Global

Details

  • 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




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now