Section 238 - Returns

Subsection 238(1) - Filing Required

Administrative Policy

May 2017 CPA Alberta Roundtable, GST/HST Q.1

CRA has no authority to transfer GST/HST returns between entities

The correct amount of net tax may be reported and remitted by the incorrect person, or the return is filed for a period for which CRA is not expecting return, and the taxpayer is assessed a late-filing penalty. How can this be avoided? CRA responded:

Under section 238 … every registrant is required to file a GST/HST return for each of their reporting periods in accordance with the timing requirements set out in that section…. There is no provision in the ETA under which the CRA is permitted to transfer or file a return for a registrant from one legal entity to another. To ensure we are upholding our commitment to safeguarding the tax information entrusted to us and maintaining an accurate information trail, we require written correspondence from the registrant stating specific details before making any changes to a GST/HST return that has been finalized in our systems.

When the CRA processes a GST/HST return, certain system edit checks are completed to ensure that it is correct, valid, and ready to be posted. If the return being filed is for a period that is not expected in our system, the return is sent for further review and the appropriate action is taken in accordance with our procedures, which may include an attempt to contact the taxpayer to determine the correct period to apply the return to. If the return cannot be posted to the account and must be refiled, there is no mechanism to provide automatic relief.

CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 4

initial short taxation year

In general, where a corporation became a GST/HST registrant on the first day of its fiscal year and its reporting period as established under s. 245(2) is a fiscal year, its first annual GST/HST return is required to be filed within three months after the end of its fiscal year even if its first fiscal year is a short year.

P-149R Administrative policy regarding adjustment to the goods and services tax/harmonized sales tax return November 1999

Returns adjusted by writing in, not filing amended return

Amounts included on previously filed GST/HST returns may be adjusted, except where a person is attempting to increase the amount of input tax credits (ITCs) or other credit adjustments without a corresponding increase in tax liability for the same reporting period.

All requests for adjustments to previously filed GST/HST returns should be made in writing, provide details of the requested adjustments, and be addressed to the registrant's local tax services office.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 296 - Subsection 296(1) 201

GST M 500-2 "Returns and Payments"

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 221 - Subsection 221(1) 24

Subsection 238(2)

Administrative Policy

RC4022 "General Information for GST/HST Registrants"

Inclusion of imported taxable supplies on line 405

Imported services and intangible personal property …

If you consume, use, or supply the imported services or IPP less than 90% in your commercial activities, you generally have to report the GST or the 5% federal part of the HST on line 405 of your GST/HST return and remit the tax directly to us. The tax is calculated on the amount you were charged for the service or IPP and is payable in the reporting period in which the amount for the service or IPP was paid or became payable.

Summary of line 104 adjustments

Line 104 – Adjustments

Complete line 104 only if you have to make adjustments to increase the amount of your net tax for the reporting period. Enter the total of all adjustments. For example:

  • If you wrote off the GST/HST amount of any bad debts on a previous return, and then recovered some or all of those debts, add the amount of the GST/HST you have recovered. For more information, see Bad debt recovered.
  • If you have claimed 100% ITCs for lease payments for a passenger vehicle during the year, and these lease payments are more than the maximum lease costs that are deductible under the Income Tax Act, once a year you have to add the amount of the ITCs over-claimed on line 104. The maximum lease cost is $800 per month (this amount does not include federal or provincial taxes). Although you are allowed to claim 100% ITCs for lease payments greater than $800 during the year, you have to pay back the ITCs claimed for the portion of lease payments that are greater than $800 per month.
  • If you have claimed 100% ITCs for meal and entertainment expenses during the year, once a year you have to add 50% (or the applicable percentage for Long-haul truck drivers) of those credits to your net tax. For more information, see Meal and entertainment expenses. …

Summary of line 405 adjustments

Line 405 – Other GST/HST to be self-assessed

Complete this line if:

