It is my understanding, after consulting a CA here, that the position of the Canadian Government towards electronic comnmerce is the following:
- all sales of services/ecomm done by a canadian corp on line are to be treated as being done INSIDE Canada, so taxable ...
Just like if a canadian store sells goods to an american visiting Vancouver ... It is up to the customer to claim back the gst when he exits the country.
Now, don't give me shit that it doesn't make sense ... I am just giving you the time of the day...
Memberships is the same thing.
The best you can do now:
- get a good accountant
- start looking for a good tax lawyer, that has connections
- try to play the " i didn't know" and hope they have sympathy.
- negotiate a reduce amount ....
http://www.cra-arc.gc.ca/tax/busines...st/menu-e.html