Documentary Evidence is Not a Suggestion
Documentary Evidence is Not a Suggestion Assessed for Tax Owing in the Past 90 Days? This recent tax court case illustrates that reliable records need to be kept throughout the business year and not just considered annually for tax purposes. These words from the judge were particularly biting in making the tax liability worse by […]
Tax Court Round III
Tax Court Round III This morning I visited the Tax Court of Canada again to observe. Every time I go I learn a ton and feel exhilarated by watching the process of justice in action. There were three cases on the docket this morning: I attend the court to learn and see what I can […]
When is a Residential Unit not a Residential Unit?
When is a Residential Unit not a Residential Unit? Imagine a scenario where a business owner purchases a used residential complex and begins running his business in it and for no other purpose. Is the subsequent sale for GST/HST purposes an exempt sale of a residential complex or a taxable sale of commercial property? For […]
Hiding side hustle income
Hiding Side Hustle Income “Around 50 per cent plan to hide some or all of their side earnings from the tax man, according to the survey“. This article about tax avoidance/evasion gives some insight into the consequences of hiding income: “Soucie offered a hypothetical. Let’s imagine that a side-hustler — let’s call him Kevin — chooses (to) […]
Is my real property taxable for GST/HST purposes?
Is my real property taxable for GST/HST purposes? The way to understand section 9 of Part I of Schedule V is that it is the provision that generally exempts all real property other than a residential complex or farmland (which have their own provisions) subject to exclusions. The first and most important exclusion is whether […]
Bare Trusts and the GST/HST
Bare Trusts and the GST/HST I remember the first time I heard the term bare trust and had no inkling of what it meant. For simplicity, a trust is defined as a person under subsection 123(1) of the Excise Tax Act. A bare trust is a trust that holds the legal title to property and […]
Who pays the tax with platforms like Airbnb, Etsy and others?
Who pays the tax with platforms like Airbnb, Etsy and others? On July 1, 2022, the grace period for non-resident digital economy companies like Airbnb, Etsy, Turo, and many others, elapsed and they were required to register for GST/HST under Subdivision E. These platforms began collecting and remitting tax, and confusion soon followed among suppliers […]