On May 17, 2019, the Minister of Finance published proposed amendments to the GST/HST portion of the Excise Tax Act. Notable among the proposed amendments is the inclusion of “virtual payment instruments” in the definition of “financial instrument”. A virtual payment instrument is essentially a virtual or cryptocurrency, such as Bitcoin. This amendment, if enacted, would mean that entities which provide supplies of cryptocurrencies would generally not be required to charge and collect GST/HST on these supplies.
Other amendments include the expansion of input tax credits available to inactive holding corporations who own units or shares of an active subsidiary corporation, partnership, or trust. Currently, the parent holding corporation can only claim input tax credits if the active subsidiary is a corporation.