North America: Tax

Real property owners in Canada should be aware that their tax obligations may differ depending on whether a property is used for residential (such as renting as a home or apartment) or for commercial purposes (such as renting for business use).

Canadian taxpayers, including content creators, influencers, and digital entrepreneurs, who earn income from digital marketing activities—including online advertising through platforms such as Google AdSense, promotional services linked to NFT projects, and sponsorship arrangements with offshore entities—often assume that this income is not subject to GST/HST or is automatically zero-rated because it involves non-Canadian counterparties.

Employer Health Tax Ontario (EHT) is a critical provincial payroll tax that continues to generate significant tax audit disputes and litigation risk for Ontario employers. As businesses grow, restructure, or adopt more complex payroll and corporate arrangements, exposure to an Employer Health Tax reassessment increases materially.