Many employers must meet extensive obligations under the GST/HST and QST pension plan rules.
Not only do these employers have to meet their usual requirements under the current rules, they also have to account for recent changes related to their master trusts. As they prepare for their upcoming tax obligations, employers with a December fiscal year-end that offer registered pension plans to their employees and pension entities of registered pension plans should ensure that they apply these rules correctly to avoid tax errors that could limit the pension entities’ rebates. In addition, employers and pension entities should also consider whether there may be opportunities to claim additional input tax credits (ITC) or rebates.
It’s essential that employers and pension entities meet all their obligations under the GST/HST and QST pension plan rules, even though this can be challenging for complex structures. The tax authorities continue to monitor employers to ensure they are fulfilling these obligations and to review pension entities’ rebate claims. Employers who are not properly meeting their obligations may be assessed tax and interest.
Further, employers and pension entities should review their structures, investments, and tax costs to determine if they have overlooked any opportunities to increase their tax efficiency. These opportunities may depend on the type of entities involved in the structure and the types of supplies.
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