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Canada To Improve GST/HST Legislation

Tuesday, July 26, 2016

The Canadian Government has announced that it will revise and clarify goods and services tax (GST) and harmonized sales tax (HST) rules.

The Government has released draft legislative and regulatory proposals for consultation. They include measures to:

  • Revise the GST/HST rules applicable to pension plans, to ensure that they apply fairly and effectively to pension plans that use master trusts or master corporations;
  • Improve the clarity and effectiveness of the GST/HST rules applicable to certain pension plans and financial institutions, by introducing clarifications and technical improvements to those rules;
  • Extend the application of the GST/HST rules applicable to selected listed financial institutions, to include group trusts for registered education savings plans;
  • Revise and modernize the GST/HST drop shipment rules, to enhance their effectiveness and introduce technical improvements;
  • Clarify the application of the GST/HST to supplies of municipal transit services, to accommodate the ways in which those services are provided and paid for today; and
  • Introduce housekeeping amendments to improve the accuracy and consistency of the GST/HST legislation and regulations.

The consultation will close on August 31.