Canadian Tax Adviser, December 11, 2015. Although Newfoundland and Labrador's incoming government has publicly said that it intends to cancel the province's upcoming HST increase, it is unclear whether this increase to 15% (from 13%) can be cancelled before January 1, 2016, as per the federal-provincial agreement on this matter. We understand that the federal government is willing to accommodate the cancellation of the HST rate increase. However, there has not yet been a federal or provincial news release that officially confirms the cancellation of rate increase as of January 1, 2016.
The previous provincial government announced its intent to increase the HST effective January 1, 2016 in its budget tabled on April 30, 2015. In July, the government released general descriptions of the transitional rules related to the HST rate increase, some of which applied immediately to certain industries, such as the new housing industry. Businesses should carefully review any upcoming news release to determine when the HST rate increase will be officially cancelled, the effects on any transitional rules as well as the system and process changes that may have to be readjusted.
For more information, contact your KPMG adviser.
Information is current to December 10, 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