Canadian credit unions—like many large Canadian financial institutions—must comply with complex indirect tax rules.
Many credit unions and some of their related entities that have a 31 December year-end must file up to two GST/HST and QST* returns by 30 June 2016—the annual information return and/or the final GST/HST return for selected financial institutions.
*GST/HST and QST = goods and services tax / harmonized sales tax and Quebec sales tax
Credit unions must understand and apply all the indirect tax rules as required, including filing requirements and self-assessment rules, or they could face undue tax costs.
Depending on their GST/HST and QST registration status and total revenue, credit unions may be required to file the annual information return, form GST111, Financial Institution GST/HST Annual Information Return, or form RC7291, GST/HST and QST Annual Information Returns for Selected Listed Financial Institutions.
In addition, a credit union that qualifies as a selected listed financial institution (SLFI) for GST/HST and/or QST purposes must file the “final return” regardless of whether the entity is registered for those taxes. The final return is either form GST494, Goods and services Tax/Harmonized Sales Tax (GST/HST) Final Return for Selected Listed Financial Institutions, or form RC7294, Goods and Services Tax/Harmonized Sales Tax (GST/HST) and Quebec Sales Tax (QST) Final Return for Selected Listed Financial Institutions.
Read an April 2016 report [PDF 67 KB] prepared by the KPMG member firm in Canada: Credit Unions - Do You Have to File GST/HST Returns by June 30 Deadlines?
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