Insurers only have a short time to recover GST/HST paid related to cross-border reinsurance with affiliates.
Under changes to the GST/HST self-assessment rules for certain cross-border charges from related parties, the “margin for risk transfer” and “ceding commissions” related to imported reinsurance services, are no longer part of “loading” and “qualifying consideration” for GST/HST purposes. Financial institutions are no longer required to self-assess on these two specific components of imported reinsurance services. Qualifying taxpayers can request in writing that the CRA reassess previously self-assessed GST/HST. The request must be made before June 22, 2017.
Download this edition of the TaxNewsFlash to learn more.
© 2018 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.