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commodity taxation
GST/HST and Other Commodity Taxes
Our Commodity Tax Group consists of a number of lawyers with years of experience resolving commodity taxation problems. We help clients in all areas of commodity taxes, including harmonized sales tax (HST), goods and services tax (GST), federal excise tax and duties, Ontario retail sales tax, Ontario employer health tax, Ontario land transfer tax, Quebec sales tax, British Columbia social services tax, and other provincial taxes, such as, gasoline taxes, fuel taxes and tobacco taxes. We also assist clients with matters relating to customs duties (including customs valuation, tariff classification, rules of origin, NAFTA verifications, etc.) and commodity taxation at the border.
A member of McMillan's Commodity Tax Group is a founder of The HST Blog (www.thehstblog.com).
Areas covered:
McMillan's Commodity Tax Group has decades of experience providing commodity tax advice to a variety of industries, including: automobile, hospitality, health care, nursing home, retirement home, residential and commercial real estate, manufacturing, pharmaceuticals, financial services (including banks, selected listed financial institutions, mutual funds, insurance companies, etc.), pension plans, energy, charities and not-for-profit corporations.
Representative Transactions/Cases
- Offering legal tax planning and structuring advice in purchase and sale transactions to minimize commodity tax liabilities and costs;
- Providing advice and guidance on commodity tax compliance;
- Advising clients on how to minimize commodity tax assessment risk;
- Preparing and filing voluntary disclosures to avoid penalties, fines and prosecutions;
- Advising non-residents of Canada or particular provinces about commodity tax registration and compliance obligations;
- Preparing tax ruling and interpretation requests;
- Providing assistance to clients during commodity tax and customs audits and NAFTA, other origin, tariff classification and value for duty verifications;
- Representing clients prepare and participate in administrative appeals of assessments with the Canada Revenue Agency (CRA), the Canada Border Services Agency (CBSA) and provincial tax authorities (e.g., notices of objection and requests for redetermination);
- Helping clients in judicial appeals of tax assessments before the Tax Court of Canada, the Federal Court of Canada, the Federal Court of Appeal, the Supreme Court of Canada and provincial courts;
- Negotiating with the tax and customs collections branches of the CRA, the CBSA and provincial tax authorities and advising client on collections matters;
- Providing legal advice concerning commodity tax and customs priorities in the context of Companies' Creditors Arrangement Act (CCAA) and Bankruptcy and Insolvency Act proceedings;
- Advising corporate directors and officers concerning their duties and obligations to ensure their companies comply with tax and customs laws, and disputing actual and proposed tax and customs assessments imposed, or to be imposed, derivatively against directors and officers;
- Communicating with the Department of Finance, the CRA, the CBSA and provincial governments regarding changes to commodity tax and customs laws, regulations and administrative practice;
- Identified substantial duty refund claims for, and savings from, duties paid on royalties and assisting clients to obtain them;
- Successful appeal of assessment of customs duties and seizure of goods for alleged under-declarations of customs valuation arising from transactions between a foreign supplier/exporter and a related Canadian importer/distributor of electronic products;
- Voluntary disclosure to CBSA on behalf of a Canadian electronics importer and distributor to rectify preferential NAFTA tariff treatment coding and origin errors to obtain waiver of significant penalties;
- Prepared submission to CBSA on behalf of a Canadian electronics importer and distributor acquiring products from a related foreign supplier/exporter in regard to a Canadian customs valuation compliance verification audit;
- Appealed a CBSA (predecessor of CBSA) seizure of a boat for alleged failure to report the imported boat;
- Advised a Canadian motor vehicle manufacturer on applicable rules of origin for preferential tariff (duty) treatment under the North American Free Trade Agreement as well as the Canada-Chile and Canada-Costa Rica Free Trade Agreements for parts acquired, and implemented procedures with their suppliers to ensure compliance;
- Prepared opinion on the availability of "container banks" for streamlined customs reporting and accounting of reusable containers used in international transactions of automotive parts, and on the availability of relief from duties and GST on the import of the reusable containers;
- Reviewed customs, trade and transfer pricing procedures for a Canadian motor vehicle parts manufacturer and prepare report with advice and recommendations;
- Advising a Canadian importer of paper products which is part of a large multinational company on a CBSA customs verification audit.
