Many businesses—in particular, financial institutions with a 31 December year-end—must file goods and services tax (GST) / harmonized sales tax (HST) and/or Quebec sales tax (QST) annual information returns by 30 June 2019.
The 30 June deadline not only affects financial institutions that have a 31 December year-end, but affects other types of entities—e.g., corporations and partnerships—that are deemed to be financial institutions under the GST/HST and QST rules. While the GST/HST and/or QST annual information returns are not related to any GST/HST and QST payments, financial institutions and qualifying businesses could face significant penalties if they do not file this return correctly and on time.
These taxpayers need to determine they file the correct annual information return. This form can vary based on the type of entity and whether the entity is administered by the Canada Revenue Agency (CRA) or Revenue Quebec for GST/HST and QST purposes.
As a reminder, most corporations that have made section 150 elections (essentially allowing a financial institution and a closely related corporation to treat certain supplies as exempt financial services) are required to file GST/HST and/or QST annual information returns. Corporate groups need to consider reviewing all entities subject to section 150 elections, as well as entities that have significant financial revenues, to ensure that all annual information returns are properly filed.
Read a June 2019 report prepared by the KPMG member firm in Canada
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