Large businesses are no longer required to repay input tax credits under Ontario HST
Large businesses are essentially no longer required to repay input tax credits for the provincial component of the Ontario HST that becomes payable on or after July 1, 2018. However, even if the Ontario recapture rate is now reduced to zero, and as such no net recapture input tax credits (RITCs) are generally required to be paid for Ontario HST payable on or after July 1, 2018, large businesses may continue to have related reporting requirements. Based on CRA's Schedule B, it appears that large businesses may still be technically required to report the amount of gross RITC that are subject to the Ontario RITC rules on Schedule B until June 30, 2021 to be compliant with the GST/HST.
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Information is current to August 21, 2018. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500