Category Taxation in North America

GST Applies to Uber in Canada

March 25, 2017 Taxation in Canada

Taxes on Uber ridesOTTAWA – Uber users will soon be coughing up a little bit extra for their rides, as the Canadian government slaps GST on all ride-sharing services.

Uber and similar applications and services will soon fall under the scope of the Canadian GST system, according to an announcement made during the release of the latest national budget.

Currently, Uber and similar ride-hailing services in Canada do not fall under the scope of GST, unlike traditional taxis services.

According to the Finance Minister of Canada Bill Morneau, the move to apply GST to Uber rides already has precedent, as traditional taxis are taxed, meaning that the moves is “consistent with what Canadians expect”.

He added that the change is part of the government’s efforts to make the tax system fairer, more consistent, and ...

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Sugar Tax Would Save Canadian Lives

March 17, 2017 Taxation in Canada

Sugar Taxes in CanadaOTTAWA – Sugar taxes would save billions in healthcare spending, while also raising tax revenues, and saving hundreds of thousands of lives in Canada.

New research completed at the University of Waterloo has indicated that a 20 percent tax on sale of sugary drinks in Canada could save thousands of lives while also raising tax revenues.

It was concluded that if a tax of 20 percent was applied on the sale of all sugary drinks, including energy drinks and selected fruit juices, then the government would see tax revenues rise by CAD 1.7 billion per year, equating to approximately CAD 43.6 billion over the next 25 years.

Along with the extra tax revenues, the government would see savings of CAD 11.5 billion over the same timeframe, due to reduced expenditures on healthcare services.

The drop...

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Tax Man Ignores Postal Services in Canada

March 5, 2017 Taxation in Canada

Taxes on postal deliveryOTTAWA – Canadian tax authorities appear to have a bias against express courier companies, and are likely to forgo taxing goods if they are sent via regular post.

The results of new research prepared by the research firm Copenhagen Economics on behalf of the logistics company UPS, has shown that tax authorities in Canada apply vastly differing tax rules on e-commerce shipments, based on the type of mail carrier that delivers the package.

It was estimated that tax authorities only apply sales tax on a quarter of packages which are sent to a Canadian recipient via a postal service, but tax each and every package that is sent via a express courier such as DHL or UPS.

Similarly, duties are only applies in six percent of cases where goods are sent via the postal system, but in 98 percent of c...

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Canada Sees a $50 Billion Tax Gap

February 14, 2017 Taxation in Canada

Canadian Tax GapOTTAWA – Canadians skip or evade as much as a quarter of all taxes owed in the country, according to the results of new research.

The results of new research completed by the Conference Board of Canada has indicated that the tax gap in Canada is now sits between CAD 8 billion and CAD 50 billion per year.

The tax gap is a measure of how much tax a government should be earning and how much tax is ultimately collected.

According to the Conference Board of Canada, tax gaps are mostly commonly caused by tax evasion, aggressive tax avoidance, non-payment of tax liabilities, and mistakes made by taxpayers, regardless of whether they are intentional or accidental.

It was noted that the tax gap across Canada may actually be much higher than calculated, as the study only concentrated on federal tax...

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Seeing Poverty Doesn’t Lead to Sympathy

January 18, 2017 Taxation in USA

Poverty and taxesWASHINGTON D.C. – Seeing poverty does not make people more sympathetic or willing to support taxes on the rich.

A new study published in the journal Proceedings of the National Academy of Sciences of the United States of America has shown that exposure to poverty makes individuals less willing to support taxes on wealthy taxpayers.

The study was based on a set of controlled experiments where participants were asked to sign a petition calling for extra taxes on extremely wealthy individuals.

In the study the environment was controlled to vary the levels of poverty seen at the time that the participants were asked to sign the petition.

It was found that exposure to poverty resulted in a decreased willingness by participants to support increased taxes on the incomes and wealth of well-off ...

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