The Canada Revenue Agency (the “CRA”) requires all taxpayers to file income tax returns every year. Since Uber, and other similar companies, have arrived on the scene there have been questions about the tax implications of working for a company…

The harmonized sales tax (“HST”) is a consumption tax in Canada and it combines the goods and services tax (“GST”) and provincial sales tax (“PST”) . It is most often used in provinces where both the federal goods and services…

Uber drivers are considered self-employed in Canada, otherwise known as an independent contractor. As such, Uber drivers must keep records of the money they receive from Uber, and all of their expenses so that they may prepare and file proper…

HST stands for “harmonized sales tax”. A harmonized sales tax is otherwise known as a consumption tax, which is a tax levied on spending (think of goods and services). Typically, this tax is used in provinces where both the federal…

The marginal tax rate is the percentage of tax you will pay, which is based on the amount of income you earn. The more money you make, the more tax you are expected to pay. This approach is otherwise known as…

The Canada Revenue Agency (“CRA”) can charge interest and penalties for a variety of reasons. Perhaps more worrisome is the alarming rate that penalties and interest can accrue at thereafter. Interest and penalties can easily accumulate to amounts greater than…

A Principal Residence audit occurs when the Canada Revenue Agency audits a taxpayer for the sale of one, or multiple properties where no taxes are paid. No taxes are paid because the taxpayer is claiming the Principal Residence Exemption, which…

GST/HST New Home Housing Rebate When you buy a new property in Canada, you must pay GST or HST on the purchase. However, purchasers can receive a rebate of some of the GST/HST paid, subject to certain conditions. In simple…

Exporting Vehicles – GST/HST and Input Tax Credits The sale and export of vehicles from Canada should theoretically yield GST/HST refunds. These are known as Input Tax Credits (ITCs). The reason for this is because you would have paid GST/HST…

What is Director’s Liability? In Canada, corporations are considered to be separate legal entities with their own assets and liabilities. It is a basic principle that employees, officers, and directors are not personally responsible for the debts incurred by their…

GST/HST Audits after already being Audited Subject to exceptions, Canadians running businesses are expected to collect and remit GST/HST to the government on most of their sales. Sometimes, though, they may not even know that they were running a business…

The Canada Revenue Agency has recently received a court order from the Federal Court allowing them to collect a broad range of data from paypal. The service is frequently used by relatively informal businesses, particularly those based online, to make sales…

The Liberal Government continues to work towards legalizing marijuana throughout Canada by releasing proposed amendments to the Excise Tax Act concerning the production and sale of legal cannabis. On April 13, 2017, the Liberal Government introduced to Parliament Bill-45, “an Act…

With the recent explosion of marijuana dispensaries in Vancouver and Toronto, the Canadian government is having a hard time coming up with new laws to regulate the industry. One of the most complicated areas to deal with in regards to the dispensaries…

According to subsection 123 of the Excise Tax Act, a precious metal is part of the definition of “Financial Instrument”. This is important because “Financial Instruments” are not subject to GST/HST on their sale.     Precious Metals Precious metals are bars,…