RC4050(E) Rev. 20

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La version française de ce guide est intitulée Renseignements sur la TPS/TVH pour les institutions financières désignées particulières.

Table of contents

• Is this guide for you?
• What's new?
• Definitions
• An overview
  • A listed financial institution
  • A selected listed financial institution
  • A prescribed financial institution
    • Permanent establishment
    • Province of residence of a person
    • Qualifying partnership
• The special attribution method
  • Reporting requirements
    • Annual filers
    • Monthly and quarterly filers
    • Financial institution GST/HST annual information return
      
• Filing instructions
  • Reporting elections for investment plans
  • How do you change a return?
• Instalments by annual filers
  • Instalments for SLFIs other than investment plans
  • Instalments in the first fiscal year that you become an SLFI for persons other than investment plans
  • Instalments for investment plans that are SLFIs
  • Instalments for investment plans with a reconciliation method election or a real-time calculation method election
    • Instalment base – Stratified and non-stratified plans with a real-time calculation method election in effect
    • Instalment base – Stratified plan with a reconciliation method election in effect
    • Instalment base – Other investment plans with a reconciliation method election in effect
    • New non-stratified investment plan
    • New series of a stratified investment plan
• Instructions for filing out your interim return (GST34/GST62)
  • Calculation of your interim net tax adjustment
  • Special rules for interim net tax calculations for investment plans
  • Reporting your interim net tax adjustment
• Instructions for filling out your annual or final return (GST494)
  • Part A – Identification of the SLFI or the consolidated SLFI group of investment plans
  • Part B – Reporting period information
  • Part C – Instalment method elected for transitional year (annual filers only)
  • Part D – Calculation under the special attribution method
    • The special attribution method (SAM) formula
    • Results from the SAM and adapted SAM formula
    • How to fill out Part D
  • Part E – Calculation of the final adjustments to the net tax
  • Part F – Percentages and totals for provinces and territories
  • Part G – Schedule B
  • Part H – Certification
  • Provincial attribution percentages
    • Selected listed financial institutions
    • Investment plans
  • Attribution point
  • Prescribed amounts of tax
  • Consolidated filing for investment plans
• When can you expect your refund?
• Penalty and interest
  
• Filing nil returns
• After you file
  
• Keeping records
• Appendix A – Adapted SAM formula
  • Adapted SAM formula for stratified investment plans
  • Adapted SAM formula for non-stratified investment plans with a real-time calculation method election in effect
• Forms and publications
• Digital services
  • GST/HST electronic filing and remitting
  • Handling business taxes online
  • CRA BizApp
  • Receiving your CRA mail online
  • Authorizing the withdrawal of a pre-determined amount from your Canadian chequing account
  • Electronic payments
• For more information
  • What if you need help?
  • Direct deposit
  • Forms and publications
  • Ordering personalized remittance forms
  • Excise and GST/HST News
  • Teletypewriter (TTY) users
  • GST/HST rulings and interpretations
  • Service-related complaints
  • Formal disputes (objections and appeals)
  • Reprisal complaints
    

Is this guide for you?

This guide explains the GST/HST reporting requirements for a person that is:

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

For more information on whether a person is an SLFI, see GST/HST Memorandum 17.6.1, Definition of "Selected Listed Financial Institution".

This guide contains specific line-by-line instructions to help you fill out Form GST494, GST/HST Final Return for Selected Listed Financial Institutions. It also has instructions for filling out the interim returns using Form GST34-2, Goods and Services Tax/ Harmonized Sales Tax (GST/HST) Return for Registrants, or Form GST62, Goods and Services Tax/Harmonized Sales Tax Return (non-personalized).

Do not use this guide if you are a person that is an SLFI:

• for QST purposes
• for GST/HST purposes, but not for QST purposes, and you are a QST registrant that is an annual filer

For more information, see Form RC7294, GST/HST and QST Final Return for Selected Listed Financial Institutions, or call 1-855-666-5166.

This guide is based on the Excise Tax Act (ETA) and its regulations.

GST/HST and Quebec

In Quebec, Revenu Québec generally administers the GST/HST. If the physical location of your business is in Quebec, you have to file your returns with Revenu Québec using its forms, unless you are a person that is an SLFI for GST/HST or QST purposes or both. For more information, see the Revenu Québec publication IN-203-V, General Information Concerning the QST and the GST/HST. If you are an SLFI, go to GST/HST and QST – Financial institutions, including selected listed financial institutions.

