The Cross-Border Tax Podcast Series by BDO Canada

In this episode, Charmaine Goddeeris is joined by BDO Italy's Guido Calderaro and BDO Ireland's Carol Lynch to discuss the evolving impact of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). With CETA provisionally in force since 2017, the agreement continues to open doors to reducing tariffs, streamlining customs procedures, and enhancing regulatory cooperation. Learn how CETA is shaping transatlantic trade, where businesses are missing out, and how finance, customs, and tax professionals can unlock its full potential. Guest information: Host: Charmaine Goddeeris, Director, Customs & International Trade | BDO Canada Guests: Carol Lynch, Partner, Head of Customs & International Trade | BDO Ireland  Guido Calderaro, Head of Customs & Excise Duties | BDO Italy

Tariffs and trade disruptions are reshaping how companies approach transfer pricing. In this episode, Charmaine Goddeeris, Dan McGeown, and Hilary Coates offer practical guidance for tax and finance leaders on maintaining arm's length pricing amid volatile supply chains and raw material costs. Focused on real-world solutions, the discussion helps businesses adapt established transfer pricing frameworks to today's changing trade environment. Learn how to align customs valuations with transfer pricing policies, adjust strategies to reduce tariff impacts, and navigate common compliance challenges. Stay informed on managing risks and maintaining compliance while optimizing your cross-border operations. Guest information: Host: Charmaine Goddeeris, Director, Customs & International Trade Guests: Dan McGeown, Director, Transfer Pricing Hilary Coates, Director, Transfer Pricing

Discover how Canada's regulations are reshaping the digital marketplace for platform operators. In this episode, Craig Mulcahy, Bruce Goudy, and Michelle Minor break down the specifics of the new rules, their impact on operations, and the crucial compliance deadlines. Gain insights on strategies for compliance, the consequences of non-compliance, and the importance of data management. This is a must-listen for digital platform operators looking to succeed in a regulated digital world.  Guest information: Host: Craig Mulcahy, Partner, SR&ED and Government Incentives Leader Guests: Bruce Goudy, Director, Indirect Tax Michelle Minor, Senior Manager, Indirect Tax   What you'll hear in this episode:  [0:23] Intro [2:20] What is a digital platform operator (DPO)? [2:55] Current compliance requirements [5:01] Overview of current rules for DPOs [7:12] Quebec's new rules for DPOs [7:50] DPO Registration rules in other provinces [10:42] How can DPOs ensure compliance? [12:02] What kind of documentation is required? [13:50] Planning opportunities for DPOs [16:34] Brief summary of the key messages   Quotes  "The first thing is knowing what registrations you need. You need to know your threshold for each jurisdiction and monitor your sales every month. And you also need to know what information you need to gather to support either not having to register or if you do have to register, not having to collect the tax." "A digital platform operator or a DPO as they're referred to, are businesses that offer an online marketplace that allows sellers to offer their products online for sale to buyers. Products can range widely from various streaming services, which many of us are familiar with, software, and goods that actually get delivered to your door." "We've gone from a landscape where non-resident DPOs had little, if any, sales tax compliance in Canada and the provinces, and now they have to register to collect and remit up to five different sales taxes each with their own unique rule." "The DPOs will also need to collect information for all transactions facilitated through their platforms for not only filing purposes, but also to report on their information returns. That's a lot of information for DPOs to collect, and it's a requirement that they might not have had before." "DPOs with customers in Canada could have up to about eight different filings each year or different types of filings each year due to these new rules." "Digital platform operators now face significant compliance burdens needing to register for, collect up to five different sales taxes in Canada. There's filing information returns requirements, and potentially dealing with a new 3% digital services tax." "With Quebec's regulations, aligning closely with federal rules while BC, Manitoba, and Saskatchewan have their own thresholds and requirements." "DPOs must collect a ton of detailed information from sellers and buyers to determine their tax obligations and ensure compliance with the new rules." "Penalties. They can be hefty, but there are ways for DPOs to mitigate and eliminate their exposure if they find they're offside."

In this episode of our Cross Border Tax series, Lyn Little, BDO's National Franchise Industry Leader and Partner, delves into the intricate and complex tax regulations and registration requirements affecting sellers on digital platforms in Canada. The discussion covers navigating the current sales tax landscape, various compliance strategies to consider, and best practices for meeting compliance requirements. Tune in to gain a deeper understanding of the complexities of Canadian e-commerce taxes.   Guest information: Host: Lyn Little, Partner, National Franchise Industry Leader   Guests: Mélanie Camiré, Partner, Indirect Tax Jay Tulsani, Senior Manager, Indirect Tax   What you'll hear in this episode: [1:56] Revenue thresholds that trigger tax compliance and registration requirements for sellers. [3:13] Explanation of registration requirements for goods and services tax for those conducting business in Canada.   [4:18] Breakdown of provincial sales tax and its implications on each province. [8:06] Details and how to avoid penalties for non-compliance of appropriate registration. [12:37] Best practices and steps businesses can take to meet compliance requirements.   Quotes "The idea behind these [tax] changes is to create a level playing field between non-resident businesses that's applied to Canadian consumers as well as Canadian businesses. These changes ensure that non-resident suppliers collect and remit sales taxes as required for supplies or services provided to Canadian residents." "It's very important for businesses to take a holistic look as to which registration system is more beneficial for them before making a decision on which path to go on." "Navigating provincial sales tax regulations requires careful attention to thresholds, registration requirements, and compliance obligations. It applies to you whether you're a digital services provider, or marketplace seller, or a consumer. Understanding these rules ensures smooth operations and avoids potential penalties or interest." "When a vendor decides to sell goods or services or intangibles across Canada, it must review its registration requirements." "Understanding registration and compliance obligation is crucial for businesses making sales to Canadian residents. Depending on the sales threshold, businesses might need to register for provincial sales taxes rather than GST, HST."

