Canada Update 2016 API International Trade and Customs Conference 2015 March 29, 2016: New Orleans, LA ROBERT G. KREKLEWETZ Email: rgk@taxandtradelaw.com Tel: (416) 864-6200
Roadmap Subject Area 1. Canadian Political Landscape 2. The Canadian Corrections Process for Import Errors 3. The Canadian Voluntary Disclosure Process 4. The TPP A Canadian Perspective 5. Rail Regulation Update 6. Random Thoughts on Y All Moving Up to Canada
Roadmap Subject Area 1. Canadian Political Landscape 2. The Canadian Corrections Process for Import Errors 3. The Canadian Voluntary Disclosure Process 4. The TPP A Canadian Perspective 5. Rail Regulation Update 6. Random Thoughts on Y All Moving Up to Canada
Western Canadian Sedimentary Basin
Roadmap # 1 Canadian Political Landscape 1. Nov 2015 - Conservatives (Harper) defeated Liberals (Trudeau) 2. Shift in the Canadian Political Spectrum to the Far Left 3. Thesis: Pro-Energy Focus of prior Government now in the past?
Former Prime Minister Stephen Harper F$&*-&$$ Putin!
Current Prime Minister Selfie
Career Highlights of Prime Minister Selfie Son of former Prime Minister Snowboard Instructor Bouncer at Bar Drama Teacher Member of Parliament Prime Minister (!)
Roadmap # 1 Canadian Political Landscape 1. Nov 2015 - Conservatives (Harper) defeated Liberals (Trudeau) 2. Shift in the Canadian Political Spectrum to the Far Left 3. Thesis: Pro-Energy Focus of prior Government now in the past?
Bernie Sanders Former Canadian Prime Minister Stephen Harper Alberta Premier Rachel Notley Canadian PM Justin Trudeau
Roadmap # 1 Canadian Political Landscape 1. Nov 2015 - Conservatives (Harper) defeated Liberals (Trudeau) 2. Shift in the Canadian Political Spectrum to the Far Left 3. Thesis: Pro-Energy Focus of prior Government now in the past?
Montreal Mayor Denis Coderre Prime Minister Justin Trudeau
Montreal Mayor Denis Coderre Prime Minister Justin Trudeau
Montreal Mayor Denis Coderre Prime Minister Justin Trudeau
Jan 21, 2016: Montreal Metro Area Mayors all officially oppose Energy East Pipeline http://www.cbc.ca/news/canada/montreal/montreal-mayor-denis-coderre-energy-eastopposition-1.3413117
BC Premier Christy Clark Prime Minister Justin Trudeau
BC Liberal Premier, Christy Clark opposed to Northern Gateway Pipelines: http://www.cbc.ca/news/canada/british-columbia/b-c-officially-opposes-enbridge-northerngateway-pipeline-1.1386317
April 14, 2015: Could Tar Sands Industry Start Shipping Oil Through Arctic http://www.alternet.org/environment/frustrated-tar-sands-industry-looks-arctic-export-route
Jan 27, 2016: Trudeau Government s Develops new Environmental Regulations for Pipeline Projects: http://www.cbc.ca/news/politics/environmental-regulations-pipelines-1.3422129
Roadmap # 1 Canadian Political Landscape Take-Aways 1. It s not the Great Red North 2. New Liberal Prime Minister not a friend to the Fossil Fuel Industry
Roadmap Subject Area 1. Canadian Political Landscape 2. The Canadian Corrections Process for Import Errors 3. The Canadian Voluntary Disclosure Process 4. The TPP A Canadian Perspective 5. Rail Regulation Update 6. Random Thoughts on Y All Moving Up to Canada
Roadmap # 2 Corrections Process of Import Errors Overview 1. Applicable to Importers to Canada, including Non-Resident Importers (lots of those in Petroleum Industry). 2. Mandatory Correction Obligation for all errors involving tariff class, origin and valuation: s. 32.2 of the Customs Act 3. A difficult maze especially for US Clients
Roadmap # 2 Corrections Process of Import Errors Example 1: Whoops, we found an error! 1. Positive obligation to correct error and pay back 4 years 2. Corrections & Payment due within 90 days or AMPS 3. Applies even where goods are DUTY FREE 4. Large Volumes require special process, eating up 45+ days 6. CBSA has differing practices nationally 7. Crazy Reason to Believe policy often requires Voluntary Disclosure
Roadmap # 2 Corrections Process of Import Errors Example 2: CBSA Has Assessed Us! 1. Importer audits, and issues Final Verification Report (FVR) 2. CBSA issued DAS s for the Audit Sample 3. Payment due in 30 days, and required BEFORE appeal rights 4. CBSA also requires go-backward Mandatory Corrections by Importer 5. Same issues as in Prior Slide (90 day running target)
Roadmap # 2 Corrections Process of Import Errors Take-Aways 1. Time will be the biggest obstacle. Get moving immediately. 2. Get the lawyers involved immediately.
