• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 5/2/2013

Canada - Final GST rules for “selected listed financial institutions” 

May 2: Canada’s federal government will publish long-awaited final GST / HST regulations affecting many financial institutions on 8 May 2013.

With the publication of the final regulations, “selected listed financial institutions” (SLFIs) will want to consider a careful review of the more than 150 pages of regulations—including clarifications and new measures—to determine the effect of the regulations on their businesses and whether they have applied the rules correctly for the last few years.

The “selected listed financial institutions attribution method regulations” provide most of the details related to the special attribution method formula used by SLFIs across Canada to recalculate their liability related to the provincial components of the HST.

Some financial institutions may not qualify as SLFIs but may nevertheless be subject to certain rules in the SLFI regulations—such as the information sharing requirements and the related non-compliance penalties (which can be severe).

Now that the federal SLFI regulations are final, SLFIs are one step closer to the release of more Quebec Sales Tax (QST) legislative amendments related to the further harmonization of the QST rules with the GST rules on 1 January 2013. These amendments are coming because Quebec had previously noted that the QST system would be harmonized effective 1 January 2013 with the proposed SLFI rules, but related QST amendments would only be released after the federal regulations were finalized.

Read a May 2013 report prepared by the KPMG member firm in Canada: Selected Listed FIs — Final GST Rules Coming Your Way

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