Many credit unions in Canada may now be required to file an annual GST/HST and QST return for selected listed financial institutions (SLFIs).
Many credit unions may now be required to file an annual GST/HST and QST return for selected listed financial institutions (SLFIs). Credit unions that now qualify as SLFIs under proposed changes to the GST/HST rules may have to adjust their systems to ensure they capture the right data to file these complex returns. For credit unions that were already SLFIs, the proposed measures could alter the provincial attribution percentages for certain provinces under their special attribution method (SAM) calculations and the related total tax costs.
Finance proposed changes to the SLFI rules for credit unions on July 22, 2016, among other amendments. These proposed GST/HST measures broaden the rules used to determine whether a credit union is a SLFI as well as amend some of the calculations of the provincial attribution percentages under the SAM formulas. The rules are proposed to apply for any reporting period that begins after July 22, 2016.
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