Category Taxation in Canada

Canada’s Pot Tax Will Fund Education

November 14, 2017 Taxation in Canada

Marijuana TaxOTTAWA – Canada’s tax on legal marijuana will help stamp out the illegal drug trade, while also potentially raising funds for public education about the harm caused by drugs.

On November 13th a Minister of Parliament of Canada Bill Blair called for the tax revenues from the country’s upcoming legalization of marijuana to be used to fund public education about the drug.

Under the current plan for the legalization of marijuana, the federal government intends to levy a tax on the sale of marijuana, with a rate of 10 percent of the retail price of marijuana or CAD 1 per gram, whichever is higher.

It is believed that the tax could garner tax revenues of as much as CAD 1 billion per year.

The MP claims that the government has a responsibility now of ensuring that Canadians know and underst...

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Canada Cuts Business Tax

October 18, 2017 Taxation in Canada

Small business in CanadaOTTAWA – Small businesses in Canada will see their tax bill slashed significantly in the years to come, as the government sets out to let them “keep more of their hard-earned money”.

The government of Canada has announced that it will be dropping the rate of income tax to be paid by small businesses, making the rate the lowest in the G7.

From January 1st 2018 the rate of income tax paid by small businesses will drop to 10.5 percent.

Further, one year later the rate will be dropped to an even lower 9.5 percent.

It is expected that the two measures together will result in tax savings of as much as CAD 2.9 billion for small businesses over the 2022 year.

When combined with the provincial taxes which will also be paid by small businesses, the tax rate will average out to a level of 12...

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Trudea Says No to Internet Tax

June 16, 2017 Taxation in Canada

Canadian internet taxOTTAWA – Plans for a tax on high-speed internet have been quickly shutdown by the Prime Minister of Canada, following a proposal for such a tax by a national heritage group.

On June 15th the Prime Minister of Canada Justin Trudeau stated that the government would not support the recent proposal to instate a tax on high-speed internet services.

The proposal was raised by the Canadian Heritage parliamentary committee, and called for a 5 percent tax to be instated on high speed internet connections.

The tax will be applied to “broadband internet providers”, but their offered basic services packages would be exempt from the tax.

Due to the targeting of the tax, it has come to be called a “Netflix Tax” as it will be more likely to impact high-end users, and not individuals who want acces...

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Canada and UK Shut Down Carousel Scheme

June 15, 2017 Taxation in Canada

Carousel CanadaONTARIO – Tax investigators hope they have put an end to a CAD 50 million carousel scheme reaching from the UK to Canada.

The tax authorities of Canada and the UK have revealed that this week they carried out simultaneous raids on addresses associated with large-scale tax fraud across the two countries.

Accusations of fraud revolve around an alleged CAD 52 million in false tax refunds obtained by a group of 11 people based in the UK.

The fraud is understood to be a “carousel scheme”, which has become common in the EU and UK, but is still relatively rare.

The scheme involves a series of businesses, which purchase goods from each other, with some businesses in the chain claiming refunds on the GST paid on goods, without ever paying any GST themselves.

Often the goods are passed continual...

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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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