GST/HST

CRA GST/HST Audits: Why the "Builder" Characterization Matters in Tax Litigation For Canadian real estate investors, developers and property owners, few GST/HST issues can have consequences as significant as whether a taxpayer is a “builder” for purposes of the Excise Tax Act, R.S.C. 1985, c. E-15 (the “ETA”).Builder...

Fadali v. His Majesty the King, 2026 TCC 86 & Paragraph 123(1)(f) of the Excise Tax Act The Tax Court of Canada’s recent decision in Fadali v. His Majesty the King, 2026 TCC 86   illustrates the importance of paragraph 123(1)(f) of the Excise Tax Act, R.S.C., 1985, c. E-15, which provides an exception to the definition...

Director's Liability: Madison v. Canada, 2012 FCA 80 & Canada v. Colitto, 2020 FCA 70 When a corporation fails to remit trust amounts such as payroll source deductions, the Canada Revenue Agency’s (“CRA”) recovery options do not end with the company itself. For example, according to section 227.1 of the...

Business vs. Adventure or Concern in the Nature of Trade “Adventure or concern in the nature of trade” is not defined in the  Excise Tax Act, R.S.C., 1985, c. E-15 (“ETA”). In Aviva Canada Inc. (formerly CGU Group Canada Ltd.) v. The Queen, 2006 TCC 57 , the Court held that nothing in the GST/HST scheme requires the phrase...

Subsection 296(2.1) of the Excise Tax Act & Unclaimed GST/HST Rebates Subsection 296(2.1) of the Excise Tax Act, R.S.C., 1985, c. E-15 (“ETA”)  allows the Canada Revenue Agency (“CRA”), in certain circumstances, to recognize an eligible GST/HST rebate that was not formally claimed by a...

Section 257 - Rebate for Taxable Sale of Real Property by a GST/HST Non-Registrant A person who carries on a business is normally required to register for GST/HST, charge and remit it to the Canada Revenue Agency (“CRA”). A difficulty arises, for example, where a person makes a taxable sale of real property while...

The "Business" Test in Happy Valley Farms Ltd. v. The Queen, 1986 CanLII 7434 (FC) If income is characterized as business income then 100% is subject to taxation. Only 50% of a capital gain is subject to taxation. Determining whether the business income characterization applies requires referring to the definition of a...

Interlining and GST/HST In Canada’s transportation and logistics industries, interlining is a widespread practice that aids the efficient transfer of freight over long distances. However, understanding the tax implications—specifically around GST (Goods and Services Tax) and HST (Harmonized Sales Tax)—is crucial for...

Swift v. The Queen, 2020 TCC 115 & Coates v. The Queen, 2011 TCC 74 & GST/HST In Ontario, for example, many taxpayers bought and/or renovated homes consecutively during the housing upturn. Consequently, it has been common for Canada Revenue Agency (“CRA”) to target the consecutive purchase and sale of 3 or 4 homes...

March 21, 2025 Government Announcement re: GST/HST and Corporate Tax Relief for Businesses Canada Revenue Agency (CRA) is implementing relief from GST/HST and corporate tax remittances for approximately 3 months.According to the government’s announcement businesses can “efer corporate income tax payments and...