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Many Employers Must Remit Deemed GST/HST by January 31 

Canadian Tax Adviser


January 21, 2014


Dave Schlesinger
National Service Line Leader, Indirect Tax


Many employers that offer registered pension plans to their employees must calculate an amount of deemed GST/HST and QST, if applicable, and remit these amounts, in their monthly December 2013 GST/HST and QST returns. These returns are due by January 31, 2014. Under the GST/HST pension plan rules, qualifying employers are deemed to make taxable supplies to the pension entities of registered pension plans on the last day of their fiscal year. The 2013 calculations will have to take into consideration changes during the year such as British Columbia's return to the GST and PST, Quebec's QST changes and P.E.I.'s new HST.

In particular, special attention to these rules must be paid by an employer that has elected to benefit from a recent relieving measure relating to these pension plan rules to treat actual taxable supplies (as opposed to deemed taxable supplies) made by the employer to the pension entity of the registered pension plans to be made for no consideration and thus not have to collect GST/HST on those actual supplies. These employers must carefully comply with the rules, including the calculations of the amounts of taxes owed and the deadline remittances. This is because, as part of these measures announced in the 2013 federal budget, the CRA is allowed to revoke the election if the employer fails to comply with the rules as required. Similar rules are proposed for Quebec’s QST.


For details on this deadline and other information on the GST/HST and QST pension plan rules, see TaxNewsFlash-Canada 2013-34, "Employers and Pension Plans - Act Now to Meet Upcoming GST/HST Deadlines", and TaxNewsFlash-Canada 2013-17, "Employers - New GST/HST Relief Available Under Pension Plan Rules".


For more information, contact your KPMG adviser.






Information is current to January 21, 2014. 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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