• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 12/24/2013

Canada - Indirect tax compliance issues for 2013-14 

December 24:  Many businesses—including those that provide taxable benefits or pension plans to their employees—soon will have to take into account recent changes to the GST/HST* as the businesses prepare to meet upcoming tax compliance deadlines such as filing returns, making elections, and remitting indirect taxes.

*GST = goods and services tax; HST = harmonized sales tax; QST = Quebec sales tax; PST = provincial sales tax

In particular, several provinces made significant changes in 2013 to their HST, PST, or QST rules, and Canada’s federal government announced changes to some GST/HST pension plan rules.

Action steps

Businesses may want to review some of these indirect tax changes if they:

  • Provide taxable benefits to employees
  • Have a registered pension plan for its employees
  • Have more than $1 million* in financial revenues
  • Are financial institutions with activities, employees or members in Quebec
  • Import taxable goods or services into Manitoba, where the rate was increased to 8% (from 7%) effective 1 July 2013
  • Currently use the 5% simplified method for large businesses for employee expense reports for QST purposes

Read a December 2013 report prepared by the KPMG member firm in Canada: ABCs of Indirect Tax Compliance Issues for 2013-14

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