- The past 12 months have seen significant changes in the sales tax legislation, particularly in the financial services and cryptocurrency space.
- These changes have been announced without prior notice and have retroactively come into force, which is uncommon.
- The retroactive nature of these changes can have a significant impact on taxpayers, as they may receive assessment requests from the Canada Revenue Agency (CRA) regarding amounts collected or claimed prior to the recent legislation.
- The recent changes will require Deloitte Canada to work with clients and taxpayers to understand their responsibilities under the new legislation and review work completed within the retroactive clause.
- The use of technology, such as e-invoicing, is expected to increase in the future, leading to better traceability of transactions and increased efficiency.
- However, these technological changes may also increase costs for taxpayers and result in a more focused level of review from the government.
- Deloitte Canada is optimistic that these changes will bring positive progress in their approach to tax advice and legislation.
- Issues surrounding the taxation of the digital economy are affecting their work, including conflicting legislation and the need to adjust systems to collect taxes from international taxpayers.
- The tax authorities in Canada have been helpful in determining if taxpayers need to register for Canadian sales taxes, but there has been an increase in data requested during tax audits.
Source: internationaltaxreview.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
