Canada v. KPMG Canada LLP, 2026 FC 793, the FC considered a compliance application under section 231.7 of the Income Tax Act (“ITA”) – for which a parallel mechanism exists under section 289.1 of the Excise Tax Act (“ETA”) – and granted an order compelling production of more than 900 documents over which privilege was asserted.

---

CUSTOMS VALUATION & RELATED PARTY PRICING

IT’S THE 1990’S ALL OVER AGAIN! CUSTOMS VALUATION RULES REIGN

Download a PDF copy of this Blog here.

The new tariff environment in 2025 and 2026 has put a premium on getting the “big three” declarations correct when it comes to customs importations. These are: tariff classification, origin, and value for duty.

In this Customs 101 Series Report, we review the basics of customs valuation where goods are being bought from, and imported between, related parties.

---

加拿大延长附加税措施

财政部确认将延长钢铁附加税及相关减免措施

请点击此处下载本文的PDF版本

CANADA EXTENDING SURTAX REGIMES

DOF CONFIRMS EXTENSIONS INCOMING ON STEEL SURTAXES & RELATED RELIEF

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

加拿大财政部（“DOF”）近日发布新闻稿，确认加拿大将延长若干钢铁附加税措施及针对进口钢铁产品的横向关税减免措施。延长这些措施的目的是为了“保护钢铁工人和行业免受钢铁贸易转移的影响”并“为生产商和进口商提供商业可预测性和更长期的确定性”。

在本期《钢铁行业法律评论》中，我们将介绍哪些附加税措施及税款减免类别预计将在近期获得延长。

---

铝产品附加税法律评论

加拿大针对中国铝产品实施多项附加税

请点击此处下载本文的PDF版本

Aluminum Surtax Report

Multiple Canadian Surtaxes Target Chinese Aluminum

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

与我们此前在此处和此处介绍过的加拿大钢铁附加税制度类似，加拿大针对进口铝产品也实施了一系列附加税。具体来说，中国原产的铝产品是若干附加税措施的主要目标之一。这一点其实并不令人意外，因为中国是全球最大的铝生产国之一，并常被称为全球铝产业的“重心”所在（中国目前铝产量占全球的60%以上）。

在本期《海关与贸易法律评论》中，我们将介绍加拿大针对铝产品的附加税制度，并讨论加拿大《特别进口措施法》（“SIMA”）下同样影响铝产品进口的若干反倾销及反补贴税（“ADCVD”）规则。

---

GST/HST REPRIEVE FOR TRAILING COMMISSIONS

CRA DELAYS GST/HST ENFORCEMENT ON MUTUAL FUND TRAILING COMMISSIONS

Download a PDF copy of this Blog here.

As we have blogged here, the Canada Revenue Agency (“CRA”) previously announced that mutual fund trailing commissions paid by mutual fund managers to licensed dealers — and by dealers to their agents — would become taxable effective July 1, 2026.

However, in May 2026, through an updated GST/HST Notice 344, the CRA delayed enforcement of its new administrative position to January 1, 2028. This is a welcome development for mutual fund managers, dealers, and advisors, but industry participants should use the transition period to prepare for the new GST/HST treatment.

---

SOLICITOR-CLIENT PRIVILEGE CAN BE LOST!

ONCA FINDS “DEEMED WAIVER” IN SUBSTANCE OF PLEADINGS

Download a PDF copy of this Blog here.

Solicitor-client privilege generally entitles clients to seek and obtain legal advice without fear that those communications will later be disclosed – a foundational doctrine in the Canadian legal system.

However, a recent case from the Ontario Court of Appeal (“ONCA”) shows that in some cases, privilege may be lost where a party relies on its understanding of its legal position in its court pleadings – even without expressly referring to the legal advice it has received.

---

JURISDICTION IN TAX DISPUTES TRICKY

INTERPRETATION OF APPEAL PROVISIONS CAN BE A COMPLICATED TASK!

Download a PDF copy of this Blog here.

We have previously written about jurisdictional issues between the Tax Court of Canada (“TCC”) and Provincial Superior Courts here. A recent decision of the TCC – Desjardins v. the King, 2026 CCI 109 [Desjardins] – further illustrates the tricky nature of jurisdiction in tax disputes and that getting the forum correct is not a simple task.

In this update to our Tax Appeal Series on jurisdiction in tax disputes, we review the Desjardins decision with a view to highlighting the complicated task of statutory interpretation and its intersection with jurisdiction in tax disputes.

---

DRAFT FORCED LABOUR BAN

CANADA TAKING STEPS TO APPEASE UNITED STATES & AVOID TARIFFS

Download a PDF copy of this Blog here.

