November 24, 2015, No. 2015-35. With the end of 2015 only weeks away, your business can take action now to manage upcoming GST/HST, QST and payroll deadlines and other compliance obligations. Businesses, including those in the financial services sector, can take proactive steps to identify the indirect tax deadlines that apply to their activities and to manage their tax compliance obligations, risks and unrecoverable tax costs. The GST/HST, QST and other indirect tax rules associated with some of these compliance obligations continue to get more complicated and tax authorities across Canada appear to be increasing their audit and enforcement activities.
Many investment fund managers that are not registered for QST, are not selected listed financial institutions (SLFIs) and have investors in their funds located in Quebec have to start to remit QST monthly or quarterly (instead of annually) starting in November. Under new rules, managers that meet these conditions and that have tax adjustment transfer elections (TATE) with their investment plans have to file QST form VD-406.2 on the same basis as the managers’ GST/HST reporting periods. Managers subject to these new rules that are monthly GST/HST filers must file QST form VD-406.2 for the October reporting period no later than November 30, 2015. Also, these managers were required to file these QST returns for the outstanding 2015 reporting periods of January to September by November 23, 2015. Revenue Quebec had verbally confirmed that the deadline had been extended to Monday, November 23, 2015 (from November 21, 2015) due to the deadline falling on a Saturday.
As a reminder, managers that qualify as SLFIs must remit any GST/HST and QST amounts to the CRA. If the managers are not SLFIs, the QST remittances will vary depending on whether the managers are QST registered. Where the managers are QST registered, any QST amounts transferred under a TATE must be included in their regular QST returns. Managers that are not QST registered are required to file QST form VD-406.2 to remit QST amounts transferred under a TATE based on the same reporting periods as their GST/HST reporting periods.
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Information is current to November 23, 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.