What's new?

We list some of the major changes below.

Definitions

Defined benefits pension plan means the part of a pension plan that is in respect of benefits under the plan that are determined in accordance with a formula described in the plan, and under which the employer contributions are not determined in accordance with a formula described in the plan.

Defined contribution pension plan means the part of a pension plan that is not a defined benefits pension plan.

Distributed investment plan means an investment plan that is one of the following:

• a corporation (other than a pension entity) exempt from tax under the Income Tax Act (ITA) by reason of paragraph 149(1)(o.2) of the ITA
• an investment corporation
• a mortgage investment corporation
• a mutual fund corporation
• a mutual fund trust
• a non-resident-owned investment corporation
• a segregated fund of an insurer
• a unit trust that is not a trust described in any of subparagraphs 149(5)(a)(i) to (ix) and (xiii) of the Excise Tax Act (ETA)
• an investment limited partnership

• a trust governed by a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan or a TFSA (a tax-free savings account)
• a trust governed by an individual or family registered education savings plan

A person referred to in subparagraph 149(1)(a)(vi) of the ETA is a segregated fund of an insurer, which means a specified group of properties that is held in respect of insurance policies, all or part of the reserves for which vary in amount depending on the fair market value of the properties.

A person referred to in subparagraph 149(1)(a)(ix) of the ETA means an investment plan that is any of the following:

• a trust governed by the following (as the following terms are defined in the ITA or the Income Tax Regulations):
  • a registered pension plan (RPP)
  • a pooled registered pension plan (PRPP)
  • an employees profit sharing plan
  • a registered supplementary unemployment benefit plan
  • registered retirement savings plan (RRSP)
  • a TFSA
  • a deferred profit sharing plan (DPSP)
  • a registered education savings plan (RESP)
  • a registered disability savings plan (RDSP)
  • a registered retirement income fund (RRIF)
  • an employee benefit plan
  • an employee trust
  • a mutual fund trust
  • a unit trust
  • a retirement compensation arrangement (RCA)
• an investment corporation, as defined in the ITA
• a mortgage investment corporation, as defined in the ITA
• a mutual fund corporation, as defined in the ITA
• a non-resident owned investment corporation, as defined in the ITA
• a corporation exempt from tax under the ITA by reason of paragraph 149(1)(o.1) or (o.2) of that Act
• an investment limited partnership, as defined in the ETA
• a prescribed person, or a person of a prescribed class (An employee life and health trust as defined in subsection 248(1) of the ITA is a prescribed person.)

Investment plan manager means:

• for a pension entity of an RPP, the administrator (as defined in subsection 147.1(1) of the ITA) of the pension plan
• for a pension entity of a PRPP, the PRPP administrator of the pension plan
  
• for any other type of investment plan, the person that has ultimate responsibility for the management and administration of the assets and liabilities of the investment plan

Non-participating province means a province or territory that is not a participating province or any other area in Canada that is outside the participating provinces.

Non-stratified investment plan means a distributed investment plan whose units are not issued in two or more series.

Participating province means a province that has harmonized its provincial sales tax with the GST to implement the harmonized sales tax (HST). Participating provinces include New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, but do not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities, as defined in subsection 123(1) of the ETA, are carried on in that area.

Pension entity of a pension plan means a person in respect of the pension plan that is one of the following:

• (a) a trust governed by the pension plan
• (b) a corporation referred to in paragraph (b) of the definition of "pension plan"
• (c) a prescribed person (at this time there is no prescribed persons)

Pension plan means any of the following:

• (a) an RPP or a PRPP that governs a trust
• (b) an RPP or a PRPP for which a corporation:
  • (i) is incorporated and operated either:
    • (A) solely for the administration of the plan
    • (B) for the administration of the plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement (as defined in subsection 248(1) of the ITA), where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the plan
  • (ii) for an RPP, is accepted by the Minister of National Revenue, under subparagraph 149(1)(o.1)(ii) of the ITA, as a funding medium for the registration of the plan
  • (iii) for a PRPP, is a corporation:
    • (A) that is described in paragraph 149(1)(o.2) of the ITA
    • (B) all of the shares, and rights to acquire shares, of the capital stock of which are owned, at all times since the date on which it was incorporated, by the plan
• (c) an RPP or a PRPP for which a person is prescribed for the purposes of the "pension entity" definition
  