Our firm has recently written on Canada’s forced labour laws here and here. In a further update to Canada’s legislative regime designed to combat forced labour, Bill C-35 was introduced on June 12, 2026, with the aim of prohibiting the importation of goods produced by forced labour (the “Bill C-35”).

In this report, we review the political background that gave rise to this draft forced labour legislation and outline its contents.

---

ALUMINUM SURTAX REPORT

MULTIPLE CANADIAN SURTAXES TARGET CHINESE ALUMINUM

Download a PDF copy of this Blog here.

Like Canada’s steel surtax regime, which we have reported on here and here, Canada also implements a series of surtaxes aimed at imported aluminum goods. In particular, aluminum goods of Chinese origin are a primary target of certain surtaxes – and that might be expected given that China is among the world’s top aluminum manufacturers – and often referred to as the World’s center of gravity in aluminum (currently accounting for over 60% of overall production).

In this Customs & Trade Report, we review Canada’s surtax regime with respect to aluminum products, and some special Anti-Dumping & Countervailing duties (“ADCVD”) rules also impacting aluminum imports under Canada’s Special Import Measures Act (“SIMA”).

---

STATUTE OF LIMITATIONS IN TAX AUDITS

WHEN THE FOUR-YEAR RULE DOES - AND DOES NOT - PROTECT YOU

Download a PDF copy of this Blog here.

When it comes to Tax Audits, most Tax Auditors — whether from the federal Canada Revenue Agency (“CRA”) or provincial counterparts auditing for tobacco, fuel or other provincial compliance matters —operate within a four-year general limitation period.

In this Tax Audits Series Report, we review the general statute of limitations rules applicable to tax audits, as well as the key exceptions that allow Tax Auditors to reassess beyond that four-year period.

---

CBSA: NO PROVISIONAL DUTIES ON AUSTRIAN OCTG

AN UNUSUAL NO-DUTY RESULT AFTER PRELIMINARY DUMPING DETERMINATION

Download a PDF copy of this Blog here.

On May 4, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping in respect of Oil and Gas Well Casing 6 originating in or exported from Austria (the “Subject Goods”).

Notably, despite determining an estimated margin of dumping of 22.6% for Voestalpine Tubulars GmbH & Co KG, the CBSA has decided NOT to impose provisional duties on imports of the Subject Goods at this stage of the investigation.

---

STRICTER FORCED-LABOUR REGIME AHEAD?

CANADA TO STRENGTHEN FORCED LABOUR REGIME UNDER U.S. TARIFF PRESSURE

Download a PDF copy of this Blog here.

Forced-labour compliance has been a growing issue for Canadian importers for several years.  While Canada already has import restrictions on forced-labour products in place, the federal government is now looking to strengthen that regime further — this time under U.S. tariff pressure.

On June 2, 2026, the United States Trade Representative (“USTR”) announced that Canada had failed to effectively enforce prohibitions on goods made with forced labour.  Accordingly, the USTR has proposed an additional 10% tariff on goods from Canada.

In response, Canada has indicated that new legislation will soon be introduced to make that regime even stronger.  For importers, this is a clear signal that the forced-labour rules may become stricter.

---

TCC POWERLESS OVER CRA COLLECTIONS

CRA FREE TO GARNISH UNREMITTED GST/HST - EVEN WITH TCC APPEAL PENDING

Download a PDF copy of this Blog here.

In the recent Tax Court of Canada (“TCC”) decision Harris v. The King, 2026 TCC 89 (“Harris”), a taxpayer assessed for unremitted GST/HST learned the hard way about the Canada Revenue Agency’s (“CRA”) extremely broad Collection Rights.

In this Tax Audits Series we review the Harris decision and the key differences it highlights between the CRA’s ability to collect GST/HST debts and Income Tax debts – and why it demonstrates that retaining Experienced Tax Counsel at the front-end of the audit process can help avoid harsh collections action later on.

---

NEW CRA GUIDANCE ON PROVINCE OF SUPPLY

CRA’S POLICIES ON PROVINCE OF SUPPLY RULES NOW FOUND IN NEW D-MEMO SERIES

Download a PDF copy of this Blog here.

Determining the province in which a supply occurs is a fundamental requirement for GST/HST compliance, because it dictates the applicable tax rate: 5% GST, 13% GST/HST in Ontario, 14% GST/HST in Nova Scotia, or 15% GST/HST in the remaining Atlantic provinces.

The rules for determining the provincial place of supply have not changed, but the Canada Revenue Agency (“CRA”) recently updated its applicable published guidance on these rules, meaning there are now new sources to be consulted when dealing with these issues.