Tax Alert – Canada

Tax Alert – Canada

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Tax Alerts cover significant tax news, developments and changes in legislation that affect Canadian businesses.

Dramatic change in customs policy on transfer pricing downward adjustments
No. 04, 23 January 2015

The Canada Border Services Agency has removed a longstanding barrier to filing import duty refund claims pursuant to downward transfer pricing adjustments based on post-import amended declared values. This is a dramatic change in policy and very good news for importers of dutiable goods purchased in related-party transactions.

Invoices of accommodation: Important Federal Court of Appeal decision in Salaison Lévesque Inc.
No. 03, 20 January 2015

On 17 December 2014, the Federal Court of Appeal upheld the Tax Court of Canada's decision in the case of Salaison Lévesque Inc., which allowed the taxpayer's appeal for input tax credits that had been disallowed by Revenu Québec in respect of the goods and services tax paid to certain placement agencies that had not remitted the GST collected to the tax authorities.

OECD releases public discussion draft on international VAT-GST guidelines
No. 02, 13 January 2015

Recently, the Organisation for Economic Co-operation and Development (OECD) released a discussion draft in connection with the international value-added tax (VAT)/goods and services tax (GST) guidelines. Comments on the discussion draft are to be submitted by 20 February 2015.

OECD releases five new BEPS discussion drafts
No. 01, 6 January 2015

In December 2014, the Organisation for Economic Cooperation and Development (OECD) released five discussion drafts on income tax topics it will focus on in 2015 as part of its base erosion and profit shifting (BEPS) project. It provided a short period for the submission of comments and announced plans for public consultations.

Ontario surtax relief for mutual fund trusts
No. 63, 15 December 2014

On December 11, 2014 the Ontario Ministry of Finance issued a comfort letter in respect of the application of subsection 105(3) of the Taxation Act, 2007 (the Act) to mutual fund trusts (MFTs). The comfort letter was issued as a response to an inequality that arises between the capital gains refund mechanism (CGRM) and the amount of surtax payable by a trust.

Quebec releases amendments to its mining tax regime
No. 62, 15 December 2014

On 4 December 2014, Bill 13 received first reading in the Quebec National Assembly and is substantively enacted for IFRS financial reporting purposes as of that date. The legislation contains amendments to the province's Mining Tax Act.

Quebec R&D tax credit assistance further restricted
No. 61, 10 December 2014

On 2 December 2014, Quebec Finance Minister Carlos Leitão gave an update on Quebec's economic and financial situation and announced several reductions in tax expenditures, including decreases to Quebec's R&D tax credit assistance.

Quebec 2014 fall economic update
No. 60, 6 December 2014

On 2 December 2014, Quebec Finance Minister Carlos Leitão gave an update on the province's economic and financial situation. The update contains several tax measures affecting individuals and corporations.