Canada: Indirect taxes due 31 March, taxable employee, shareholder benefits

Canada: Indirect taxes due 31 March, taxable employee

Many employers that offer taxable benefits to their employees will have to remit amounts of GST / HST and QST* related to these benefits by 31 March 2016. These amounts are due each year, and are an actual cost to employers because they are not collected from the employees.

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In determining the proper amounts to remit, employers need to remember that some of their 2015 calculations may be different from last year's calculations due to beginning of the phase-out period of the recaptured input tax credits (RITC) under Ontario's HST. 

Different rules apply for shareholders' taxable benefits. In general, the amounts of GST / HST and QST owing on shareholders' taxable benefits are deemed to be collected on the last day of the corporation's tax year in which the benefit was provided to the shareholders. For example, if the corporation has monthly GST / HST filing period and a 31 December year-end, the corporation must include the GST / HST owing on shareholders' taxable benefits in its December GST / HST return that is due by 31 January. 

*GST / HST and QST = goods and services tax / harmonized sales tax and Quebec sales tax


Read a January 2016 report [PDF 53 KB] prepared by the KPMG member firm in Canada: Employers - Remit GST/HST and QST on Employees' 2015 Taxable Benefits by 31 March 2016 

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