  • you are a registrant and have to self-assess the provincial part of the HST on property or services brought into a participating province. For more information, see Tax on property and services brought into a participating province;
  • you are a registrant who imports a taxable supply for consumption, use, or supply in less than 90% of your commercial activities and you have to self-assess the GST/HST. Enter on this line the total amount of the GST/HST due on imported property or services. For more information, see Imported goods and Imported services and intangible personal property.
  • you are an international organization and internal use of a support resource or intangible resource occurs in Canada for a supply of a service or intangible personal property that was made outside Canada, but that is not exclusively (90% or more) for consumption, use, or supply in commercial activities, and you have to self-assess the GST/HST on the deemed supply; or
  • you are a financial institution and a qualifying taxpayer and have to self-assess the GST/HST using the special rules for financial institutions. For information, see Technical Information bulletin B-095, The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules).
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 240 - Subsection 240(3) 76

GST/HST Notice 308 GST/HST and Investment Limited Partnerships July 2018

Filing requirement for an ILP that is not a SLFI and not a registrant (p. 13)

If an ILP is a non-registrant and is not an SLFI, pursuant to subsection 238(2) it is only required to file a GST/HST return (Form GST62, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (Non-personalized) or Form RC7262, Goods and Services Tax/Harmonized Sales Tax (GST/HST) and Quebec Sales Tax (QST) Return (non-personalized)) for each calendar month for which it has net tax remittable. This return must be filed within one month of the end of the particular calendar month. If an ILP is a non-registrant and an SLFI under the proposed amendments, it would be required to file an interim GST/HST return (Form GST62 or Form RC7262) for each calendar month, and make an interim net tax payment or claim an interim net tax refund for each period. The interim GST/HST return would need to be filed within one month after the end of the month along with an interim net tax payment, where required. To reconcile the interim net tax with the actual net tax, the ILP would complete and file a final return for each reporting period using Form GST494 or Form RC7294, and either remit any additional amount owing or claim a refund of any excess amount previously paid. A final return would need to be filed within six months after the end of the ILP’s fiscal year.

Forms

GST62. Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (non-personalized)

[Line 103] Enter the total of all GST and HST amounts that you collected or that became collectible by you in the reporting period.

[Line 104] Enter the total amount of adjustment to be added to the net tax for the reporting period (for example, the GST/HST obtained from the recovery of a bad debt).

[Line 106] Enter the GST/HST you paid or that is payable by you on qualifying expenses (input tax credits – ITCs) for the current period and ay eligible unclaimed ITCs from a previous period.

[Line 111] Enter the total amount of the GST/HST rebates, only if the rebate form indicates that you can claim the amount on this line. File the rebate application with this return. If you file the return electronically and do not file the rebate application electronically, send the rebate application to us by mail.

[Line 205] Enter the total amount of the GST/HST due on the acquisition of taxable real property.

[Line 405] Enter the total amount of other GST/HST to be self-assessed.

Subsection 238(2.1)

Administrative Policy

GST/HST Notice 308 GST/HST and Investment Limited Partnerships July 2018

Filing requirement for a SLFI registrant with election for monthly or quarterly reporting period (p. 13)

If an ILP that is a registrant and an SLFI under the proposed amendments makes an election to have monthly or quarterly reporting periods, it would be required to file an interim GST/HST return (Form GST34 or Form RC7200) for each reporting period, and make an interim net tax payment or claim an interim net tax refund for each period. Under paragraph 238(2.1)(a), the interim GST/HST return would need to be filed within one month after the end of the reporting period along with an interim net tax payment, where required. To reconcile the interim net tax with the actual net tax, the SLFI ILP would also be required to complete and file a final return for each reporting period using Form GST494 or Form RC7294, and either remit any additional amount owing or claim a refund of any excess amount previously remitted. Under paragraph 238(2.1)(b), a final return would need to be filed within six months after the end of the ILP’s fiscal year.

RC4050 GST/HST Information for Selected Listed Financial Institutions

Distinction between GST34/GST62 interim returns

Instructions for filing out your interim return (GST34/GST62)

Form GST34-2 and GST34-3 are not available on our website. We only provide them in a pre-printed format. …

If you do not receive a personalized return, you can use Form GST62 … . Form GST62 contains all of the same information as Form GST34-2, except you have to enter your personal data.

