Canada is known as Hollywood North because many movies and television shows and commercials are filmed in Canada. However, unlike the United States, Canada has a federal sales tax called the goods and services tax (“GST”) and in some provinces harmonized sales tax (“HST”) is imposed. GST/HST is exigible in respect of supplies of services… Continue Reading
Tag Archives: GST
What should a taxpayer under audit do if the CRA auditor proposes an assessment?
Posted in Canada's Federal Government, GST/HSTThe Canada Revenue Agency (“CRA”) conducts audits to ensure that taxpayers are paying or remitting the correct amount of taxes. In Canada, the CRA enforces Canada’s income tax, Goods and Services Tax (“GST”), Harmonized Sales Tax (“HST”) and federal payroll taxes laws. These tax systems all have an element of self-reporting. If the CRA auditor… Continue Reading
Ask Questions Before You Market Access into Canada?
Posted in AMPs, Canada's Federal Government, Corporate Counsel, Cross-border trade, Customs Law, GST/HST, origin, Sales Taxes, tariff classification, valuationMany U.S. and foreign companies that sell goods on Internet-based retail platforms (both in-house platforms and Amazon-type platforms) should ask more questions as they access Canada’s consumer market. Often, the first question asked by the foreign company is how to access the Canadian market (as they see dollar signs). After they foreign company figures out… Continue Reading
Dear US Companies: Are You Sure You Are Reporting Canadian GST/HST Correctly?
Posted in GST/HSTLet’s face it – The United States does not have a value-added tax and does not have a federal sales tax. The Canadian goods and services tax (“GST”) and harmonized sales tax (“HST”) are foreign in more ways than one. With the expansion of Internet based sales into Canada, we are seeing a lot of U.S…. Continue Reading
Canadian Sales Tax Rates (effective as of October 1, 2016)
Posted in GST/HSTCanada’s sales tax rates chart must be changed again as Prince Edward Island increases its sales tax rate to 15% as at October 1, 2016. Canadian businesses and foreign businesses carrying on business in Canada must update their systems to reflect the new rate for PEI. Canadian Sales Tax Rates Chart As at January 1,… Continue Reading
How To File A “Service Complaint” Against The Canada Revenue Agency
Posted in GST/HSTIn writing this blog post, we are not advocating filing baseless, frivolous, vexatious and retaliatory “service complaints” against Canada Revenue Agency (“CRA”) auditors, collections officers and other employees of the CRA. However, we have learned from the experience of our clients that some legitimate complaints arise from time-to-time. It is in the spirit of transparency… Continue Reading
15 Stages Of A Canada Revenue Agency GST/HST Audit
Posted in GST/HSTIf you have never been audited before, you probably have no idea what to expect. Most audits follow the same 15 stages (more or less). On the taxpayer’s side of things, each stage is stressful. CRA Selection Process: The taxpayer usually has no involvement in this process. It all happens behind the scenes and the taxpayer… Continue Reading
Taxpayer Interest And Penalty Relief: How Can A Taxpayer Get Some Relief?
Posted in GST/HSTCanadian taxpayers are entitled to apply to the Canada Revenue Agency for taxpayer relief of penalties and interest. All that is required is for a taxpayer who has been assessed to complete and submit an RC4288 form “Request for Taxpayer Relief – Cancel or Waive Penalties and Interest”. This form can be used for goods and services… Continue Reading
Make A List And Check It Twice: Record All Information Provided To A CRA Auditor
Posted in GST/HSTOne of the most common mistakes we see taxpayers make during a Canada Revenue Agency (“CRA”) audit is that they do not record what documents were requested by the auditor, what documents were provided to the auditor, and when those documents were provided to the auditor. What is common is that documents are requested by… Continue Reading
Canadian Athletes Do Not Have To Pay Customs Duties And Border GST On Their Medals
Posted in Customs Law, GST/HSTCanadian Olympians returning home from the Rio Olympics (or any athletic competition for that matter) do not have to pay customs duties and goods and services tax (“GST”) on their medals. No customs duties are payable under Harmonized System (H.S.) Code 98.17, which covers “medals, trophies and other articles (not including usual merchantable products nor… Continue Reading
What Are The Pros And Cons Of Being A Non-Resident Importer Into Canada?
Posted in Cross-border trade, Customs Law, GST/HST, Imports Restrictions, Intellectual Property, origin, Sales Taxes, tariff classification, valuationThe Internet enables foreign companies to market and sell to Canadian consumers without setting up in Canada. A common question of foreign sellers with opportunities to sell to Canadians is “Should I sell into Canada as a non-resident importer?” Before answering this question, we must go back to the basics. What is an importer? The… Continue Reading
How To Find Out What Is In The Canada Revenue Agency’s Files About Your Audit
Posted in Sales Taxes, TaxWouldn’t you like to know what is in the Canada Revenue Agency’s (“CRA”) files concerning your GST/HST audit? This information is very valuable in finding out where the CRA made a mistake or what is the basis for the misunderstanding about your taxes. We recommend obtaining this information as soon as possible after an assessment… Continue Reading
About Cyndee
Cyndee Todgham Cherniak is the founding lawyer of LexSage, a boutique international trade law and sales tax firm in Toronto, Ontario. She has practiced for almost 20 years at Canada’s top Bay Street law firms.
About Su
Su’s practice focuses on compliance whether dealing with cybersecurity/privacy or import/export. She deals with regulatory, civil and criminal issues. Her clients come to her for assistance to solve current challenges but also to identify and manage risk.
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