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: 133089
March 1, 2011
Dear [Client]:
Subject:
GST/HST INTERPRETATION
PROPOSED LAW/REGULATIONApplication of the GST/HST to services provided for a finders fee
Notice of revocation of reporting period election for a listed financial institution
Thank you for your email of February 23, 2011, concerning the proposed amendments to the Excise Tax Act (ETA) with respect to revocation of a reporting period election for a listed financial institution.
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 ETA unless otherwise specified.
Interpretation Requested
You would like to confirm your understanding of the interim procedures for a listed financial institution to file a notice of revocation of a previously filed election to be a monthly or quarterly filer until the prescribed form is available.
Interpretation Given
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 be amended to allow listed financial institutions to revoke a previously made reporting period 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 reporting period 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).
If the notice of revocation is being filed after the first day of the fiscal year in which the registrant would like the revocation effective, the letter should also provide an explanation as to why the notice of revocation is being filed late. A request to file a notice of revocation late will be considered on a case-by-case basis.
At this time, given that these proposed changes were only announced January 28, 2011 and many registrants wanting to file this notice of revocation may have a fiscal year end of December 31, a notice of revocation for a fiscal year ending on or after July 1, 2010 and before July 1, 2011, would generally be accepted provided it is filed before the due date of the first return in the fiscal year for which the notice of revocation will be in effect and no returns for the fiscal year have been filed. For example, if the registrant has a fiscal year end of December 31, 2010 and currently has a quarterly reporting period election, a notice of revocation effective January 1, 2011 would generally be accepted if it is filed before April 30, 2011 provided no return for the first quarter has been filed.
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 613-952-9210. 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,
Dawn Weisberg
Manager Financial Institutions Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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