Roadmap Subject Area 1. Canadian Political Landscape 2. The Canadian Corrections Process for Import Errors 3. The Canadian Voluntary Disclosure Process 4. The TPP A Canadian Perspective 5. Rail Regulation Update 6. Random Thoughts on Y All Moving Up to Canada
Roadmap # 3 Canadian Voluntary Disclosures Overview 1. Canadian Voluntary Disclosure Process (VDP) like US Prior Disclosure process, but different 2. Main difference is that cannot start a VDP once CBSA has initiated a review or audit, or given you notice of same 3. CBSA wants a VDP to be voluntary 4. VDP remains important program to disclose prior non-compliance
Roadmap # 3 Canadian Voluntary Disclosures New CBSA VDP Policy 1. October 29, 2014 D-11-6-04 New Policy outlining following changes: Clarification of application to non-compliance Exports Possible penalty, specified interest or CBSA action will allow VDP Limits disclosure period to six years No-Names Disclosure process clarified, with 90 window for Completion Have removed amnesty from Criminal Prosecution Requirement for VDP Agreement removed for Info Requirements
Roadmap # 3 Canadian Voluntary Disclosures Example 1: Whoops, we found an error! 1. Error of type that CBSA says ought to have been caught at time of importation, and corrected for per s. 32.2 of Customs Act 2. CBSA s view that Mandatory Corrections ought to have been made within 90 days of importation. 3. Therefore statutory deadline missed. 4. Advisable to make VDP in this instance.
Roadmap # 3 Canadian Voluntary Disclosures Example 2: No Mandatory Correction require, but 1. VDP also helpful for other non-compliance areas (e.g., Exports and Export controls; Food Import issues) 2. May often involve contemporaneous disclosures to Other Governmental Departments (OGD). 3. New VDP Policy clarifies procedures, and generally more inclusive of these more complex situations.
Roadmap # 3 Canadian Voluntary Disclosures Take-Aways 1. Get advice as the VDP is usually a right that you would want to invoke, even if making a Mandatory Correction 2. Powerful program if used correctly
Roadmap Subject Area 1. Canadian Political Landscape 2. The Canadian Corrections Process for Import Errors 3. The Canadian Voluntary Disclosure Process 4. The TPP A Canadian Perspective 5. Rail Regulation Update 6. Random Thoughts on Y All Moving Up to Canada
Roadmap # 4 TPP A Canadian Perspective Overview 1. Comprehensive Multi-lateral Trade agreement signed Feb. 4, 2016 Australia Japan Peru Brunei Malaysia Singapore Canada Mexico United States Chile New Zealand Vietnam 2. Canada has signed but NOT ratified consultations forthcoming 3. NAFTA will continue to apply for US-Canada trade, except to extent TPP further liberalizes that trade
Roadmap # 4 TPP A Canadian Perspective Overview 1. Similar structure to existing CDN multi-lateral trade agreements 2. Investor-State Dispute Settlement Mechanism (already in NAFTA) 3. Increased Threshold for Foreign Regulatory Scrutiny (for non-stateowned enterprises) 4. Provisions re: National Treatment, Market Access, Investment, Government Procurement and Competition Policy
Roadmap # 4 TPP A Canadian Perspective Petroleum Specific 1. NAFTA Diluent problem addressed 2. Under TPP, Canadian exports able to contain limited amounts of diluent from non-tpp countries when exported preferentially under TPP to the US via pipeline 3. Benefits limited by Canada / US Southern Pipeline opposition?
