Determining The Taxability Of A Supply For GST/HST
The Tax Court of Canada decision in A-Supreme Nursing & Home Care Services Inc. v. The King, 2023 TCC 39 (“ANHC”), involved a CRA audit of a staffing agency in the business of supplying healthcare workers, resulting in a reassessment for over $1,000,000 in GST/HST. The decision is of interest as...
Tax Court offers guidance for claiming Input Tax Credits, ‘tax paid in error’ GST/HST rebate
In general, when a business pays for an expense (e.g., business start-up costs, rent, professional fees) they also pay GST/HST on that expense. Subsequently, they can apply for Input Tax Credits (ITC) to recover the GST/HST paid. However, upon review/audit, Canada Revenue Agency (CRA) is relatively strict...
The Proposed Residential Property Flipping Rule
The Proposed Residential Property Flipping Rule
The Residential Property Flipping deeming rule introduced in the 2022 Federal Budget will not apply if the disposition of residential property is on account of a “life...
Denied ITCs & the GST/HST Rebate For ‘Tax Paid In Error’
Subcontractor Expenses, Denied ITCs And The GST/HST Rebate For ‘Tax Paid In Error'
In Mediclean Incorporated v. The Queen, 2022 TCC 37 (CanLII), the Tax Court of Canada provides guidance for successfully claiming the...
Input Tax Credits (GST/HST)
Input Tax Credit
What is an Input Tax Credit for GST / HST?
Input Tax Credits (“ITC”) can be claimed to recover the GST/HST paid on business expenses. In general, a business can receive a refund for the GST/HST paid on...
Agent-Principal Relationships and GST/HST Audits
CRA Audits of Canadian Sales to Foreign Entities
Agent-Principal and CRA GST/HST Audit
CRA audits have targeted Canadian sales to foreign entities. As a result, Canadian entities are denied GST/HST Input Tax Credits (“ITC”) based on an assumed agency/agent relationship...