Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 128983
Business Number: [...]
April 8, 2011
Dear [Client]:
Subject:
GST/HST INTERPRETATION
PROPOSED LAW/REGULATION
Request to change the reporting period of a financial institution
Thank you for your letter of [mm/dd/yyyy], concerning the request by [...] ([the Company]) to change its reporting period for GST/HST purposes. We apologize for the delay in responding to your request.
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Based upon the information in the letter and our telephone conversation of [mm/dd/yyyy], we understand that [the Company] is [...] that is registered for GST/HST purposes. Currently, [the Company] has a monthly reporting period and a December 31 fiscal year end.
Interpretation Requested
[The Company] would like to change its GST/HST reporting period from monthly to annual, effective [mm/dd/yyyy], or if this is not possible, effective [mm/dd/yyyy].
Interpretation Given
As [the Company] is [...], it is a financial institution referred to in paragraph 149(1)(a), and accordingly a listed financial institution as defined in subsection 123(1).
Currently a listed financial institution that is a GST/HST registrant with a monthly or quarterly reporting period would be able to elect, using Form GST20, Election for GST/HST Reporting Period, to have an annual reporting period if its threshold amount for a fiscal year does not exceed $1,500,000. The election would be effective the first day of the fiscal year. The election to change from quarterly to annual filing would be required to be filed no later than three months after the beginning of the fiscal year in which the election is to take effect. The election to change from monthly to annual filing would be required to be filed no later than two months after the beginning of the fiscal year in which the election is to take effect.
As indicated in the document entitled Proposed Amendments to the GST/HST Legislation and the Backgrounder, Modifications to the Proposed Financial Institution (FI) Rules for the Harmonized Sales Tax (HST) released by the Department of Finance on January 28, 2011, it is proposed that sections 246 and 247 of the ETA be amended to allow a listed financial institution to revoke a previously made election to be a monthly or quarterly filer, effective on the first day of the fiscal year of the listed financial institution by filing a notice of revocation in prescribed form not later than the day on which the revocation is to become effective or any later day that the Minister may allow.
These proposed amendments to sections 246 and 247 would apply to fiscal years of a listed financial institution that end on or after July 1, 2010.
A new form to file a notice of revocation of a previously made election to be a monthly or quarterly filer is currently being developed to reflect this proposed change. In the interim, a notice of revocation may be filed by sending a letter to the following address:
Summerside Tax Centre
275 Pope Road
Summerside, PE C1N 6A2
The letter should be on the registrant's letterhead, have a clear subject line such as "Notice of Revocation of monthly (or quarterly) reporting period election for a Listed Financial Institution" and be signed by an authorized person of the registrant. It should include the name and business number of the registrant, a statement that the registrant is a listed financial institution, and the effective date of the revocation (i.e., the first day of the fiscal year).
As we discussed in our telephone conversation, we will forward your letter of [mm/dd/yyyy], to the Summerside Tax Centre, on behalf of [the Company], as a notice of revocation of its monthly reporting period election, effective [mm/dd/yyyy].
The foregoing comments represent our general views with respect to the proposed amendments to the ETA as they relate to the subject matter of your request. Any change to the wording of these proposed amendments or any future proposed amendments to the ETA, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, do not bind the Canada Revenue Agency with respect to a particular situation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-0328. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Katherine Lairson
Financial Institutions Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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