Publications / Presentations
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October 2011
A Matter of Fairness: Cancellation of Interest and Penalties under the Canadian Taxpayer Relief Provisions
IBFD - Bulletin for International Taxation
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March 2011
Place of Supply Rules
Presented at: HST in Ontario, sponsored by Lorman Education Services
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July 2010
Finance announces changes to HST rules for funds
McMillan Client Advisory
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June 2010
Significant Proposed HST Changes for Funds and their Managers
McMillan Client Advisory
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2010
Evolution of HST Place of Supply, Self-assessment and Rebate Rules Relating to Services and Intangible Personal Property
Vol. XI, No. 3, Sales and Use Tax, Federated Press
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March 2010
Place of Supply Rules
Presented at: Harmonizing GST and PST, sponsored by Lorman Education Services
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January 2009
Customs Valuation Update
Presentation at Infonex Customs Compliance & Border Security Program
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November 2008
Update on Commodity Tax and Customs Issues for Manufacturers and Exporters
Presentation: Federated Press Transactional Commodity Taxation Course, November 13 and 14, 2008
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October 2008
Are Fund Investment Management Services Supplies of Financial Services?
Canadian Tax Journal
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March 2008
The AUJLA Decision: Are Directors Liable when a Corporation is Revived?
Vol. XXII No. 2 GST & Commodity Tax
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January 2008
How to Withstand CBSA's Scrutiny of Import Origin Claims and Import/Export Controls
Presented at: Customs Compliance and Border Security
Best Practices in Regulatory Issues and Cross-Border Security, January 22 and 23, 2008
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June 2007
The Federal Court of Appeal Reinstates a GST Assessment
Ontario Dentist Magazine
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February 2007
GST/HST proposed amendments
Tax Law Bulletin
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February 2007
How to Reduce Your GST Burden
Ontario Dentist Magazine
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May 2006
The 1% Solution: Transitioning to a 6% GST
Tax Law Bulletin
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November 2005
Canadian Customs and Trade Law Developments
McMillan Conference - Update 2005, Emerging Trends for Decision Makers
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July 2005
Case Comment: Toronto Blue Jays Baseball Club et al v. Ontario (Minister of Finance) - Meaning of "Permanent Establishment" for Ontario Employer Health Tax and Beyond
Canadian Tax Journal (2005), Vol. 53, No. 2, p. 475
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December 2004
What is the Essence of a Shower Curtain Set? (Article on Customs Tariff Classification Case)
GST & Commodity Tax, Vol XVIII No.10
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August 2004
The FCA's FosterGrant Decision (Article on Customs Valuation Case)
Tradeweek - Vol. 115, No. 19
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July 2004
Increased focus on goods imported from China
The Lawyers Weekly
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March 2004
Buying Commissions Non-Dutiable in CITT Case
Tradeweek - Vol. 115, No.9
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February 2004
New GST Rules for Imported Goods
World Corporate Finance Review - Volume 4, No. 2
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December 2003
Royalties and Value for Duty
GST and Commodity Tax
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August 2003
Living With 'AMPS' - The New Customs Penalty System
Canadian Customs Advisory Bulletin
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October 2002
Opportunities for Canadian Customs Duty Relief and Recovery on Royalties and Licence Fees
McMillan Bulletin
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June 19, 2002
Customs Valuation in Canada and Transfer Pricing in Canada
"Commodity Tax for the General Tax Practitioner" conference, sponsored by the Canadian Association of Importers and Exporters
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June 2001
Case Comment: Mattel Canada v. MNR - Customs Law Settled In Mattel: Or Is It?
Canadian Tax Journal (2001), Vol. 49, No. 6
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October 2000
Permanent Establishments: Tax Tips & Traps
CICA Commodity Tax Symposium
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Peter Botz
604.893.2319
Cyndee Todgham Cherniak
416.307.4168
Jamie M. Wilks
416.865.7804
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