Employers with pension plans — GST/HST and QST due January 31

Employers with pension plans — GST/HST & QST due Jan 31

GST/HST and QST owing that are not remitted on time cannot be claimed as pension entities’ rebates


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Many employers with pension plans must remit GST/HST amounts by January 31, 2021. Employers that offer registered pension plans to their employees, and that are GST/HST registered, are generally subject to extensive tax rules that deem them to have made taxable supplies to their pension plans, and require them to remit related amounts of GST/HST. Employers subject to these rules, and that have monthly GST/HST reporting periods with a December 31 year-end, are required to remit amounts of GST/HST related to the pension plan rules by January 31, 2021.

It is important for employers to closely follow these complex rules, which also extend to master trusts in pension plan structures, to avoid costly tax errors. Specifically, amounts of GST/HST owing under these rules that are not remitted on time would not be eligible for pension entities' rebates. Similar rules apply for QST purposes.


For more information, see TaxNewsFlash-Canada 2020-86, "Employers and Pension Plans – December 31 GST Obligations" or contact your KPMG advisor.

Information is current to January 18, 2021. 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

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