Plan member of an investment plan that is a private investment plan or a pension entity of a pension plan means an individual who has a right, either immediate or in the future and either absolute or contingent, to receive benefits under:

• (a) the investment plan if the investment plan is an employee life and health trust
• (b) the pension plan if the investment plan is a pension entity of a pension plan
• (c) the deferred profit sharing plan, the employee benefit plan, the employee trust, the employees profit sharing plan, the registered education saving plan, the registered supplementary unemployment benefit plan or the retirement compensation arrangement, as the case may be, that governs the investment plan

Private investment plan means an investment plan that is:

• a trust governed by:
  • a deferred profit sharing plan
  • an employee benefit plan
  • an employee trust
  • an employees profit sharing plan
  • a registered education savings plan (other than an individual or family registered education savings plan)
  • a registered supplementary unemployment benefit plan
  • a retirement compensation arrangement
• an employee life and health trust

Series means

• for a trust, a class of units of the trust
• for a corporation:
  • a class of the capital stock of the corporation that has not been issued in one or more series
  • a series of a class of the capital stock of the corporation that has been issued in one or more series
• for a partnership, a class of units of the partnership

Stratified investment plan means a distributed investment plan whose units are issued in two or more series.

Subscriber under a registered education savings plan has the same meaning as in subsection 146.1(1) of the ITA and at any time means:

• (a) each individual or the public primary caregiver with whom the promoter of the plan enters into the plan
  • (a.1) another individual or another public primary caregiver who has before that time, under a written agreement, acquired a public primary caregiver's rights as a subscriber under the plan
• an individual who has before that time acquired a subscriber's rights under the plan pursuant to a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the individual and a subscriber under the plan in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership
• after the death of an individual described in any of paragraphs (a) to (b), any other person (including the estate of the deceased individual) who acquires the individual's rights as a subscriber under the plan or who makes contributions into the plan in respect of a beneficiary

However, subscriber does not include an individual or a public primary caregiver whose rights as a subscriber under the plan had, before that time, been acquired by an individual or public primary caregiver in the circumstances described in paragraph (a.1) or (b).

Unit means:

• for a trust, a unit of the trust
• for a series of a trust, a unit of the trust of that series
• for a corporation, a share of the capital stock of the corporation
• for a series of a corporation, a share of the capital stock of the corporation of that series
• for a partnership, an interest of a person in the partnership
• for a series of a partnership, a unit of the partnership of that series
• for a segregated fund of an insurer, an interest of a person, other than the insurer, in the segregated fund

An overview

If you are a supplier of financial services (such as a selected listed financial institution (SLFI) as defined below), you cannot claim input tax credits (ITCs) for the GST/HST paid or payable on goods or services bought for use in providing exempt financial services.

There are a number of special rules for SLFIs. For example, when you calculate and report your net tax as an SLFI, you are required to make an adjustment to your net tax calculation by using the special attribution method (SAM) formula in subsection 225.2(2) of the Excise Tax Act (ETA).

You must use the SAM formula to calculate your tax liability for the provincial part of the HST for each participating provinces. You have to make this net tax adjustment for each reporting period in which you are an SLFI.

A listed financial institution

For GST/HST purposes, you are a listed financial institution throughout your tax year if at any time in the particular tax year you are included in any one of the categories listed in subparagraphs 149(1)(a)(i) through (xi) of the ETA.

For example, a listed financial institution includes a person that is:

• a bank
• a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee
  
• a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money
• a credit union
• an insurer
• a segregated fund of an insurer
• a person whose principal business is the lending of money or the purchasing of debt securities or a combination of these activities
• an investment plan
• a tax discounter
• a corporation that is deemed to be a financial institution under section 151 because it has an election under section 150 in effect to have certain taxable supplies deemed to be supplies of financial services
  

For more information on listed financial institutions, see GST/HST Memoranda 17.6, Definition of "Listed Financial Institution".

A selected listed financial institution

For GST/HST purposes, you are considered to be an SLFI throughout a reporting period in a fiscal year that ends in your tax year if you satisfy the following two conditions:

• You are a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) of the ETA at any time in your tax year.
• You are a prescribed financial institution throughout the reporting period.

