The Canadian Minister of National Revenue (“Minister”) may, under subsection 231.2(3) of the Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.) and subsection 289(3) of the Excise Tax Act, R.S.C. 1985, c. E-15, seek information from third parties in order to look for tax cheats. The request by the Minister is known
Non-Residents cannot open or update Canadian GST/HST accounts during COVID-19 shutdown
The Canada Revenue Agency (“CRA”) has temporarily suspended all activities relating to non-resident goods and services tax (“GST”) and harmonized sales tax (“HST”) accounts. The CRA Non-Resident Tax Services Offices (TSO) are closed.
In the last week, I have had to tell four U.S.-based businesses that the CRA is effectively closed to non-resident businesses and
Canada Grants Customs Duty, GST/HST and Excise Tax Relief for COVID-19 Emergency Goods
On March 16, 2020, the Canada Border Services Agency (“CBSA”) issued Customs Notice 20-08 “Imported Goods for Emergency Use in Response to COVID-19”, which discusses the circumstances where customs duty and goods and services tax (“GST”) /harmonized sales tax (“HST”) and excise tax relief will be granted for goods imported into Canada that will
Top Ten Issues For Direct Sellers Doing Business in Canada
Direct sellers (also known as network sellers) enter the lucrative Canadian market, often without asking questions about whether there are any Canadian laws they should know about. Canadians sign up as independent sales contractors and start to build their sales networks before all questions are asked and answers are received about compliance with Canadian laws.
Can the Canada Revenue Agency ask a taxpayer to provide documents for GST/HST purposes?
We regularly get asked whether the Canada Revenue Agency (“CRA”) can ask for particular documents during the course of a goods and services tax (“GST”) / harmonized sales tax (“HST”) audit or during a GST/HST appeal. Usually, the question is in the form of a statement “they are not allowed to ask for that”. Our
Option to Save U.S. Trump Tariffs – Use 3PL Warehouse in Canada
At midnight, the United States increased tariff rates on many goods from China from 10% to 25% (referred to as the “U.S. Trump Tariffs”). The U.S. Trump Tariffs are a form of customs duty that is payable by the importer and is passed on to U.S. consumers.
As a result of the new higher U.S.
Canada’s Sales Tax Rates as at May 1, 2019
Non-resident companies doing business in Canada who have registered for Canadian sales taxes often ask us to provide a chart that contains Canada’s sales tax rates. There isn’t a single sales tax rate for all of Canada. There are differences across the country and non-resident businesses need to ensure that they are following the sales
The Canada Revenue Agency is auditing doctors for GST/HST
The Canada Revenue Agency (“CRA”) has recently been auditing doctors and medical practitioners for goods and services tax (“GST”) and harmonized sales tax (“HST”). We have seen a number or re-assessments for amounts paid to doctors and medical practitioners for services that do not or may not qualify as exempt medical services. Doctors and medical
Can the Canada Revenue Agency ask for electronic financial records of a non-resident company?
The short answer is that the Canada Revenue Agency may try even if they are not given the statutory authorization to ask a non-resident company for their complete financial records to be sent to Canada. Auditors might try to see what they can get their hands on and may even bully non-resident businesses into providing
Tell the CRA what you think of them – The CRA wants to know
Canada
On April 23, 2019, the CRA launched public consultations to find out how it can change and what improvements it can make. In the April 23rd announcement, the CRA stated:
“Today, as part of its ongoing efforts to improve the client experience for individuals who interact with us, the CRA launched public consultations