I offer two distinct streams of service for non-residents:
(a) Planning and compliance services
(b) Dispute and problem resolution services
(a) Planning and Compliance Services
Canadian sales tax laws, as they apply to non-residents, are a minefield. The legislative provisions are complex and are driven by sensitive policy considerations. Legislative provisions and administrative positions are constantly being revised in response to elaborate cross border schemes. The issues are further complicated by the broad series of elections which are available to U.S. residents.
It is not uncommon for U.S. businesses to innocently conduct business in a manner which could be construed as an attempt to take advantage of an avoidance opportunity. Where detected, these situations, regardless of intent, are dealt with severely.
I provide planning services to ensure that the following two goals are met:
(i) exposure to Canadian sales tax and customs laws is minimized; and
(ii) opportunities to fully recover Canadian sales taxes and customs duties are identified and implemented.
I also ensure that U.S. businesses are aware of cross border sensitivities which relate to their existing or proposed methodologies. Sensitive situations include those which, though not specifically prohibited, might draw undue attention from government authorities.
Does my business need planning services?
Any non-resident who sells goods, services, software or other intangibles to Canadian purchasers should verify that their strategies are on track. This includes U.S. businesses which are already registered for Canadian taxes. U.S. businesses which are involved in any of the following activities should also be particularly vigilant:
(a) sales representatives or other individuals in Canada (including on a temporary basis);
(b) distributor in Canada;
(c) exportation of goods to Canada (including warranty repairs and other temporary arrangements);
(d) purchase of goods or services from Canadians; and
(e) sale of intangible property outside of Canada but which property may be used by the purchaser in Canada (including goodwill, trademarks, trade names, patents, software)
(f) cost sharing arrangements with Canadian subsidiaries
Do you flag opportunities to recover additional sales tax or streamline operations?
Yes. In addition to providing compliance services I will also seek out opportunities for businesses. Opportunities may be financial or administrative in nature. For example, I may advise as to a change in process which would allow more recoverability of input tax credits. This may be as simple as making an election. I will also flag opportunities to reduce your workload in connection with Canadian sales taxes, for example, by pointing out elections which may be made, or de-registration opportunities.
What kind of planning advice do you provide?
I thoroughly examine your supply chain relationships which connect to Canada. I will ensure that your process is compliant with existing legislation (and draft legislation where available) and with administrative policies. I will ensure that opportunities for tax recovery or for process streamlining are not being overlooked.
I will then provide you with an objective assessment of areas where there is potential for exposure and areas where there are opportunities for tax savings. I will devise for you and assist you in implementing exposure reducing strategies. If there are opportunities for tax savings I will implement the requisite changes for you.
How do you identify sales tax discrepancies?
In order to identify contentious issues I have developed a questionnaire for non-residents. The questionnaire takes into account Canadian sales tax legislation, administrative policies and procedures, Canadian jurisprudence and my experiences in assisting U.S. businesses in challenging Canadian sales tax assessments.
Non-residents are only required to complete portions of the questionnaire which are relevant to their particular business and areas of potential risk.
What happens after the review process is complete?
The outcome of the review will be determinative of the next step:
1. If the review establishes that there is a very low risk of exposure and no opportunity for improvement I will communicate this conclusion to you. The process will be complete.
2. If the review establishes that an opportunity for improvement is available I will explain this opportunity to you. I will also provide guidance as to how to implement the improvement. I will assist in the implementation process as needed.
3. If the review identifies an issue of potential exposure I will explain the issue, outline the nature of the risk (for example, the risk may be that the practice offends against an administrative position which does not have the force of law) and provide you with an assessment as to the degree of risk. I will set out the options which are available to you (both with respect to past transactions and on a going forward basis) along with my recommendation as to how you should proceed. I will assist in the implementation of the option which you have selected. 
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