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Sales
Tax

CBA National Commodity Tax, Customs and Trade Section

CBA Commodity Tax, Customs and Trade Section articles are published under the banner Sales Tax. Members interested in posting articles are encouraged to send them to the Section’s editors.

Editors: Allan Gelkopf and Maryse Janelle

Today
Today

End of debate: GST/HST deemed trusts ineffective against secured creditors

  • June 17, 2019
  • Jean-Guillaume Shooner and Joseph Reynaud

In a unanimous decision delivered from the bench, the SCC recently reversed the decision of the Federal Court of Appeal in Canada v. Callidus Capital Corporation. The SCC agreed with the dissenting judge on the FCA panel that the original ruling of the Federal Court, dating from 2015, was correct.

Commodity Tax, Customs and Trade

Don’t forget about GST when resolving legal disputes

  • May 02, 2019
  • John Bassindale

Section 182 of the Excise Tax Act generally deems any payment made to a registrant as a consequence of a breach, modification, or cancellation of an agreement (other than as consideration for a supply), to be a taxable supply. This rule, in effect, means that a payment to a supplier by a recipient to compensate for a breach of an agreement to supply property or services, will generally be deemed to include GST/HST.

Commodity Tax, Customs and Trade

Saskatchewan PST exemption reinstated for oil and gas equipment

  • March 21, 2019
  • Allan Gelkopf, Zvi Halpern-Shavim and Amy Lee

The Saskatchewan Ministry of Finance has reinstated a previously repealed provincial sales tax exemption on permanently mounted equipment used in the oil and gas industry. As a retroactive change, PST that had been paid on now-exempt equipment can be claimed back as refunds (as tax paid in error).

Commodity Tax, Customs and Trade

Unexpected tax leakage – financial institutions beware!

  • January 31, 2019
  • Jean-Guillaume Shooner

In a decision handed down on May 29, 2018, the Tax Court of Canada dismissed an appeal by a subsidiary of a leading Canadian bank to claim input tax credits for expenses attributable to certain exported supplies made by it to the bank’s branches located outside Canada.

What can go wrong if you forget about GST/HST

  • December 10, 2018
  • Jean-Guillaume Shooner

When you’re negotiating a lump-sum settlement, it’s important to take GST/HST obligations into effect, says Jean-Guillaume Shooner in his review of Automodular Corporation v General Motors of Canada Limited, where the parties forgot to factor in taxes.

Commodity Tax, Customs and Trade

New GST/HST rules for collecting tax on sales of carbon emission allowances

  • November 15, 2018
  • Jean-Guillaume Shooner and Julie D’Avignon

As Canada’s carbon emissions regime continues to develop, issues of taxation periodically arise that require refinements to related tax rules. To better align Canadian carbon taxation with international standards, the Department of Finance announced an adjustment to the rules for GST/HST collection from the sale of carbon emission allowances.

Commodity Tax, Customs and Trade

Get tax advice on real estate purchases

  • November 15, 2018
  • Robert G. Kreklewetz and Steven Raphael

Unless specifically exempted, the supply of real property situated in Canada is generally taxable under the Excise Tax Act.

Commodity Tax, Customs and Trade

Are secured creditors liable for retail customers’ GST-HST debt?

  • October 17, 2018
  • Robert G. Kreklewetz and Steven Raphael

A Federal Court ruling on section 222 of the Excise Tax Act in Canada v Toronto Dominion Bank could have a chilling effect on lenders. The ruling essentially says a secured creditor becomes personally liable for the individual’s tax debt even if it was still unaware of the tax debt when the secured loan was repaid. Robert G. Kreklewetz and Stephen Raphael review the case.

Commodity Tax, Customs and Trade