A prescribed financial institution

Under section 9 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations (SLFI Regulations), a financial institution is a prescribed financial institution throughout a reporting period in a particular fiscal year that ends in its tax year if the financial institution meets either of the following conditions:

• It has, at any time in the tax year, a permanent establishment in a participating province and has, at any time in the tax year, a permanent establishment in any other province.
• It is a qualifying partnership during the tax year.

Under sections 10 to 13 and section 15 of the SLFI Regulations, certain investment plans are excluded from being a prescribed financial institution when certain conditions are met.

An investment plan that is a qualifying small investment plan, but not an SLFI, may be eligible to make an election under section 14 of the SLFI Regulations to be a prescribed financial institution and as a result be considered to be an SLFI.

For more information on how to determine wheter or not you are an SLFI, see GST/HST Memorandum 17.6.1, Definition of "Selected Listed Financial Institution".

Permanent establishment

For the purpose of determining whether or not a person is an SLFI and for purposes of the SLFI Regulations, the term permanent establishment (PE) means any PE that the person is deemed to have under section 3 of the SLFI Regulations and:

• (a) for a corporation that is not an investment plan, means a PE as determined under subsection 400(2) of the Income Tax Regulations
• (b) for an individual or trust that is not an investment plan, means a PE as determined under subsection 2600(2) of the Income Tax Regulations
• (c) for a partnership that is not an investment plan:
  • (i) if all the members of the partnership are individuals or trusts, means a PE that would be a PE of the partnership under subsection 2600(2) of the Income Tax Regulations if the partnership were an individual
  • (ii) if subparagraph (i) does not apply, means a PE that would be a PE of the partnership under subsection 400(2) of the Income Tax Regulations if the partnership were a corporation.

Under section 3 of the SLFI Regulations, certain types of financial institutions are deemed to have a PE in a province as indicated below:

• (a) If a financial institution is a bank or credit union, and at any time in its tax year, the financial institution maintains a deposit or other similar account that is in the name of a person resident in a province or a loan that was made by the financial institution is outstanding and is either secured by land situated in a province or, if not secured by land, is owing by a person resident in a province, the following rules apply:
  • (i) The financial institution is deemed to have a PE in the province throughout the tax year.
  • (ii) The following loans made by the financial institution and deposit and other similar accounts maintained by the financial institution are deemed to be loans and deposits of the PE referred to in subparagraph (i) above and not of any other PE of the financial institution.
    • (A) Outstanding loans secured by land situated in the province.
    • (B) Outstanding loans, not secured by land, owing by persons resident in the province.
    • (C) Deposit and other similar accounts in the name of a person resident in the province.
• (b) If a financial institution is an insurer that, at any time in its tax year, is insuring a risk in respect of property ordinarily situated in a province or in respect of a person resident in a province, the financial institution is deemed to have a PE in the province throughout the tax year.
• (c) If the financial institution is a trust and loan corporation, a trust corporation or a loan corporation and if, at any time in its tax year, it conducts business (other than business in respect of loans) in a province or a loan that was made by the financial institution is outstanding and is either secured by land situated in a province or, if not secured by land, is owing by a person resident in a province, the financial institution is deemed to have a PE in the province throughout the tax year.
• (d) If a financial institution is a segregated fund of an insurer, the financial institution is deemed to have a PE in a province throughout its tax year if, at any time in the tax year, any of the following conditions apply:
  • The insurer is qualified, under the laws of Canada or a province, to sell units of the financial institution in the province
  • A person resident in the province holds one or more units of the financial institution.
• (e) If a financial institution is a distributed investment plan (other than a segregated fund of an insurer), the financial institution is deemed to have a PE in a province throughout its tax year if, at any time in the tax year, any of the following conditions apply:
  • The financial institution is qualified under the laws of Canada or a province, to sell or distribute units of the financial institution in the province.
  • A person resident in the province holds one or more units of the financial institution.
• (f) If a financial institution is a private investment plan or a pension entity of a pension plan and, at any time in its tax year, a plan member of the financial institution is resident in a province, the financial institution is deemed to have a PE in the province throughout the tax year.

For the purposes of the SLFI Regulations, a financial institution has a PE in a province throughout its tax year if the financial institution has a PE in the province at any time in that tax year.

Province of residence of a person

For the purpose of determining where a financial institution has a PE in a particular province, it may be necessary to determine whether a particular person is resident in a particular province.

