• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 1/28/2014

Canada - Employers must remit deemed GST/HST by 31 January 

January 28:  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—i.e., returns that are due by 31 January 2014.

*Goods and services tax, harmonized sales tax, and Quebec sales tax

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.

Certain employers may have elected to benefit from a recent “relieving measure” relating to the 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 as being made for no consideration and thus are not required 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.

As part of measures announced in the 2013 federal budget, the Canada Revenue Agency 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.

Read a January 2014 report prepared by the KPMG member firm in Canada: Many Employers Must Remit Deemed GST/HST by January 31

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