Many financial institutions and some businesses across Canada that have a 31 December year-end must file the GST/HST and/or QST* annual information returns by 30 June 2016. This return applies to financial institutions as well as certain businesses that are deemed to be financial institutions. While the GST/HST and/or QST annual information returns are not related to any GST/HST and QST payments, financial institutions and qualifying businesses could face severe GST/HST and QST penalties if they do not file this return correctly and on time.
* GST/HST and QST = goods and services tax / harmonized sales tax and Quebec sales tax
In general, financial institutions that are registered for GST/HST and have annual income exceeding CAN $1 million must file an annual information return no later than six months after their year-end. For financial institutions with a 31 December year-end, the deadline is 30 June 2016 for the 2015 fiscal year. Similar rules apply for QST.
The Canada Revenue Agency (CRA) can assess a penalty of up to $1,000 per each qualifying line on the form for a failure to file or for misreporting amounts on the return. This could add up to more than $100,000 in penalties. Similar rules apply for QST purposes.
Read a March 2016 report [PDF 53 KB] prepared by the KPMG member firm in Canada: GST/HST and QST Annual Information Returns - Do You Have to File by June 30 Deadline?
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