For this purpose and for other purposes of the SLFI Regulations, a person resident in Canada is resident in the province:

• (a) where the person's principal mailing address in Canada is located, if the person is an individual
• (b) where the person's principal business in Canada is located, if the person is a corporation or a partnership
• (c) where the principal mailing address in Canada of the annuitant of the RRSP or RRIF of the subscriber of the RESP or the holder of the RDSP or the TFSA is located, if the person is a trust governed by an RRSP, RRIF, RESP, RDSP, or a TFSA
• (d) where the trustee's principal business in Canada is located or, if the trustee is not carrying on a business, where the trustee's principal mailing address in Canada is located, if the person is a trust (other than a trust described in paragraph (c) above)
• (e) where the person's principal business in Canada is located or if the person is not carrying on a business, where the person's principal mailing address in Canada is located, in any other case

Qualifying partnership

For the purposes of the SLFI Regulations, a partnership that is not an investment plan is a qualifying partnership during its tax year if, at any time in the tax year, the partnership has both of the following:

• (a) A member that has, at any time in its tax year in which the tax year of the partnership ends, a PE in a particular participating province through which a business of the partnership is carried on or that is deemed under section 3 of the SLFI Regulations to be a PE of the member.
• (b) A member (including a member referred to in paragraph (a) above) that has, at any time in its tax year in which the tax year of the partnership ends, a PE in a province other than the particular participating province through which a business of the partnership is carried on or that is deemed under section 3 of the SLFI Regulations to be a PE of the member.

The special attribution method

The special attribution method (SAM) is used to make an adjustment, determined by a formula (see The special attribution method (SAM) formula), to your net tax for the provincial part of the HST.

As a result, there is generally no requirement for you to

• track and allocate the extent of consumption or use of each property or service acquired in the participating provinces, since an SLFI is generally not able to claim input tax credits (ITCs) related to the applicable provincial part of the HST (8% or 10%, depending on the participating province)
• self-assess and account for tax on inputs acquired in a non participating province for consumption, use, or supply in a participating province. Exceptions to this rule are found in subsection 218.1(2) and section 220.04 of the ETA

Reporting requirements

An SLFI has unique reporting and remitting requirements. A person that uses a fiscal year as their reporting period is referred to as an annual filer, a person that uses a fiscal month as their reporting period is referred to as a monthly filer and a person that uses a fiscal quarter as their reporting period is referred to as a quarterly filer. The filing methods are different for quarterly and monthly filers than they are for annual filers. These methods are explained in the next section.

Annual filers

You must file Form GST494, GST/HST Final Return for Selected Listed Financial Institutions if you are an annual filer and a GST/HST registrant, but not a QST registrant. File your GST494 return within six months of your fiscal year-end. An SLFI investment plan's fiscal year for GST/HST purposes is generally a calendar year.

In addition to Form GST494, 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 calendar month for which you have any QST to report.

Monthly and quarterly filers

If you are a monthly or quarterly filer and a GST/HST registrant, but not a QST registrant, you must file Form GST34-2, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return for Registrants (or its electronic equivalent), as your interim return for each reporting period. Also, 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 calendar month for which you have any QST to report.

If you are a monthly or quarterly filer and you are a GST/HST and QST registrant, you must file Form RC7200, Goods and Services Tax/Harmonized Sales Tax (GST/HST) and Quebec Sales Tax (QST) Return for Selected Listed Financial Institutions (or its electronic equivalent), as your interim return for each reporting period.

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), as your interim return for each calendar month if you have no QST to report in the particular month. However, for each calendar month for which you have QST to report, you must file Form RC7262 as your interim return for the calendar month.

You have to file your interim return within one month after the end of your reporting period and make an interim net tax payment or claim an interim net tax refund for that period.

As a monthly or quarterly filer, you are also required to file final returns for GST/HST purposes for each of your reporting periods by filing Form GST494 within six months after your fiscal year-end.

A listed financial institution can revoke a previously made reporting period election to be a monthly or quarterly filer, and revert to being an annual filer effective on the first day of its fiscal year by filing Form GST20-1, Notice of Revocation of an Election for GST/HST Reporting Period by a Listed Financial Institution no later than the day on which the revocation is to become effective.

Financial institution GST/HST annual information return

If you are a GST/HST registrant, you may be a reporting institution and required to file Form GST111, Financial Institution GST/HST Annual Information Return within six months after the end of your fiscal year. For more information, see Guide RC4419, Financial Institution GST/HST Annual Information Return.

