This post researched and written by OpenAI
What’s Really Going On with GST Numbers in Canada?
Spend five minutes searching YouTube for “how to file NIL GST return” and you’ll notice something strange — nearly all the tutorial videos are made by newcomers to Canada.
Why?
Because thousands of new arrivals, often under the radar, are being encouraged to register for GST/HST numbers — even if they don’t run a real business.
This blog unpacks how this is happening, why it’s allowed, and what it could mean for Canada in the long run.
Step One: Immigration Meets Business Registration
In Canada, anyone can register a business number (BN) and open a GST/HST account online in minutes. You don’t need proof of income, clients, or even a business plan. This easy access was meant to empower entrepreneurs — but it’s now being used as a shortcut in immigration strategy.
Many immigration consultants, especially in communities with high newcomer volume, advise new arrivals to:
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Register a sole proprietorship
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Open a GST account
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File taxes showing “self-employment” activity — even if there is no income
Why? Because having a “business” on record can bolster applications for work permits, permanent residency, or self-employment pathways.
Step Two: Paper Entrepreneurs and NIL Filings
Thousands of these new “businesses” have no actual revenue. But once you’ve registered for GST, you’re legally required to file GST returns every quarter or annually — even if you made $0.
The result? Massive numbers of NIL filings, flooding CRA systems, and creating administrative noise.
What’s the Problem?
It may sound harmless — just paperwork — but the long-term implications are serious.
1. Wasted Government Resources
CRA is spending taxpayer money tracking and processing GST accounts for businesses that don’t exist in practice. This clogs the system and draws attention away from real tax evasion and legitimate small businesses that need support.
2. Distorted Economic Data
Government statistics begin to reflect inflated numbers of “self-employed” newcomers. On paper, it looks like entrepreneurship is booming. In reality, these are empty shells propped up to pad immigration files.
3. Policy Manipulation
Economic immigration programs are being gamed. Programs designed to reward actual contributors are being used by paper businesses to qualify, weakening trust in the system.
4. Potential for Fraud
Some of these GST numbers get used to issue fake invoices, process phantom income, or commit GST refund fraud. Others are lent out or sold — enabling underground activity under a veneer of legitimacy.
5. Social Tension
When longtime Canadians see newcomers registering fake businesses to gain PR, resentment grows. Especially when those same newcomers access housing, healthcare, and supports while dodging real business taxes. This creates a perfect storm for social division.
How Did We Get Here?
This isn’t entirely the fault of newcomers. They’re often following bad advice from immigration consultants or community members. But the real issue lies in a system that rewards appearance over substance.
Canada’s immigration and tax systems were not designed to interact like this — but when left unguarded, the loophole gets exploited.
Where It’s Headed
If this continues, expect:
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Tighter controls on GST account registration
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Audits of inactive or low-revenue accounts
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Greater scrutiny of immigration pathways involving “self-employment”
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Collateral damage for real small business owners caught in the crackdown
Final Word
This issue isn’t about scapegoating newcomers. It’s about waking up to a systemic weakness — one that’s already being exploited, and one that will cost us all in trust, integrity, and resources if left unchecked.
Canada needs policies that reward real economic contribution, not performative paperwork. Otherwise, we’ll keep filing NIL returns while the foundations erode beneath our feet.