• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/27/2013

Canada - Busineses, financial institutions assessed GST/HST information  

September 27: The Canada Revenue Agency has started to assess what are described as “hefty penalties” relating to the GST/HST annual information return that many large businesses and financial institutions across Canada must file.

Businesses and financial institutions required to file these returns need to determine whether they have filed all required returns and whether the returns were filed correctly. The penalty, which can be as high as $100,000* per return, can apply to the failure to file, to filing late, and to misreporting amounts on the return.

Financial institutions and many large businesses that do not fit the ordinary definition of a “financial institution” must file form GST111, Financial Institution GST/HST Annual Information Return (the annual information return). Generally, qualifying entities have to file this return if they are GST/HST registrants with an annual income of more than $1 million.

Read a September 2013 report prepared by the KPMG member firm in Canada: CRA Starts to Assess Hefty New Penalty for Annual GST/HST Information Returns

*$ = Canadian dollar

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