Canada’s Budget 2025 Targets GST/HST Carousel Fraud with Reverse Charge Mechanism

• A New Zealand farmer, John Bracken, was convicted of a massive GST fraud scheme involving false invoices and $17.4 million in fraudulent refunds.
• A court ordered forfeiture of most assets tied to the fraud, including properties held through a family trust, saying Bracken still benefited from and influenced them.
• The judge allowed the family to keep one farm worth $3.7 million but ordered the rest seized to recover about $13 million.
• The article then shifts to Canada, where Budget 2025 proposes a reverse charge mechanism to help stop GST/HST carousel fraud, especially in telecom services.
• Under the proposed Canadian rule, resellers—not suppliers—would self-assess the tax, reducing opportunities for refund fraud.

Source: goodservicetax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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