Global

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  • Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 6/19/2014

Canada - Indirect tax challenges for real estate sector 

June 19: Businesses in the real estate industry continue to face indirect tax—GST/HST and QST—challenges.

The indirect tax rules specific to the real estate industry were further complicated by numerous recent changes—i.e., changes that may significantly increase compliance costs and assessment risks for many real estate businesses, including owners of commercial or residential rental properties, owners of seniors' residences, new home builders, and property managers.


The recent indirect tax changes reflect amendments to the law, announced changes for joint ventures, and court decisions. In addition to other 2013 indirect tax changes—such as the QST rate adjustment, a GST and new PST system in British Columbia and a new HST in Prince Edward Island—real estate businesses are seeing increased audit activities by the tax authorities.


Read a June 2014 report prepared by the KPMG member firm in Canada: Real Estate Industry - Managing More GST/HST Challenges




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