Managers - Don't Miss GST/HST and QST Obligations | KPMG | CA

Managers - Don't Miss GST/HST and QST Obligations for You and Your Investment Plans

Managers - Don't Miss GST/HST and QST Obligations

Canadian Tax Adviser, June 14, 2016 Many fund managers, including mutual and segregated fund managers, should consider certain GST/HST and QST questions as they help their investment plans meet important tax obligations by June 30, 2016. To avoid processing delays and potential compliance penalties and interest, these managers must make accurate calculations, properly file the correct GST/HST and QST returns and remit the correct amount of taxes to the appropriate tax authorities, among other requirements. Managers should also ensure that they adjust their "blended rate" calculations to take into account the upcoming HST rate changes.

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Selected listed financial institutions - Joint filing election available

Investment plans that qualify as selected listed financial institutions and their managers can jointly file certain elections to help reduce the administration of the GST/HST and QST compliance obligations. However, the related rules and tax calculations can be complex. 

Managers and investment plans that have made these joint filing elections may want to review the following items to help them determine if they are meeting their compliance GST/HST and QST obligations:

  • What GST/HST and QST elections have the managers and investment plans filed with the CRA?
  • Who has to remit any amounts of tax owed by the investment plans and to which tax authorities (CRA or Revenue Quebec)?
  • Have the managers remitted the GST/HST and QST to the appropriate tax authorities throughout the year and in the correct reporting periods?
  • Were the "blended rates" adjusted to reflect the upcoming HST rate changes?

The type of elections filed and whether the managers are registered for QST purposes will determine the compliance obligations for both the managers and the investment plans.

For more information, contact your KPMG adviser and see TaxNewsFlash-Canada 2016-29 "Reminder - Don't Miss Your GST/HST June Deadlines" dated May 24, 2016, and TaxNewsFlash-Canada 2015-28, "Investment Fund Managers - Don't Miss New Deadline for Filing QST Returns by November 20" [PDF 72.3 KB], dated October 28, 2015.

Disclaimer

Information is current to June 14, 2016. 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

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