April 11, 2024
by
Diana Cameron
A recently obtained Canada Revenue Agency (CRA) internal communiqué – dated May 17, 2023 – states “effective the date of this communiqué, CRA appraisers will report Fair Market Value (FMV) as inclusive of GST/HST.” This is good news for builders, reducing appeals and objections resulting from disputes with the CRA on FMV as it relates to self‑supply of residential complexes.
May 15, 2023
by
Melinda Fleming
Planning to build or substantially renovate a residential rental property? Whether it’s a small rental house or large apartment tower, property developers in Canada are subject to strict GST/HST obligations.
October 25, 2022
GST/HST is generally applicable when property and/or services destined exclusively for commercial purposes are supplied by a closely related party who is registered for that tax. To simplify tax accounting and improve cashflow, certain closely related Canadian corporations and partnerships can elect under subsection 156(2) of the Excise Tax Act, via Form RC4616, to treat certain supplies by a closely related person as if they were made without consideration.
May 4, 2022
by
John F. Oakey
If you are involved with cryptocurrency mining, you need to understand the GST and HST implications of your operations. Our latest Indirect Tax Alert explores new draft proposals that would impact how activities such as Bitcoin mining are taxed.
October 22, 2021
by
Julie Thacker
The sale of vacant land can be taxable or exempt for purposes of GST/HST under the Excise Tax Act. Generally, vacant land sold by individuals is exempt, subject to certain exceptions.
March 24, 2021
by
Sean Kelly
Where a person receives an assessment for income tax purposes and files an objection, the Income Tax Act prevents the CRA from taking collection measures in most cases until the objection is settled. However, the CRA is not subject to the same restraint where a person is assessed for GST/HST purposes. Section 315 of the Excise Tax Act (ETA) provides that, where a notice of assessment is issued, any amount assessed (including interest and penalties) becomes payable “forthwith” – meaning immediately.
December 11, 2020
by
Sameer Noormohamed, Mark Bloch
In Canada, governments at all levels and of all political stripes struggle to deal with the rising costs associated with delivering quality health care to Canadians. They strive to pay for the services patients need and demand when they visit their doctors, dentists, psychologists, orthodontists and other members considered under the Excise Tax Act (ETA) as “practitioners” and “medical practitioners.”
September 17, 2020
by
Sean Kelly
The Excise Tax Act provides that generally, the supply of goods made in Canada is taxable for GST/HST purposes, and it is the responsibility of the supplier to collect the applicable GST/HST on taxable supplies.
December 4, 2019
by
Sameer Noormohamed
GST/HST and QST registrants that are financial institutions may be required to file a GST 111 – Financial Institution Annual Information Return. Those that are also selected listed financial institutions (SLFIs) are required to file an SLFI return.
April 4, 2019
by
John F. Oakey
The common belief that the sale of a used residential house is always exempt from the Goods and Services Tax / Harmonized Sales Tax (GST/HST) is not absolutely correct.
December 28, 2018
by
John F. Oakey
Orthodontists have faced difficulties in complying with the Goods and Services Tax (GST) since it was introduced on January 1, 1991.
March 13, 2018
by
Sean Kelly, Jason Melo
Foreign companies, individuals and organizations who provide goods and services to customers in Canada should consider whether their business activities in Canada invoke a requirement to register for the Goods and Services Tax / Harmonized Sales Tax (GST/HST).
October 3, 2017
by
Daryl Hooley,
Serene Lee
Canada has more than 170,000 charitable and not-for-profit organizations, 85,000 of which are registered with the Canada Revenue Agency (CRA). For these registered charities, their supply of property and services is often exempt from GST/HST. Charities that also make taxable supplies of property and services are required to collect GST/HST on those supplies where they are GST/HST registrants (i.e. not small suppliers or small suppliers that have chosen to voluntarily register for GST/HST purposes).
September 13, 2017
by
Betsy Qin, Sameer Noormohamed
The Department of Finance’s September 8, 2017 release of draft GST/HST legislation introduces the newly defined “investment limited partnership” and a series of legislative amendments that will apply to such partnerships. The Department of Finance is accepting comments on the draft legislative proposals until October 10, 2017.
April 27, 2017
by
Daryl Hooley,
Betsy Qin
The 2017 Federal Budget proposes to amend the definition of a “taxi business” in the Excise Tax Act (ETA) effective July 1, 2017, to ensure that ride-sharing services, such as Uber, share the same GST/HST consequences as taxi services. The proposed amendments would require all Uber drivers to register for GST/HST purposes and to charge GST/HST on their fares.
February 13, 2017
by
Daryl Hooley,
Betsy Qin
It’s that time of year again – as an employer, what should you know about taxable benefits and the GST/HST? Did you know the GST/HST impacts not only the calculation of certain employee taxable benefits, but also the calculation of the employer’s net tax for GST/HST reporting purposes?
October 27, 2016
by
Daryl Hooley
Recent decisions of the Tax Court of Canada (TCC) in University of Calgary v. R. and University of Alberta v. R., (the university cases) have provided some clarity for determining input tax credit (ITC) entitlements in respect of land and buildings, or improvements to such property, that are acquired for use partly to make taxable supplies and partly to make exempt supplies.
July 28, 2016
by
Daryl Hooley
In Budget 2016, the Department of Finance announced changes to simplify the special reporting requirements for home builders, with taxable sales of new or substantially renovated housing that are “grandparented” under the transitional Harmonized Sales Tax (HST) rules (i.e. when a province joins the HST or increases the provincial component of the HST).
November 25, 2015
by
Diana Cameron
The nil consideration election for GST/HST purposes in section 156 of the Excise Tax Act (ETA) was updated recently with changes in effect Jan. 1, 2015. Section 156 allows members of a closely related group to treat certain taxable supplies between them as having been made for no consideration. Essentially, the election eliminates the need to collect and remit taxes by one member and then claim an input tax credit by the other member, which can sometimes result in cash flow issues, particularly with large transactions and differing reporting periods.
