FEDERAL BUDGET SUMMARY – 2017
This is effective March 22, 2016; however, this measure does not apply for any
supply of Naloxone (and its salts) occurring on or before Budget Day for which GST
/ HST was charged, collected, remitted or paid.
TAXI AND RIDE-SHARING SERVICES
GST / HST is required to be charged on a taxi business which is currently defined as
a business of transporting passengers who are regulated under the laws of Canada
or a province. As a result, ride sharing services are not required to charge GST /
HST. However, Budget 2017 proposes to amend the definition of a “taxi business”
to include ride sharing services thereby requiring them to collect and remit in the
same manner as taxi operators. The changes will not apply to school
transportation services or a sightseeing service.
GST / HST REBATE TO NON-RESIDENTS FOR TOUR PACKAGE ACCOMMODATIONS
The current rebate for non-resident individuals and non-resident tour operators
for the GST / HST that is payable in respect of the Canadian accommodation
portion of eligible tour packages will be eliminated.
Supplies of tour packages or accommodations made after Budget Day will be
affected. For transitional purposes, the rebate will continue to be available where
a supply of a tour package or accommodations is made after Budget Day but
before January 1, 2018, if all of the consideration for the supply is paid before
January 1, 2018.
E. Other Tax Measures
The government indicated that to date, they have entered into more than 50
taxation agreements in respect of sales and personal income tax with Aboriginal
governments. The government confirms that it is willing to enter into additional
agreements with Aboriginal governments and will facilitate arrangements
between provinces or territories and Aboriginal governments.