This reminder follows an earlier TaxNewsFlash-Canada edition that was published in October 2019
As a reminder, many employers must meet extensive obligations under the GST/HST and QST pension plan rules by December 31, 2019.
Employers that offer registered pension plans to their employees, and that have monthly GST/HST and QST reporting periods with a December 31 year-end, are required to remit amounts of GST/HST (and, if applicable, QST) related to these pension plans by January 31, 2020.
It is important for affected employers to closely follow the complex rules related to these upcoming tax obligations to avoid costly tax errors. Specifically, employers that do not correctly report the GST/HST and QST owing in their December return due January 31, 2020 or that make other possible miscalculations could limit their pension entities' rebates. In addition, affected employers must also ensure they account for supplies related to the master trusts in their pension plan structure and also consider whether there may be opportunities to claim additional input tax credits (ITC) or rebates.
For more information, see TaxNewsFlash-Canada 2019-41, "Employers and Pension Plans — Meet GST/HST Obligations", or contact your KPMG advisor.
Information is current to November 26, 2019. 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
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.