Canexi Accounting & Tax Solutions Blog - Tax Updates

GST/HST Traps for the Unwary: Are You Missing Thousands in ITCs?

nospam@example.com (Administrator) — Thu, 26 Mar 2026 05:21:00 +0000

For Canadian small and medium-sized enterprises (SMEs), managing cash flow is a constant balancing act. One of the most effective, yet frequently underutilized, tools at your disposal is the Input Tax Credit (ITC).

Claiming ITCs correctly—and consistently—is more than just a routine bookkeeping task; it is a vital strategy for protecting your bottom line. However, many business owners inadvertently leave thousands of dollars on the table or, worse, expose themselves to unnecessary risk during a Canada Revenue Agency (CRA) audit.

In this guide, we break down the most common GST/HST traps that lead to missed savings and audit triggers.

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GST/HST and Incoterms 2020: Understanding Place of Supply in International and Interprovincial Trade

nospam@example.com (Administrator) — Sun, 01 Feb 2026 07:22:00 +0000

For e-commerce sellers engaged in interprovincial or international trade, Incoterms (International Commercial Terms) fundamentally determine the GST/HST rate applied to each transaction. This is one of the most misunderstood aspects of Canadian tax law, yet it directly impacts tax compliance and cash flow.

While most B2C e-commerce platforms (Amazon, Etsy, Shopify) don't explicitly use Incoterms, understanding this connection is essential for businesses with negotiated orders, B2B sales, or cross-border transactions. Additionally, for sellers importing goods into Canada and then reselling them, Incoterms clarify critical self-assessment obligations.

This guide explains how Incoterms interact with Canada's place-of-supply rules and provides practical examples for different business scenarios.

This guide references Incoterms 2020, the current version effective January 1, 2020.

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CRA Expands Voluntary Disclosures Program (VDP) — What’s New as of October 1, 2025

nospam@example.com (Administrator) — Fri, 26 Dec 2025 15:22:00 +0000

The Canada Revenue Agency (CRA) has introduced significant changes to its Voluntary Disclosures Program (VDP) effective October 1, 2025. These updates aim to simplify the application process, expand eligibility, and provide more generous penalty and interest relief for taxpayers who voluntarily correct past filing errors.

If you or your business has unreported income, unfiled tax returns, or other compliance issues, understanding how the new VDP works can help you avoid heavy penalties and possible prosecution while coming into compliance.

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10 Essential Year-End Tasks for Canadian SMEs

nospam@example.com (Administrator) — Wed, 17 Dec 2025 08:57:00 +0000

Canadian small and medium enterprises (SMEs) have roughly two weeks until December 31, 2025, to tackle these vital accounting and tax steps, including fresh e-filing mandates from Canada Revenue Agency (CRA)'s 2025 rules. Detailed execution now prevents penalties, unlocks savings, and builds a solid foundation for 2026 operations.

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Canada’s Asia Pivot: Transfer Pricing Rules for Canada–Hong Kong Deals

nospam@example.com (Administrator) — Tue, 16 Dec 2025 18:32:00 +0000

Canada is accelerating an Asia-facing trade strategy, even as bilateral merchandise trade with Hong Kong slipped 9.7% in 2024 to about C$3.5 billion (HK$19.8 billion). Hong Kong imported roughly C$1.3 billion (HK$7.5 billion) in goods from Canada—around 0.2% of its total imports—highlighting its role as a strategic hub rather than a volume market. In this environment of volatile flows and portfolio rebalancing, related‑party deals between Canadian and Hong Kong entities attract increased transfer pricing scrutiny from both the Canada Revenue Agency (CRA) and Hong Kong’s Inland Revenue Department (IRD).

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Transfer Pricing Traps: What Every Canadian Company Needs to Know About CRA's Arm's Length Rules

nospam@example.com (Administrator) — Mon, 15 Dec 2025 07:08:00 +0000

Transfer pricing sounds like something only giant multinationals need to worry about. In reality, any Canadian company doing business with related parties abroad — even a single subsidiary or sister company — is on the Canada Revenue Agency (CRA)'s radar. The rules are technical, the penalties are real, and the CRA has made clear in its public guidance that "close enough" is not good enough when it comes to pricing intercompany transactions.

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