A Canadian company called Axglo Inc. is facing a retroactive tax bill of about $500,000 from Canada's CBSA for importing golf carts manufactured in China, which were mistakenly categorized as electric vehicles (EVs). This situation is not unique, with at least one other company, JPSMGolf, receiving a similar tax bill of $178,000. The companies are facing hefty interest charges and must either pay the bill or post a bond to appeal the ruling. The issue stems from a 17-month period in 2024-25 when Canadian tariffs on Chinese EVs were at 100%.
Written by the local model on 2026-09-04,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
An Ontario company called Axglo Inc. is facing a $500,000 tax bill from the Canada Border Services Agency (CBSA) for importing golf carts that were classified as electric vehicles (EVs). This is similar to what happened to another Canadian company, JPSMGolf of Pickering, Ont., which received a $178,000 tax bill earlier this year. The companies argue that their motorized push carts are not actually EVs, but rather golf equipment designed for transporting bags and accessories across the course. Axglo Inc.'s director of operations, Hanson Xie, says his company is profitable but doesn't have the money to pay such a large tax bill. This is part of a larger issue related to Canada's tariffs on Chinese EVs, which has also affected other companies that import and sell mobility scooters and power wheelchairs. The situation raises concerns about the impact of Ottawa's classification system on small businesses in Canada.
Written for “Canada China EV Tariffs” on 2026-09-05,
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The model judged this article politically coded and scored it +0.35, but none of the 1 quote(s) it offered could be found in the article text, so the score is not published.
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Leaning score withheld for article 3940: no verified evidence · logged 2026-09-04
An Ontario company that is being threatened by a massive retroactive tax bill because its golf carts were categorized by Ottawa as electric vehicles (EVs) isn’t alone.
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carts → threaten → vehicles
At least one other Canadian company that also has its motorized push carts manufactured in China says it has also received a tax bill from Canada Border Services Agency (CBSA) that is large enough to threaten its business.
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that → have → business
Hanson Xie, director of operations of Markham, Ont.-based Axglo Inc., says the federal government has told his company to pay about $500,000 in back taxes for the importation of its carts.
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government → say → carts
The three and four-wheeled buggies are just large enough to carry a golf bag, but have never been confused with an electric-powered sedan or sport utility vehicle.
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buggies → carry → sedan
Xie said his six-person company, which has been in the golf cart business since 2009, is profitable but doesn’t have the money to cover an unexpected bill of that size.
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which → say → size
“What type of small business has $500,000 to pay CBSA?”
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type → have → CBSA
As National Post reported late last month, Xie’s tax tale is similar to JPSMGolf of Pickering, Ont., a competitor that had been hit earlier this year with a tax bill of $178,000.
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that → report → 178,000
In both cases, the companies are facing hefty interest charges as they look for solutions.
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they → face → solutions
The government has an appeal process for such matters, but companies say they must first either pay their tax bill or post a bond that is lost if they lose the appeal.
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they → have → appeal
It’s unclear how many other Canadian companies that make small motorized products have also been hit with retroactive tax bills because they’ve been categorized as EVs.
uncertain
they → ’ → EVs
The domestic golf cart business has only a handful or so players, but small businesses that import and sell mobility scooters, power wheelchairs and other electric or battery-powered gadgets may also fall under the same automotive classification.
uncertain
that → have → classification
In a letter to JPSMGolf earlier this year, CBSA confirmed its ruling that his golf carts are “undoubtedly” considered EVs because they “are conveyances used by the golfer to get their bag and associated accessories across the golf course during play.”
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they → confirm → play
Finance Canada, which categorizes importers’ goods, was unavailable for comment.
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which → categorize → comment
When contacted about the JPSMGolf case, a CBSA spokesperson said that the department couldn’t comment on specific company cases, nor does it have the authority to deviate from the wording of surtax rulings.
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it → contact → rulings
But an Ottawa customs broker said he regularly deals with categorization problems.
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he → say → problems
Olexiy Tyshchenko, of Ambassador Customs Brokerage, said not every product fits neatly into one of the government’s specific categories, especially when it comes to new technologies and products.
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it → say → technologies
“This happens quite often,” said Tyshchenko.
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Tyshchenko → happen → ?
“I’m not surprised.”
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I → ’m → ?
The two Ontario golf cart companies’ retroactive tax bills stem from a 17-month window in 2024-25 where Chinese-made EVs were taxed by Ottawa at a rate of 100 per cent, following a brief trade war between the two countries.
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EVs → stem → countries
The Trudeau government applied the tariff to protect the Canadian auto industry and to stay on side with similar policies by the United States and some other western countries.
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government → apply → States
That trade war and the surtax ended earlier this year after the Carney government reached a deal with Beijing to allow 49,000 Chinese EVs (about 3 per cent of the Canadian market) into the Canadian market at a tariff rate of 6.1 per cent.
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government → end → cent
In exchange, China agreed to drop its tariffs on Canadian seafood and some key agricultural products.
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China → agree → seafood