If you are not registered for the GST/HST, you are considered to be a monthly filer. As a monthly filer you have to file Form GST62 as an interim return for each calendar month.

Calculation of interim tax adjustment based on provincial attribution percentage for previous year (now under SLFI Reg. 48(8)-(10)) (p. 13)

Calculation of your interim net tax adjustment

Generally, your interim net tax is the amount that would be your net tax for your reporting period if the provincial attribution percentage for a particular participating province is your provincial attribution percentage for the participating province for the tax year or for the immediately preceding tax year determined in accordance with the SLFI Regulations, whichever is less (see Element C of the SAM formula). …

Use of GST494 (now, also, RC7294) to calculate interim net tax adjustment (p.14)

Reporting your interim net tax adjustment

For each of your reporting periods:

  • Calculate your interim net tax adjustment as discussed in the previous section. The result is either a positive or a negative amount.
  • If the result is a positive amount, include this amount with any other of your adjustments that you make on line 104 – “Adjustments increasing net tax” of the paper GST34-2 return (or include the amount in your line 105 calculation if you are filing electronically).
  • If the result is a negative amount, you can include this amount along with any other adjustment amounts that you make on line 107 – “Adjustments decreasing net tax” of the paper GST34-2 return (or include the amount in your line 108 calculation if you are filing electronically).

Forms

RC7294 Goods and Services Tax GST/HST) and Quebec Sales Tax (QST) Final Return for Selected Listed Financial Institutions

Who must file

You must file Form RC7294 if you are a person that is:

  • a selected listed financial institution (SLFI) for QST purposes, whether or not you are a GST/HST and QST registrant; or
  • an SLFI for GST/HST purposes, but not for QST purposes, and you are a QST registrant and an annual filer.

This return must be filed within six months of your fiscal year end.

Additional filing requirements for monthly non-registrants

If you are a monthly filer because you are not a GST/HST and QST registrant, you must file:

  • Form RC7262, Goods and Services Tax/Harmonized Sales Tax (GST/HST) and Quebec Sales Tax (QST) Return for Selected Listed Financial Institutions (non-personalized), for each reporting period; and
  • Form RC7294.

GST494 Goods and Services Tax/Harmonized Sales Tax (GST/HST) Final Return for Selected Listed Financial Institutions

Who must file

You must file Form GST494 if you are a person that is:

  • a selected listed financial institution (SLFI) for GST/HST purposes but not for QST purposes, and you are not a QST registrant, or
  • an SLFI for GST/HST purposes, but not for QST purposes, and you are a QST registrant that is a monthly or quarterly filer for QST purposes.

This is the case whether or not you are a GST/HST registrant. This return must be filed within six months of your fiscal year end.

Additional filing requirements for monthly non-registrants

If you are a monthly filer because you are not a GST/HST or QST registrant, you must file:

  • Form GST62, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (non-personalized), for each calendar month unless you also have QST to report in a particular month;
  • Form RC7262 for each calendar month for which you also have QST to report; and
  • Form GST494.

RC7262 Goods and Services Tax (GST/HST) and Quebec Sales Tax (QST) Return for Selected Listed Financial Institutions (non-personalized)

This form is a combined return that is generally used by selected listed financial institutions (SLFIs) for GST/HST and/or QST purposes that are non-registrants that have QST reporting requirements and may also have GST/HST reporting requirements. In addition, SLFIs for GST/HST and/or QST purposes are registrants for GST/HST and QST purposes and have monthly or quarterly reporting requirements may use this form, but would generally use Form RC7200. For the definition of SLFI for GST/HST purposes and SLFI for QST purposes, go to www.cra.gc.ca/slfi.

Note
Do not use
this form if you are an SLFI for GST/HST purposes only that does not have QST reporting requirements. Instead, use Form GST62. Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (non-personalized).