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Act Now - Ontario RST Refund Final Deadline Looming 

Canadian Tax Adviser


October 16, 2012


You still have time to claim refunds to recover overpaid Ontario Retail Sales Tax (RST) before the upcoming deadline. Ontario announced earlier this year that it was shortening its RST refund period to no later than December 31, 2012. Though this deadline is approaching, businesses that act now may still benefit from this opportunity. Ontario RST and other overpaid taxes can quickly be identified with the help of sophisticated technology.

Act now for potential refunds
Though Ontario replaced its RST by introducing the HST effective July 1, 2010, the province had maintained the four-year deadline to claim overpaid RST. In its 2012 budget, Ontario announced that it was shortening this four-year period by as much as 18 months, depending on the circumstances.


If your organization has overpaid Ontario RST, you have to act now to identify and recover those amounts. KPMG can help you with this process.


Why do businesses overpay?
Many businesses have unknowingly overpaid Ontario RST or other taxes at some point for various reasons, including:


  • Incorrectly applying transitional rules for Ontario RST and HST
  • Paying Ontario RST on exempt goods and services
  • Paying Ontario RST on goods or services consumed outside of Ontario
  • Incorrectly valuing self-assessed taxable goods and services
  • Making errors in self-assessment and processing
  • Having RST issues related to coupons and loyalty programs
  • Adjusting sales amounts.


Why do public sector organizations overpay?
Like businesses, many public sector organizations have overpaid Ontario RST and other taxes for similar reasons. Also, these organizations may have overpaid because they may not have claimed various exemptions specific to them, including exemptions for some publications and other printed matter and for prepared food products.


These overpayments of taxes are often recoverable if claimed before specific deadlines. For Ontario RST, this deadline is now approaching.


How KPMG can help
KPMG can help you identify overpaid Ontario RST and other indirect taxes quickly and efficiently by using advanced technology to access, analyze and compare a large volume of transactional data from your systems and validate recovery findings using advanced transaction audit techniques. We can also help you complete Ontario RST refund claims before the December 31, 2012 deadline and manage any audits of these claims by the tax authorities.


For more information, contact your KPMG adviser.





Information is current to October 16, 2012. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.


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