Commodity tax (often referred to as Indirect Tax; GST/HST, PST) is often overlooked by businesses until the Canada Revenue Agency (CRA) knocks on your door and conducts an audit. It is only at that point that companies realize they have been handling their commodity taxes incorrectly. As companies grow, and start to ship to different provinces and internationally, the applicability of commodity taxes becomes more complex. Addressing your commodity tax needs as your business continues to grow is vital to avoid exposing your company to CRA reassessments for uncollected taxes.
We don’t just look for tax credit recovery opportunities, we review your entire system from a commodity tax standpoint to ensure that your business is charging the appropriate rates to your customers within Canada and across the globe. At DJB, our professionals can also assist you and your business with conflict resolution during a CRA audit and the filing of notices of objection. Considering some businesses in Canada pay more in commodity taxes than they do income tax, commodity taxes should be reviewed on a regular basis to ensure their accuracy; especially if the jurisdictions you are purchasing from or selling to are changing as your company expands.
Some examples of projects our clients have engaged DJB’s Commodity Tax team for include:
- Business expansion planning (importing/exporting)
- CRA audit navigation
- GST/HST recovery reviews
- Risk exposure reviews
- Voluntary disclosures