Indirect Tax
Unlock the potential of precision in your indirect tax strategy — navigate complexity, maximize recoveries, and thrive within the ever-evolving tax environment.
Canada operates within a complex indirect tax system. While some provinces have harmonization between federal and local indirect taxes, others operate with separate tax systems. This can be a challenge for domestic and foreign corporations operating in Canada.
Our Indirect Tax team is dedicated to providing comprehensive solutions tailored to your specific challenges. From ensuring compliance to adapting to legislative changes, MNP is your partner at every stage of the process, ensuring your business thrives in Canada's dynamic tax environment.
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What are your challenges?
Effective documentation to achieve compliance
The indirect tax system in Canada can be complex, with different rules and rates across provinces. You need to navigate these complexities to ensure compliance with various regulations.
Input Tax Credits (ITCs)
You may be able to claim ITCs to recover the GST/HST paid on business expenses. However, ensuring accurate documentation and compliance with ITC rules can be challenging, and errors may result in financial implications.
Cross-border transactions
If you engage in cross-border transactions, you may face additional challenges related to international tax rules, customs duties, and compliance with both Canadian and foreign tax regulations.
Changes in legislation
Tax laws and regulations are subject to change, and you need support in staying informed about any legislative updates that may impact your indirect tax obligation
GST/HST audits
During audits conducted by the Canada Revenue Agency (CRA), businesses like yours may face challenges. Ensuring accurate record-keeping and compliance with tax regulations is essential to avoid penalties and fines.
How we can help
Developing and reviewing systems and procedures
Investing in professional tax advice and advanced software tools is essential to navigate the intricacies of the indirect tax system. Our team will help develop and regularly review comprehensive policies and procedures. This proactive approach fosters compliance awareness through staff training on evolving tax regulations, ensuring your business is well-prepared.
Creating indirect tax plans (domestic or foreign)
To effectively manage ITCs or handle cross-border tax issues, you need a comprehensive plan that reflects your business. Our team specializes in crafting customized plans aligned with the unique aspects of your operations. This strategic approach ensures you are well-positioned to optimize ITCs and overcome challenges associated with cross-border transactions.
Preparing Canada Revenue Agency ruling requests
Seeking official guidance and clarification from the Canada Revenue Agency (CRA) on specific tax matters will help ensure compliance and manage uncertainties. Our service involves preparing CRA ruling requests tailored to your situation and providing official guidance that aligns your actions with tax laws and regulations.
Adapting your plans to legislative changes
Our team constantly monitors legislative changes to help you act accordingly and update your respective policies and procedures. We ensure you remain well informed about the latest tax laws and compliant with evolving legislative standards.
Frequently asked questions
You must register for GST/HST if your worldwide taxable supplies exceed $30,000 in four consecutive calendar quarters or your total revenue from taxable supplies in Canada exceeds $30,000 in a single calendar quarter.
GST is a federal tax, and HST is a harmonized tax combining federal and provincial components. HST is applicable in provinces that have harmonized their sales tax with the GST.
Calculate GST/HST by multiplying the applicable rate (either federal or harmonized) by the sale amount. Remit the collected taxes to the Canada Revenue Agency (CRA) through regular filing periods.
Input Tax Credits (ITCs) allow businesses to recover the GST/HST paid on eligible business expenses. By claiming ITCs, businesses can reduce their net tax liability. Eligible expenses include purchases of goods and services used during commercial activities.
Businesses can claim ITCs to recover GST/HST paid on business expenses. To maximize ITCs, ensure proper documentation of eligible expenses and adhere to CRA guidelines.
Cross-border transactions may involve GST/HST on imports and exports. Businesses need to understand the applicable rules and exemptions and consider the impact of customs duties.
Filing frequency depends on your annual taxable supplies. Regular filers file annually, quarterly, or monthly. The deadline is one month after the end of the reporting period.
Penalties for non-compliance can include fines, interest, and prosecution. Ensuring accurate record-keeping and compliance with tax laws is crucial to avoid penalties.
Prepare by maintaining organized and detailed records. During an audit, the CRA will review financial records, invoices, and supporting documentation to ensure compliance.
Depending on the nature of your business, you may be eligible for specific rebates or incentives. Consulting with a tax professional can help identify available opportunities.
Contact our Indirect Tax Team
Heather Weber CPA, CGA
Partner, Indirect Tax
Heather Weber, CPA, CGA, is the leader of MNP’s Indirect Tax Group. Since 2001, Heather has specialized in assisting her clients with all their indirect taxation needs, including: GST, PST, Excise Taxes, Property Taxes and more. Working closely with her team, Heather serves business owners, Indigenous organizations, Hutterites and clients in the health care, winery, construction and public company sectors.
Heather’s in-depth understanding of indirect tax issues helps her develop customized tax minimization strategies for her clients. She also helps organizations capture the compliance information they need to claim all the benefits they are entitled to. Heather also has extensive experience in real property and cross-border transactions.
Through extensive dealings with both the federal and provincial governments as an auditor for the Canada Revenue Agency, Heather has the insight and experience her clients need when dealing with government authorities at the audit and appeal stage.
Before earning her Certified General Accountant (CGA) designation in 1995, Heather received her Bachelor of Business Administration from Simon Fraser University in 1991. She is also a member of both the Kelowna Tax Discussion Group and the Vancouver Commodity Tax Discussion Group.
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