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