Many insurance and financial institutions have a high compliance burden from indirect taxes, owing to the need to distinguish between taxable and exempt supplies and the restriction that many face in reclaiming all the VAT paid on their inputs. Insurance companies, banks, and security dealers in Canada now face new indirect tax GST/HST and Quebec sales tax (QST) challenges. With increased costs for non-compliance (such as penalties) and increased audit activities by the tax authorities, insurance companies banks, and security dealers need to understand and apply all the complex tax rules that apply to their specific facts and circumstances. Many taxpayers are still dealing with changes introduced in past years, including significant GST/HST amendments, changes to Canada Revenue Agency policies, new HST rates, and new compliance obligations. These institutions and their advisers need to ensure that their VAT administration has been adapted to incorporate the new requirements.
Related Posts
Australia, Canada agree to revise tax treaty framework
Australian Prime Minister Anthony Albanese and Canadian Prime Minister Mark Carney issued a joint statement on 5 March 2026 at the outset of Carney's first official visit to Australia. The two leaders have committed to modernising the two
Read More
India, Canada to finalise free trade agreement by year-end
India and Canada aim to conclude a free trade agreement by the end of 2026, Prime Minister Mark Carney said on 2 March 2026, during his first visit to New Delhi. The deal is intended to restore economic ties after years of diplomatic
Read More
Canada launches consultations to strengthen automotive remission framework
Canada’s Department of Finance, in a news release on 27 February 2026, announced that it launched consultations on potential ways to strengthen Canada’s automotive remission framework by further incentivising companies to produce and invest in
Read More
IMF Country Focus Examines Canada’s Internal Barriers to Trade
On 27 January 2026 an IMF Country Focus looked at opportunities for Canada to increase growth by removing internal barriers to trade. The Country Focus with the title Canada Can Grow Faster by Unlocking Its Own Market, written by F Diez and Y. Yang,
Read More
IMF Report on Canada Recommends Tax Changes
On 21 January 2026 the IMF issued a report following consultations with Canada under Article IV of the IMF’s articles of agreement. The report notes that Canada is adjusting the significant trade shock caused by US tariff increases and the limited
Read More
Canada joins multilateral agreement on GloBE information exchange (GIR MCAA)
The OECD has reported that Canada signed the Multilateral Competent Authority Agreement on the Exchange of GloBE Information (GIR MCAA) on 6 February 2025. The agreement is designed to enable the automatic exchange of GloBE Information Returns
Read More