Tax & Trade Blog

---

NOTICE OF ASSESSMENT NOT RECEIVED. CAN I APPEAL?

TAX COURT SETS FOUR-STEP PROCESS FOR GETTING NOTICES OF OBJECTION BACK ON TRACK

Download a PDF copy of this Blog here.

When it comes to filing a Notice of Objection (an “Objection”) in respect of a Notice of Assessment (an “NOA”) for GST/HST or income tax matters – or many other matters involving federal taxes – most taxpayers will know that they generally have a 90-day window to file that Objection.

---

EXCISE ACT 2001 RECORDKEEPING REQUIREMENTS

MORE THAN MEETS THE EYE — CRA’S STRINGENT REQUIREMENTS

Download a PDF copy of this Blog here.

The Excise Act, 2001 (“EA 2001”) governs the taxation and regulatory framework applicable to specified goods, including tobacco, wine, spirits, and, more recently, vaping products. Recordkeeping requirements under the EA 2001 are among the most stringent in Canadian tax legislation. In our experience, CRA is increasingly relying on imperfect or incomplete records as a basis for assessing additional duty, interest, and, in some cases, significant penalties.

In this Indirect Tax Report, we review the statutory requirements for books and records under the EA 2001 and highlight key compliance risks and practical traps for industry participants.

---

WHEN IS CANNABIS, CANNABIS?

CRA TAXING TRIM LIKE CANNABIS

Download a PDF copy of this Blog here.

Cannabis cultivators and producers will generally be aware of the two-tier flat tax that applies to the production of cannabis products, such as pre-rolls. That is, a higher tax rate of $0.25 per gram applies to flowering material, while a lower tax rate of $0.075 per gram applies to non-flowering material – putatively on the basis that it is far less potent in terms of cannabinoid content (THC and CBD).

---

HST CANNOT BE SET OFF AGAINST DEBTS OWNING

BCAA CONFIRMS HST CANNOT BE SET OFF AGAINST SUPPLIER’S DEBTS

Download a PDF copy of this Blog here.

Many commercial agreements include broad rights of set-off, which sophisticated businesses use to net out liabilities between parties. While that seems straightforward in commercial terms, businesses run into problems when applying this practice to GST/HST. Under the Excise Tax Act, HST collected – or collectible – by a supplier is NOT the supplier’s money to begin with. Rather, it is money held in trust for the Crown.

---

GST/HST REGISTRATION FOR CONDO CORPS

WHEN TO REGISTER, TAXABLE STATUS OF SUPPLIES, CAN BE TRICKY QUESTIONS

Download a PDF copy of this Blog here.

Property managers and board directors of condominium corporations (“Condo Corps”) often assume that registration for GST/HST under the Excise Tax Act (“ETA”) is not required because supplies made to residential condominium units are exempt of GST/HST.