It is well-known that the Canada Revenue Agency (the CRA) has broad audit and information gathering powers under the Income Tax Act (Canada). Subject to the existence of solicitor-client privilege, it is not uncommon for...more
The Tax Court of Canada recently released a detailed transfer pricing decision in ExxonMobil Canada Resources Company v. His Majesty the King (ExxonMobil). That decision relies on a range of principles developed in Canadian...more
The Canada Revenue Agency (CRA) has made a significant reversal of its longstanding administrative position on the GST/HST treatment of mutual fund trailing commissions. Historically treated as exempt financial services, the...more
The Canada Revenue Agency (“CRA”) has recently revised its longstanding administrative position on the GST/HST exempt-treatment of mutual fund trailing commissions. Under the new position that will be enforced as of July 1,...more
The consequences of improperly charging GST/HST on sales of Alberta TIER emission offsets, emission performance credits (EPCs) and sequestration credits can be severe—particularly for purchasers. The Canada Revenue Agency...more
2025 will be remembered as a year of transition for Canadian taxpayers. The newly elected federal government pivoted away from many controversial Canadian tax policies of the early 2020s, while reaffirming its commitment to...more
Two themes of the November 4, 2025 federal budget were the deployment of technology to make government services more cost-effective and the reduction of regulatory red tape that slows private investment. On November 3, 2025,...more
Dans un souci de rendre le Programme des divulgations volontaires (le « PDV ») plus attrayant, l’Agence du revenu du Canada (l’« ARC ») y a apporté d’importants changements, lesquels entrent en vigueur le 1er octobre 2025....more
To make its voluntary disclosure program (VDP) more attractive, the Canada Revenue Agency (CRA) has implemented significant changes to the program effective October 1, 2025. At a high level, the new VDP...more
On May 12, 2025, the Canada Revenue Agency (“CRA”) began transitioning its default method of delivering most business correspondence for new business and program account registrations to taxpayers from paper mail to its...more
The Department of Finance recently released draft legislation that would implement certain amendments to further expand the Canada Revenue Agency’s (CRA) audit powers....more
A recent decision from the Ontario Court of Appeal is a good reminder that courts won’t bail you out just because a tax plan didn’t go as expected. In Pyxis Real Estate Equities Inc. v. Canada, 2025 ONCA 65, the Court made it...more
The Canada Revenue Agency (CRA) has taken a significant step into the digital age by making online mail delivered through the My Business Account portal the default method for most business-related communications. This...more
Private equity (PE) firms play a critical role in revitalizing struggling businesses by providing, among other things, financial support and operational expertise. PE transactions are often driven by a combination of...more
On January 31, 2025, the Minister of Finance (Canada) announced that the proposed increase in the capital gains inclusion rate from one-half to two-thirds, previously intended to be effective for dispositions occurring on or...more
On January 6, 2025, Prime Minister Justin Trudeau announced his resignation as prime minister and the prorogation of Parliament until March 24, 2025. At the federal level, prorogation is an act by the Governor General,...more
The Federal Court of Appeal (FCA) recently dismissed the Bank of Nova Scotia’s (BNS) appeal and upheld the Canada Revenue Agency’s (CRA) practice of charging arrears interest on a non-existent tax debt where audit adjustments...more
On October 29, 2024, the Canada Revenue Agency (CRA) announced that bare trusts are once again exempt from filing the T3 Income Tax and Information Return (including Schedule 15 regarding beneficial ownership information of a...more
The new Digital Services Tax Act came into force with an order-in-council on June 28, 2024, imposing a 3% digital services tax (DST) on certain Canadian-source digital services revenue of large entities. The DST would first...more
Le 16 avril 2024 (le « jour du Budget »), le gouvernement du Canada a présenté son budget fédéral de 2024 (le « Budget 2024 »). Bien que le principal élément du Budget 2024 soit une proposition visant à faire passer le taux...more
On April 16, 2024 (Budget Day), the Government of Canada released its 2024 federal budget (Budget 2024). While the biggest headline item in Budget 2024 is a proposal to increase the capital gains inclusion rate from one-half...more
L’Agence du revenu du Canada (l’« ARC ») a adopté une nouvelle politique administrative (la « nouvelle politique administrative ») qui est entrée en vigueur le 1er janvier 2024. La nouvelle politique administrative permet de...more
Effective January 1, 2024, the Canada Revenue Agency (CRA) has a new administrative policy (New Administrative Policy) for determining the province or territory of employment (POE) for payroll deduction purposes of employees...more
The latest edition of Davies’ Governance Insights is now available. In this issue, we explore 10 important trends that will help general counsel and boards navigate the year ahead. In order to help you with your strategic...more
Points saillants - Le 28 novembre 2023, le ministère des Finances (le « ministère ») a déposé un avis de motion de voies et moyens visant à mettre en œuvre la Loi d’exécution de l’énoncé économique de l’automne 2023, qui a...more