Many employers must meet extensive GST/HST and QST obligations by December 31, 2023. Affected employers that offer registered pension plans to their employees, and have monthly GST/HST and QST reporting periods with a December 31 year-end, must remit amounts of GST/HST (and, if applicable, QST) by January 31, 2024 under the pension plan rules. Additionally, certain employers, pension entities and master trusts must also determine if recent GST/HST changes may affect their specific tax calculations and filing obligations.

Employers must ensure they meet their tax obligations under these complex rules, which also extend to master trusts in pension plan structures, to help minimize potential tax costs. For example, where employers do not remit GST/HST and QST owing under these rules on time, their pension entities that would generally be eligible to claim pension entity rebates relating to these tax amounts, would not be allowed to claim such rebates. The employer’s tax obligations under these complex rules are generally now part of tax audit processes. Tax authorities continue to review filed pension entity rebate applications, and to include employers’ obligations related to GST/HST pension plan rules in their audit processes.

Download this edition of the TaxNewsFlash to learn more.