In this episode, join host Danvir Roopra, BDO's National Tax Due Diligence Leader and Tax Private Equity Leader, as he discusses strategies for maximizing GST/HST recovery when selling a business with guests Darren Taylor and Shelley Smith, Partners in BDO Canada's indirect tax practice. The discussion focuses on early planning and structuring to ensure the recovery of sales taxes on expenses related to selling a business, the importance of proper documentation, and special rules applicable to holding companies and other entities involved in such transactions. Tune in for an insightful discussion to maximize your GST/HST recovery.   Guest information: Host: Danvir Roopra, National Tax Due Diligence Leader and Tax Private Equity Leader Guests: Darren Taylor, Partner, Indirect Tax Shelley Smith, Partner, Indirect Tax   What you'll hear in this episode: [2:16] The importance of planning and structuring to ensure sales tax recovery. [4:19] Advice for business owners on maximizing ITC recovery and sales tax recovery when preparing to sell their business. [6:38] Explanation of special rules for business owners to obtain maximum tax recovery. [12:06] Summary points for business owners contemplating selling their business. [14:40] Strategies for maximizing ITC before a sale and common mistakes to avoid in transactions. [18:15] The differences in sales tax rules across various Canadian jurisdictions.   Quotes "The first point of advice I can give is plan, plan, plan. Make sure you have the proper planning in place, and the proper structure in place before you go ahead and sign contracts with your accountants, with your lawyers, with your brokers, et cetera." "It's really helpful to, in advance, in contemplation of selling a business, maybe to do a diagnostic, a sales tax review, to make sure all of the issues hiding away in the closet that might come out and have to be resolved as part of a due diligence process." "The dollars can be significant, especially when you look at lawyers, structuring accountants, valuation opinions, so on and so forth. There's considerable resources being invested in acquisition or takeover of businesses." "…for anyone who is contemplating selling their business. One is to be careful who is signing the engagement letter for the work, which entity within the group is signing. Again, because GST and HST is very document driven, that is a very important factor." "Don't forget about the sales tax. It's important. It's recoverable if things are set up properly."

In this episode, BDO's Thomas Kontogianis, Ken Garth, and George Tadross break down the GST/HST recovery opportunity for builders of residential rental properties. They will walk you through the complexities of enhanced tax relief and how it can potentially unlock significant financial advantages for your upcoming projects. Tune in for actionable strategies that could positively impact developers considering new construction.   Guest information Host: Thomas Kontogianis, Partner, Assurance and Accounting Guests: Ken Garth, Partner, Indirect Tax   George Tadross, Senior Manager, Indirect Tax Services   What you'll hear in this episode [1:28] GST on residential rental construction in Ontario [4:30] Details on the Purpose-Built Rental Housing Rebate [6:14] Government purpose of the new rebate [7:12] Effects of the new rebate on the REC industry [9:51] Provincial alignment with GST changes [11:11] Impacts on the rest of supply chain and the industry [12:42] Additional insights on the rebate     Quotes "Everyone knows that right now we're in the middle of a very serious housing crisis. I mean, there's a lack of affordable rental housing. People just can't find places to live. I think one of the things we need to start with to frame this is a lot of people aren't familiar with exactly how the GST works on a residential rental construction." "What a lot of people don't realize is when that building is completed and rented, the builder has to pay GST or HST depending on where you're living to Canada Revenue Agency based on the value of the property when it's completed." "It's referred to as the Purpose-Built Rental Housing Rebate, and it's basically an enhanced version of the existing new rental rebates. It's designed to effectively eliminate GST and possibly HST, especially in Ontario, on certain new housing construction projects." "Number one, they're (federal government) looking to reduce the cost of housing across the country because we all know housing has just become unaffordable for people, including for renters, not just owners. The second thing they're trying to do is they really want to increase the supply of these large multi-unit residential properties because people need a place to live and we just don't have enough supply these kinds of units right now." "The new rebate doesn't apply to condominium units, there's going to be an inconsistent treatment of rental condominiums versus apartment buildings. If you built a multi-unit residential apartment, you'll be eligible for the new rebate. Whereas if you build a condominium tower with a number of condo units, you won't qualify." "With respect to other HST provinces or the HST provinces, obviously Ontario is the biggest driver of this change given the population. I would say Ontario probably more than other provinces, have the most drastic need for housing at the moment." "We could see that this is a significant win for large apartment builders because it'll definitely impact the profitability of their projects and over time hopefully increase the supply of rental units and apartments."

