Canadian Tax Adviser, December 14, 2015. The new government of Newfoundland and Labrador has officially confirmed that its HST will remain at 13% now that the proposed HST rate increase to 15% originally planned for January 1, 2016 has been cancelled. In a provincial bulletin released December 14, 2015, the province confirmed that the federal government has agreed to its request to cancel the proposed increase and that the related transitional rules are no longer applicable.
Newfoundland and Labrador also confirmed that the HST rate increase cancellation will not affect its new 25% public service body (PSB) rebate of the provincial component of the HST for municipalities effective January 1, 2016. The bulletin reiterates the transitional rules related to this new PSB rebate (previously released on July 15, 2015) and includes a related anti-avoidance rule. The bulletin also provides details for municipalities on the streamlined accounting methods.
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Information is current to December 14, 2015. The information contained in this publication 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