On 27 June 2018, the Department of Finance released draft changes to the Excise Tax Act, RSC 1985, c. E-15, as amended, that will alter the way GST/HST is accounted for on the transfer of emission allowances (including emissions credits traded under the cap and trade systems that are in place in certain provinces). These changes propose to treat GST/HST on emission allowances similarly to how GST/HST is accounted for on the transfer of commercial real property. Learn more in our latest Tax Alert.
On 12 June 2018, Québec Bill 150 received Royal Assent. In particular, it contains legislative changes following the measures announced in the Québec budget tabled on 27 March 2018 relating to the application of the Québec sales tax (“QST”) to supplies made by suppliers with no significant presence in Québec through the implementation of a new “specified registration system.”Learn more in our latest Tax Alert.
On 21 June 2018, the United States Supreme Court issued its ruling in South Dakotav. Wayfair. As a result of the Court’s decision, e-commerce vendors may be required to collect and remit South Dakota sales tax for sales made to South Dakota consumers, even where such vendors do not have any offices, warehouses or employees in the state. Compliance costs for Canadian online vendors could increase substantially if other states decide to enforce sales tax legislation similar to that of South Dakota. Learn more in our latest Tax Alert.
Effective 1 July 2018, Canada imposed a 25% or 10% surtax on steel and aluminum products and many consumer goods originating in the United States. The Canada Border Services Agency issued Customs Notice 18-08 clarifying the application of the surtaxes and discussing exclusions therefrom as well as the applicability of Canada’s duty deferral and drawback regimes to re-exports of such goods or goods containing or incorporating manufacturing from such goods. The revised list of covered tariff items is provided in the United States Surtax Order (Steel and Aluminum) and the United States Surtax Order (Other Goods). Learn more in our latest Tax Alert.
On June 26, 2018, the Supreme Court of the United States upheld President Trump’s Proclamation No. 9645, which imposed travel restrictions on certain nationals from Iran, Libya, Somalia, Syria, Yemen, North Korea, and Venezuela (Chad, Sudan, Iraq have been removed from the original Executive Order).