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11 July 2018

Canada's new GST/HST rules for carbon emission allowances discussed

The Department of Finance (Finance) released draft changes on June 27, to the Excise Tax Act, RSC 1985, c. E-15, as amended (the ETA) that will alter the way GST/HST is accounted for on the transfer of emission allowances (including emissions credits traded under the cap and trade systems that are in place in Alberta, Ontario, and Quebec). These changes propose to treat GST/HST on emission allowances similarly to how GST/HST is accounted for on the transfer of commercial real property.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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Document ID: 2018-1377

 

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