Canada: Investment limited partnerships now required to file GST/HST returns

Canada: Investment limited partnerships

Many investment limited partnerships (ILPs) were reclassified in 2019 as selected listed financial institutions (SLFIs) and therefore now must file annual GST/HST and QST* final returns for their 2019 fiscal year. These returns are due by 30 June 2020.

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This will be the first year that many ILPs will be required to file these returns, since these entities were reclassified as SLFIs (effective 1 January 2019) under the GST/HST and QST rules.

Some ILPs elected to apply the SLFI rules effective 1 January 2018 (instead of 1 January 2019) and thus file these indirect tax returns last year. Still, these entities need to consider whether they should adjust last year's processes to help alleviate some of the complexity of their calculations for their upcoming GST/HST and QST returns.

To prepare to file their annual GST/HST and QST final returns for SLFIs by 30 June 2020, ILPs will be required, among other tax compliance obligations, to:

  • Calculate their special attribution percentages based on information previously collected from their investors
  • Determine all the GST/HST and QST paid during 2019, including taxes paid to their general managers
  • Cross-check details on their returns against information provided to the tax and regulatory authorities in other filings


Read a May 2020 report prepared by the KPMG member firm in Canada


*GST/HST and QST = goods and services tax / harmonized sales tax and Quebec sales tax

 

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