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COVID-19 update - Indirect tax, Canada

Covid-19 is disrupting business across the world requiring tax authorities to implement rules and reliefs to support businesses through this period. We are pulling our global indirect tax resources together to create a single source of information, support and thought leadership.

The Canadian federal and provincial governments have temporarily extended certain deadlines for the filing and/or remittance of sales tax.

What type of business is this information relevant for?

Any business with Canadian Indirect Tax (GST/HST, QST, B.C. PST, Saskatchewan PST and Manitoba PST filing requirements). This will be across any industry / business sector that have Canadian Indirect Tax filing requirements.

VAT/GST reliefs – tax authority announcements

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The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks (released 18 March). For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.

What ideas have you generated to support businesses?

Opportunities for generating much needed cash flow may already be available to businesses. However, it is often challenging for businesses to have the internal expertise or available staff capacity to recognise and realise every opportunity available to them. With the current interruption of regular operating activity, utilising RSM expertise may help business leaders maximise opportunities to support their business during these challenging times.

The specific tax services you may want to consider are as follows:

  • Maximising Canadian sales tax (GST/HST/QST/PST) recoveries - identifying unclaimed credits, overpaid sales tax obligations and missed exemptions under current legislation.
  • Preparing Scientific Research & Experimental Development (SR&ED) claims – maximising credits recovered for all qualifying companies under the present tax legislation.
  • Investigating all Credit and Incentive programs available for your organisation – identifying programs and credits available to assist organisations both now, during the pandemic and already available under existing programmes.
  • Reviewing customs and Duty drawbacks and tariff reclassification – reducing duty obligations through reclassification and drawback opportunity identification.
  • Reviewing other Value-added Tax (VAT) obligations where your organisation may be registered – identifying unclaimed credits and missed exemptions under the applicable country’s tax statutes.

Call to action

RSM Canada is here to help.

Companies with filing requirements in Canada should take advantage of the revised remittance and filing deadlines.

RSM Canada offers a solution to securing additional cash flow without affecting the competitiveness of a business. To maximise tax recovery opportunities available, our experienced team of tax professionals can assist businesses to survive this liquidity crisis and ensuring that those recovery opportunities are maximised. RSM Canada’s Indirect Tax team can help to provide a business with sustainable solutions for long-term viability, and to be prepared for the next cycle of economic prosperity.

Please contact RSM Canada’s Indirect Tax leaders for further discussions:
Bill MacQueen, National Leader, Canadian Indirect Tax @ [email protected]
Rob Dew,  Partner, Canadian Indirect Tax @ [email protected]
David Crawford, Partner, Canadian Indirect Tax @ [email protected]

AUTHOR

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Bill MacQueen                                                                       
National Leader, Canadian Indirect Tax, RSM Canada
E: [email protected]