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Provincial Sales Tax Registration Requirements for Businesses Located Outside of the Province

Provincial Sales Tax Registration Requirements for Businesses Located Outside of the Province
March 14, 2024
| Taxes

For businesses beginning to provide goods and/or services into a new jurisdiction, a frequent question is whether they have an obligation to register and collect sales tax. An often-underappreciated aspect of the Canadian federal value added tax system was the decision to harmonize the provincial sales tax with the administration of the federal goods and services tax, together forming GST/HST. Currently five provinces have opted for their provincial sales tax to form part of the federal GST/HST system (Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island). The GST/HST system requires one registration and return that covers the federal tax and the provincial tax for each of the harmonized provinces.

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State Nexus for Sales Tax

State Nexus for Sales Tax
March 14, 2024
| By
| Taxes

Nexus refers to a connection or presence in a state that gives the state authority to require a business to collect and remit sales tax on transactions within that state. Historically, physical presence, such as having a store or warehouse in a state, was the primary factor in determining nexus. However, with the rise of e-commerce and remote sales, the physical presence requirement has become less clear, leading to confusion for both businesses and states.

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Tax Administrative Changes from Bill C-47

Tax Administrative Changes from Bill C-47
February 9, 2024
| Taxes

Bill C-47, Budget Implementation Act, 2023, No. 1 was enacted on June 22, 2023, after receiving Royal Assent. Bill C-47 outlines various tax measures such as the extended mandatory disclosure rules, extension of residential property flipping rule to assignment sales, and new reporting requirements for digital platform operators.

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US Estate Issues for Canadian Residents

US Estate Issues for Canadian Residents
January 29, 2024
| By

Whether you are a US resident or not, it is important that all individuals understand US estate tax and how it can affect them upon death. Estate taxes are taxes that are imposed on the transfer of a person’s estate after their death. These taxes can be imposed by both the United States government and the Canadian government, and they can significantly impact the value of an estate.  

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Updates to the Underused Housing Tax (UHT) Requirements

Updates to the Underused Housing Tax (UHT) Requirements
December 18, 2023

Initially proposed during the 2021 Federal Budget, the Underused Housing Tax (“UHT”) and the commentary around it has continued to evolve over recent months. Intended as a tax on vacant or underused housing in Canada owned by non-residents, the UHT has attracted a lot of additional attention primarily due to its wide-reaching filing requirements and severe late filing penalties. 

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Market-Based Sourcing in State Corporate Income Taxes

Market-Based Sourcing in State Corporate Income Taxes
November 9, 2023
| By

The division of income for state corporate income tax purposes is an important consideration for businesses operating in multiple US states, including Canadian businesses expanding into the US. For more information on the corporate income tax considerations for Canadian companies expanding into the US, we recommend reviewing our post on this topic, available here

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2023 Minimum Wage Increase

2023 Minimum Wage Increase
September 28, 2023

It’s that time of year again!  It is time for the annual minimum wage increase.  On October 1st, 2023the minimum wage will increase to $16.55 per hour.  These increases are tied to the Ontario Consumer Price Index for 2023.

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Enhanced GST Rental Rebate 

Enhanced GST Rental Rebate 
September 21, 2023

On September 14, 2023, Prime Minister Justin Trudeau announced plans to introduce new legislation to enhance the GST Rebate on new rental apartments. The new legislation is intended to incentivize construction of new rental homes and improve housing affordability for Canadians. 

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Corporate Income Tax Considerations for Canadian Companies Expanding to the United States 

Corporate Income Tax Considerations for Canadian Companies Expanding to the United States 
September 19, 2023
| By
| Taxes

Successful Canadian businesses commonly expand into the United States to continue their revenue growth. Many of these Canadian-founded companies do not realize that extending business activities to the United States could potentially expose the company to US tax implications, which are not considered in advance. Tax planning and structuring are critical considerations when expanding across borders so you can focus on your business growth instead of retroactively defending against possible assessments and potentially substantial penalties.  

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Tax Court Decision Confirms Alternative Approach in Responding to CRA

Tax Court Decision Confirms Alternative Approach in Responding to CRA
June 20, 2023
| Taxes

A recent court case may have a significant impact on the way GST/HST registrants resolve GST/HST audits and examinations, confirming the general approach from the Canada Revenue Agency (“CRA”) is often overly strict. As you may know, registrants charge GST/HST on their sales and pay GST/HST on their purchases, with the difference being remitted to the CRA or eligible to claim back as a refund. If you have had the pleasure of dealing with CRA review, you will know that documentation is often one of the most prevalent issues under audit.

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