Since we’ve been talking about it, it will officially happen on January 1, 2021: the total elimination of restricted ITRs for large businesses! As of January 1, 2021, large businesses will have the same treatment as other businesses in terms of claiming the QST paid on all their expenses. Be sure to adjust your accounting system. In summary, expenses subject to ITR restrictions include: Road vehicles weighing less than 3,000 kg that must be registered under the Highway Safety Code to operate on public roads (“restricted vehicles”); Gasoline used to power the engines of restricted vehicles except for diesel; Improvements
Read More
A sales tax in Alberta?
Canadian provinces generally have a provincial sales tax or are part of the harmonized sales tax which includes a provincial portion. Only Alberta and the 3 territories have no provincial or territorial sales tax. More and more people seem to believe that it would be feasible and beneficial for Alberta to implement its own sales tax given the state of its public finances. Follow this link to a CBC article.
Read More
Manual osteopathic services: taxable?
The CRA has just published an interpretation letter that deals with manual osteopathic services, among other things. Here are some passages: For purposes of section 7, to be a practitioner in respect of osteopathic services, a person must be licensed or otherwise certified to practise the profession of osteopathy in the province in which the service is supplied (paragraph (b) of the definition of practitioner), or, where the person is not required to be licensed or otherwise certified to practise the profession in that province, the person must have the qualifications equivalent to those necessary to be so licensed or
Read More
COVID-19: B.C. PST Rebate on Select Machinery and Equipment
In its Economic Recovery Plan presented yesterday, the Government of British Columbia introduced various tax measures to help businesses including, among others, a temporary PST rebate program on select machinery and equipment. For more information, you can follow this link.
Read More
Order Respecting Time Limits Under the Excise Tax Act (COVID-19)
Certain time limits under the Excise Tax Act and the Income Tax Act have been extended in the context of Covid-19. The following time limits are extended for up to 6 months. However, in all cases, these extensions will not extend beyond December 31, 2020. The issuance of an assessment, reassessment, or additional assessment for a registrant’s GST/HST returns or certain amounts of GST/HST payable, penalties, rebates, or interest, that would otherwise have expired on or after May 20, 2020. The granting of an extension to file a Notice of objection in respect of an assessment that would otherwise
Read More
Excise and GST/HST News – No. 108 of September 2020
In the latest Excise and GST/HST News – No. 108 of September 2020, the CRA has clarified certain issues regarding, among other things, the Canada Emergency Commercial Rent Assistance Program (CECRA) and the GST/HST treatment of manual osteopathic services. 1. Canada Emergency Commercial Rent Assistance Program (CECRA) There is no GST/HST applicable with respect to payments received by the commercial property owners from CMHC under the CECRA program. The forgivable loans provided by CMHC under the CECRA program are exempt supplies of financial services. The rent reduction agreement is an amendment to the lease agreement between the commercial property owner and
Read More
British Columbia: Clarification of Sales Tax Changes in the context of COVID-19
The British Columbia Ministry of Finance has announced further details of its COVID-19 Action Plan-19. As part of this plan, the following sales tax filing and payment dates are extended to September 30, 2020: Carbon Tax Motor fuel tax, including the International Agreement on Fuel Taxes Provincial Sales Tax (PST), including the municipal and regional district tax on accommodation Tobacco Tax Returns and payments with due dates after March 23, 2020 and before September 30, 2020 will now have to be made by September 30, 2020. This deferral is automatic. It will be possible to continue to file returns according
Read More
Deferral of sales tax remittances (GST/HST/QST)
On March 27, the Government of Canada and the Government of Quebec announced measures to defer payment of GST/HST and QST returns until June 30, 2020. Due to the harmonization of the two regimes, registrants should: File their GST/HST and QST returns within the usual filing deadline; No late-filing penalties will be imposed on registrants who cannot file their returns on time if they file their returns on or before June 30, 2020. Pay on or before June 30 the amounts owing for returns covered by these deferrals. This deferral of filing and payment also applies to the Customs duties
Read More
Manitoba : Retail Sales Tax (RST) Deadline Extended
Retail Sales Tax (RST) returns for small and medium businesses with monthly RST remittances of no more than $10,000 per month that would normally be due on April 20th and May 20th will now be due on June 22, 2020. Businesses that file on a quarterly basis that have a due date of April 20, 2020 will now have the due date extended to June 22, 2020. Businesses that qualify for the above filing extension that were not able to file and remit their February sales tax return by the March 20th due date will not be assessed a late
Read More
Saskatchewan: Three Month PST Remittance Deferral and Audit Suspension
The Government of Saskatchewan has announced on March 20, that Saskatchewan businesses who are unable to remit their PST due to cashflow concerns will have relief from penalty and interest charges. Businesses that are unable to file their provincial tax return(s) by the due date may submit a request for relief from penalty and interest charges on the return(s) affected. Audit program and compliance activities have been suspended. For more information, follow this link.
Read More