Many employers with pension plans must remit GST/HST amounts by January 31, 2022. Employers that are GST/HST registered and that offer a registered pension plan to their employees may be subject to GST/HST pension plan rules where that plan governs a trust. Under these extensive rules, employers are deemed to have made taxable supplies to their pension plan and must remit related amounts of GST/HST. Employers subject to these rules, and that have monthly GST/HST reporting periods with a December 31 year-end, are required to remit those amounts of GST/HST by January 31, 2022. Similar rules apply for QST purposes.
It is important for employers to closely follow these complex rules, which also extend to master trusts in pension plan structures, to avoid costly tax errors. Specifically, amounts of GST/HST and QST owing under these rules that are not remitted on time by employers are not eligible for pension entities' rebates.
For more information, see TaxNewsFlash-Canada 2021-59, "Employers and Pension Plans — December 31 GST Obligations" or contact your KPMG adviser.
Information is current to January 10, 2022. 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
