October 28, 2015, No. 2015-28. If you are an investment fund manager that is not registered for QST purposes and you have investors in your funds that are located in Quebec, you may have to start making your QST remittances monthly or quarterly (instead of annually) under new legislation that became law on October 21, 2015. If these rules apply to you, you will have to file your QST returns for the current year within 31 days of October 21, 2015. Since that deadline falls on a Saturday, managers should file their QST returns no later than Friday November 20, 2015. As such, you must act now to make sure you file your QST forms on time.
Investment fund managers, including mutual and segregated fund managers, (managers) that may not have applied the QST rules correctly over the last few years must also act quickly to help limit the effect of possible interest and penalties now that the new legislation has been enacted.
Based on the new rules, many managers that have made the GST/HST compliance election known as the “tax adjustment transfer election” (TATE) with their investment plans (funds) now have to remit QST amounts to Revenue Quebec based on the same reporting periods they use for GST/HST (generally monthly or quarterly). Previously, managers that are not QST-registered had to remit QST amounts based on their funds’ reporting periods, which are generally annually.
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Information is current to October 27, 2015. The information contained in this TaxNewsFlash-Canada 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.