Basic tax content formula

We have simplified the basic tax content formula to accommodate most registrants. It may not apply to some registrants such as selected listed financial institutions. This formula may not apply to a charity that is a municipality or designated to be a municipality.

Basic tax content formula:

(A - B) × C

where:

A is the GST/HST payable for your last acquisition of the property and for later improvements you made to the property.

B is any rebate or refund of GST/HST you were entitled to claim or would have been entitled to claim if you had not been entitled to claim an input tax credit (ITC) for the GST/HST payable for your last acquisition of the property and for later improvements you made to it, but not including ITCs you were entitled to claim. For charities, this amount usually equals 50% of the amount in "A" above.

C is the lesser of:

• 1; and
• the fair market value of the property at the time of the change-in-use divided by the total cost (not including the GST/HST) for your last acquisition of the property and for subsequent improvements you made to it.

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• Guide RC4082, GST/HST Information for Charities
  

Date modified:

2013-04-12