Directors of corporations that fail to remit GST/HST may face personal liability for unpaid taxes, but a due diligence defence exists. The recent Stevens v. The King case illustrates the high bar for proving due diligence, demonstrating that passive delegation of financial oversight is insufficient to avoid personal liability for directors.

In my 35+ years of experience, I have seen the tax world evolve quite a bit. It used to be that tax or trade lawyers were engaged very early on in most disputes. Usually at the time of audit.

As artificial intelligence tools like ChatGPT and Claude become increasingly prevalent in Canadian legal practice, businesses and individuals face critical questions about their reliability and safety.

On December 4, 2024, the Canadian International Trade Tribunal (the "CITT") announced its Finding in Inquiry NQ-2024-002, concluding that the dumping of certain pea protein from China...

On February 2, 2026, the Canada Border Services Agency ("CBSA") issued a Notice of Initiation of Investigation under the Special Import Measures Act ("SIMA") in respect of the alleged dumping...

Since we last wrote about duty drawback, there have been significant developments in the trade war between Canada and the United States ("US").

Canada is extending its steel surtax regimes and related tariff relief measures through 2027, aiming to protect domestic steel workers and provide greater business certainty. The Department of Finance has confirmed extensions to tariff-rate quotas, remission categories for US steel and aluminum surtaxes, and exemptions for derivative surtaxes, while also exploring a potential shift to an allocation-based approach for certain steel goods.

The Canadian government announces a temporary suspension of federal excise taxes on gasoline, diesel, and aviation fuels from April 20 to September 7, 2026, amid rising oil prices caused by Middle East conflicts disrupting global supply chains. This initiative, dubbed the "Fuel Tax Holiday," aims to provide $2.4 billion in relief to Canadians facing elevated costs at the pumps while Prime Minister Carney's Liberal government seeks to address public concerns following recent political developments.

Canada has imposed a provisional 25% safeguard surtax on imported wood cabinets and vanities, effective until February 2027, while the Canadian International Trade Tribunal investigates whether surging low-priced imports are injuring domestic manufacturers. The measure includes specific exceptions for goods from certain countries and product categories, but importers face significant financial exposure and should immediately review their supply chains and classification strategies to determine eligibility

The Canadian International Trade Tribunal has initiated an expiry review of anti-dumping and countervailing duties on refined sugar imports from five countries, presenting a critical opportunity for producers and importers to request product exclusions. This review, occurring every five years, will determine whether existing trade remedies remain necessary and allows parties to seek exemptions for products that Canadian industry cannot supply comparably.

The Canadian International Trade Tribunal has launched a safeguard inquiry into certain wood goods following a government referral, examining whether increased imports are causing or threatening serious injury to domestic producers. This investigation comes amid significant US tariffs on similar wooden products, potentially diverting goods to the Canadian market. Importers and foreign producers face strict deadlines to participate in proceedings that could result in substantial cost increases or import rest

The Canada Border Services Agency (CBSA) issued a scope ruling determining whether National Nail's concealed deck screws fall within the definition of goods subject to anti-dumping and countervailing duties on carbon steel fasteners from China and Chinese Taipei. This ruling examines the physical characteristics, usage, and packaging of the screws to assess their classification under the Canadian International Trade Tribunal's (CITT) order.

Recent Federal Court of Appeal jurisprudence demonstrates that unsuccessful tax litigants must generally pay the government's legal costs regardless of financial difficulties, while successful litigants may still face cost awards due to procedural rules. Understanding the discretionary nature of cost awards in Tax Court of Canada proceedings is critical, as variables ranging from settlement offers to case complexity can significantly impact who pays legal bills.

Bill C-31, Canada's Budget 2025 Implementation Act No. 2, is currently before Parliament's Finance Committee with significant amendments to indirect tax rules. The legislation proposes to double the Tax Court's informal procedure threshold for GST appeals to $100,000, clarify tax treatment for credit unions, and modify imported supply rules for financial institutions dealing with insurance policies and loans connected to Canada.

The Federal Court has dismissed a Canada Revenue Agency application for an unnamed persons requirement directed at Shopify, finding that the target group was not sufficiently ascertainable due to ambiguity around persons "associated with" merchant accounts.

Directors of corporations that fail to remit GST/HST may face personal liability for corporate tax debts, but statutory limitation rules create narrow windows for enforcement. The recent Stevens v. The King case demonstrates how courts scrutinize resignation claims and what evidence directors must provide to escape liability under Canada's Excise Tax Act framework.

Tax auditors generally operate within a four-year limitation period when conducting audits, but this protection is not absolute. Understanding when the Canada Revenue Agency and provincial tax authorities can reassess beyond this timeframe—particularly in cases involving misrepresentation, neglect, or fraud—is critical for taxpayers who assume older years are permanently closed.

Canadian tax appeals processes can involve lengthy wait times and unclear communication from authorities, but when action is required, deadlines become suddenly urgent.

A recent Tax Court of Canada decision confirms that businesses cannot bypass quarterly GST/HST installment obligations by overpaying the tax authority and expecting automatic credit allocation. The case of BMLex Avocats Inc. demonstrates that tax authorities have no legal duty to automatically apply surplus funds to future installments, and businesses must actively manage their quarterly compliance duties with specific, timely instructions for credit transfers.

2026年4月20日，加拿大边境服务署（CBSA）根据《特别进口措施法》(SIMA) 发布 立案通知 ， 就从中国进口的钢制货架涉嫌倾销行为展开调查。本次调查系由加拿大钢制货架生产商提出的投诉所引发。