In this episode, BDO's Manufacturing Leader, Paul Dostaler, and Sustainability Partner, Martha Breithaupt, explore the incentives for manufacturing companies that invest in clean energy projects in Canada. These include five new refundable tax credits for clean technology and the reopening of Sustainable Development Technology Canada (SDTC) funding. Find out what opportunities these tax credits and grants can provide for our thriving Canadian and international green economy.   Guest information:  Host: Paul Dostaler, Partner, Consulting Guest: Martha Breithaupt, Partner, SR&ED and Government Incentives   What you'll hear in this episode:  [1.15] Funding landscape in Canada. [2.00] Five new fully refundable tax credits for clean technology. [5.20] Impact of labour requirements on credit rates. [6.25] Impact of tax credits on Canadian businesses. [7.09] Complying with tax credit requirements: Challenges and solutions. [8.04] Preparing businesses for tax credit benefits.   [8.45] Navigating new clean economy tax credits.   Quotes "If you intended to use it for a clean tech purpose, but subsequently changed course during the project duration in the first decade, those investment tax credits would be clawed back at a rate dependent upon what that investment is valued at today." "Canada has recognized the impact of climate change on our country, on the globe, and really also its effect on business. And so these tax credits are really trying to stimulate growth within our sustainability sector, as well as offset those expenses for our Canadian companies." "Businesses should really be proactively meeting with their advisors, assessing their growth and their exit plans to make sure that they're best positioned to take advantage of all of these supports that are available, really to make you that much more competitive and attractive on both the buy and the sell side." "…speak to your counterparts, your peers, your suppliers in industry, your associations that you are members of to find out really what initiatives are they considering across sustainability in their businesses and where are they investing and including technology capital as they grow."

Recording date: November 2023. New mandatory disclosure rules came into effect in June 2023, which introduced new reporting obligations for select tax planning transactions and uncertain tax treatments. In this episode, Paul Walker and Chris Rathwell from the BDO Transaction Tax team explain the new rules for both reportable and notifiable transactions, surprising uncertain tax treatments that may be impacted, and what effect this could have on financial statements. 

Recording date: October 2023. Navigating the complexities of the EIFEL rules can be challenging. In this episode—recorded live at the Tax Updates & Emerging Issues event with BDO Canada and the Tax Executive Institute (TEI), Toronto Chapter on Oct. 12, 2023—we break down the revisions to EIFEL rules and their impact. Tune in to hear BDO's Laura Ball and Jessica Blazejewicz explain who is affected, which deductions are involved, and how to adapt to the changes. 

Recording date: November 2023. In part three of our live podcast recorded at the Tax Updates & Emerging Issues event, BDO Partners Dan Lundenberg and Kevin Macnab cover what you need to know about U.S. tax, including legislative updates, uncertain tax positions and exposure, the results of a recent court case challenging 5472 penalties, and much more. 

Recording date: November 2023. When can you claim an input tax credit (ITC) on the purchase or sale of a business? In this episode, BDO's Ken Garth and George Tadross explain the key considerations related to Section 186, including who is eligible, what can be claimed, and notable court cases. 

Recording date: November 2023. When buying or selling a business, it's critical to take stock options into account—but this issue is sometimes inadvertently left unaddressed until just before a deal closes. In the final episode of our special live Cross-Border Tax podcast, BDO Partner Debra Moses provides a comparison between Canadian-controlled private corporation (CCPC) transactions and non-CCPC transactions to help you understand and navigate the key considerations. 

Recording date: December 2022. The United States is a natural marketplace for Canadian businesses to target. However, there are several key tax issues that companies need to be aware of when considering outbound expansion to the U.S. To shed some light on the process, BDO International Tax and Transaction Tax Leader Harry Chana, U.S. Tax Partner Emily Heinrich, and International Tax Partner Rose Cross outline common problems unprepared companies can encounter. 

Recording date: December 2022. Buying a business is rarely a straightforward decision. To get the most out of a deal, buyers need to be aware of key risks and pitfalls so they can make informed decisions during deal negotiations. To help guide you on your journey, BDO Transaction Tax Partners Danvir Roopra and Steve Pereira, alongside Indirect Tax Senior Manager Fred Wong, discuss the crucial role tax due diligence plays when purchasing a business, as well as common issues they see from a corporate income tax and indirect tax perspective. 

Recording date: March 2022. Companies coming into Canada face a variety of human resource challenges. In this episode, we discuss the tax pitfalls of moving employees into Canada or hiring within the country.  Issues covered include employee vs. independent contractor; the employment structure used, such as Global Employment Companies (GECs), Professional Employment Organizations (PEOs), Employers of Record (EORs); and method of compensation, such as equity compensation. BDO Tax Partner Debra Moses—alongside Marie Neill, BDO Senior Manager from our Expatriate Tax services team—offer reliable answers to these urgent challenges.