Tax & Trade Blog

---

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.

---

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.

---

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.