Category Taxation in Canada
March 25, 2017 Taxation in Canada
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 ...Read More
March 17, 2017 Taxation 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...Read More
March 5, 2017 Taxation in Canada
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...Read More
February 14, 2017 Taxation in Canada
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...Read More
January 9, 2017 Taxation in Canada
The latest data made available by the Ministry of Finance of Canada has shown that the number of property transactions involving foreign buyers in the province of British Columbia has fallen significantly since the introduction of a tax on foreign purchases.
Approximately 5 months ago the province of British Columbia introduced a 15 percent tax on the purchase of property by foreign buyers.
The tax was intended to rein in widespread speculative purchases by foreign investors.
Purchases by foreign buyers who do not live in Canada has been a factor widely attributed to significant rises in resi...Read More