Roadmap # 4 TPP A Canadian Perspective The Fine-Print 1. Annex 3-D: Product-Specific Rules of Origin: Heading Note 3: Diluent Rule - For the purposes of determining whether good of heading 27.09 is originating good, the origin of diluent of heading 27.09 or 27.10 that is used to facilitate the transportation between Parties of crude petroleum oils and crude oils obtained from bituminous minerals of heading 27.09 is disregarded, provided that the diluent constitutes no more than 40 per cent by volume of the good.
Roadmap # 4 TPP A Canadian Perspective Take-Aways 1. Some good news on the diluent side of things. 2. We are not there yet new Canadian government needs to ratify.
Mar 7, 2016: Trudeau Feted by Obama at White House State Dinner http://www.cbc.ca/news/world/white-house-state-dinner-justin-trudeau-barack-obama- 1.3476971
What they were really talking about Help me kill the pipelines! Absolutement, mon ami!
Roadmap Subject Area 1. Canadian Political Landscape 2. The Canadian Corrections Process for Import Errors 3. The Canadian Voluntary Disclosure Process 4. The TPP A Canadian Perspective 5. Rail Regulation Update 6. Random Thoughts on Y All Moving Up to Canada
Roadmap # 5 Rail Regulation Update We reviewed the Lac Megantic tragedy last year, and the rush to regulation that entailed.
Roadmap # 5 Rail Regulation Update Update 1. No significant regulatory changes since last year 2. March 22, 2016 Federal budget announces significant expenditures and initiatives forthcoming on Rail Regulation: $143 million to strengthen oversight and enforcement of rail safety and dangerous goods transport Increased inspections Increased testing, monitoring and mapping of dangerous goods movements
Roadmap # 5 Rail Regulation Update Take-Aways 1. Not much in Last Year 2. More on this Next Year
Roadmap Subject Area 1. Canadian Political Landscape 2. The Canadian Corrections Process for Import Errors 3. The Canadian Voluntary Disclosure Process 4. The TPP A Canadian Perspective 5. Rail Regulation Update 6. Random Thoughts on Y All Moving Up to Canada
Americans Contemplate Moving to Canada after Early Trump Successes http://traveltips.usatoday.com/move-us-canada-63923.html
Roadmap # 6 Thoughts on All Y All Moving on Up Three Points 1. Understand this: We are lefter than Bernie! 2. Yes, we have FREE Health Care 3. But you will pay for it with a modest increase in your taxes!
Rob s Last Dollar Rob's PDI $1.00
Rob s Last Dollar Rob's PDI Income Tax $0.46 $0.54
Rob s Last Dollar $0.07 Rob's PDI Income Tax VAT $0.39 $0.54
Rob s Last Dollar $0.03 $0.07 Rob's PDI Income Tax VAT Property Tax $0.36 $0.54
Rob s Last Dollar $0.03 $0.02 $0.07 Rob's PDI Income Tax VAT Property Tax School Tax $0.34 $0.54
Rob s Last Dollar $0.02 $0.03 $0.02 $0.07 Rob's PDI Income Tax VAT Property Tax School Tax Gas Tax $0.32 $0.54
Rob s Last Dollar $0.02 $0.03 $0.02 $0.02 Rob's PDI Income Tax VAT Property Tax School Tax Gas Tax Beer/Alcohol $0.07 $0.54 $0.30
Roadmap # 6 Thoughts on All Y All Moving on Up Take-Aways 1. Come on Up!!! 2. We need the help with our tax base!
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