Distributed investment plans—including investment limited partnerships—need to obtain specific details from investors in order to comply with the GST/HST and QST* obligations.
*GST/HST and QST = goods and services tax / harmonized sales tax and Quebec sales tax
The investment plans need to obtain certain information from investors, and thus need to be preparing to request in writing specific details from many of their investors by 15 October 2020 to meet the GST/HST and QST requirements. Also, certain investors need to start the process of providing specific information to their investment plans—even if they do not receive any formal request.
Complying with the GST/HST and QST information sharing rules means that distributed investment plans have the proper information to update their systems and to calculate certain amounts that must be included in their GST/HST and QST returns. Plans that do not collect the proper data within specific deadlines may see their tax costs increase, while investors may face penalties if they do not share the data within specific timelines as required under the GST/HST and QST information sharing rules.
The GST/HST information sharing rules can vary, based on investor type. Some common questions for distributed investment plans and investors are as follows:
Read an August 2020 report prepared by the KPMG member firm in Canada
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