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Canada: Employers and pension plans; GST/HST and QST requirements

Canada: Employers and pension plans; GST/HST and QST

The deadline for many employers to meet extensive obligations under the goods and services tax / harmonized sales tax (GST/HST) and Quebec sales tax (QST) pension plan rules is 31 December 2019.

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Employers that offer registered pension plans to their employees and that have monthly GST/HST and QST reporting periods with a 31 December year-end are required to remit amounts of GST/HST (and, if applicable, QST) related to these pension plans by 31 January 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 31 January 2020) or that make other possible miscalculations could limit their pension entities’ rebates. In addition, affected employers need to consider accounting for supplies related to the master trusts in their pension plan structure and also whether there may be opportunities to claim additional input tax credits or rebates.


Read an October 2019 report prepared by the KPMG member firm in Canada

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