Filing instructions

SLFIs that are GST/HST registrants can file their GST-34-2 interim GST/HST returns electronically. SLFIs that are GST/HST and QST registrants can file their RC7200 interim GST/HST and QST returns electronically. However, non-personalized interim returns (Form GST62 and Form RC7262) and final returns (Form GST494) filed by SLFIs cannot be filed electronically.

If you are not filing your returns electronically, mail them to:

Prince Edward Island Tax Centre
275 Pope Road
Summerside PE C1N 6A2

For more information on electronic filing options, go to Complete and file a return – File the return or see Guide RC4022, General Information for GST/HST Registrants.

If you file your interim GST34-2 or RC7200 return electronically, you will receive Form RC158, GST/HST NETFILE/TELEFILE Remittance Voucher with your GST/HST return for registrants. Use this voucher to pay the balance calculated after you have filled out your final GST/HST return.

You can also make a remittance at any participating financial institution in Canada, unless you are offsetting an amount owing by a rebate or refund. See Line 111 – GST/HST rebates for information on the available rebates.

If your remittance is $50,000 or more, you have to make the remittance at a financial institution in Canada.

Use Form RC159, Remittance Voucher – Amount Owing, to pay amounts owing after assessment or reassessment of your return.

If you need more vouchers, see Ordering personalized remittance forms.

Reporting elections for investment plans

Reporting entity election

An investment plan that is an SLFI and its investment plan manager can elect to have the manager file the investment plan's GST/HST returns (such as Form GST494 ). For more information, see Form RC4601, GST/HST Reporting Entity Election for a Selected Listed Financial Institution and Notice of Revocation.

Tax adjustment transfer election

An investment plan that is an SLFI and its investment plan manager may elect to transfer all or some of the investment plan's adjustment to net tax calculated using the SAM formula to the manager. The amount that is transferred to and reported by the investment plan manager depends on whether a reporting entity election is also in effect. For more information, see Form RC4603,GST/HST Tax Adjustment Transfer Election for a Selected Listed Financial Institution and Notice of Revocation.

Consolidated filing election

An investment plan manager and two or more investment plans that are SLFIs can make a consolidated filing election for GST/HST purposes to have the investment plan manager file single consolidated GST/HST returns on behalf of the investment plans. For more information, see Form RC4604, GST/HST Consolidated Filing Election for a Selected Listed Financial Institution and Notice of Revocation. To make this election, each investment plan must have a reporting entity election in effect with the investment plan manager. The investment plan manager must request a group GST/HST registration number for all the investment plans making a consolidated filing election. For more information, see Form RC4602, Request for a Group GST/HST Registrant Number for Selected Listed Financial Institution with Consolidated Filing.

An investment plan manager that has already made a consolidated filing election with two or more investment plans that are SLFIs can jointly elect with other investment plans that are SLFIs to include the other investment plans in the particular consolidated filing election. For more information, see Form RC4604-1, Election for a Selected Listed Financial Institution to Join a GST/HST Consolidated Filing Election. The manager or each of the other investment plans would make the request to add a particular SLFI investment plan to the existing GST/HST group registration. For more information, see Form RC4602-1, Request to be Added to a Group GST/HST Registration for Selected Listed Financial Institution with Consolidated Filing.

An investment plan can elect to withdraw from its existing consolidated filing election. For more information, see Form RC4604-2, Election for a Selected Listed Financial Institution to Withdraw From a GST/HST Consolidated Filing Election.

For more information, also see GST/HST Notice 288, Consolidated Filing for Investment Plans that Are Selected Listed Financial Institutions.

How do you change a return?

If you need to change a GST34-2, GST62, RC7200, or RC7262 return you have sent us, do not file another return. If you forgot to include an amount in your ITCs, include the omitted amount on your next return, in your line 108 calculation if you are filing electronically or on line 106 if you are filing a paper GST/HST return. In most cases, you have up to two years to claim your ITCs.

If you need to increase the amount of the GST/HST charged or collected, or you have incorrectly reported recaptured ITCs, you can adjust your return at My Business Account or Represent a Client.

You can also send a letter to your tax centre indicating your GST/HST business number, the GST/HST reporting period to be amended, and the corrected amounts per line number on your GST/HST return. Make sure the letter is signed by the owner, or an authorized representative for whom we have the correct level of authorization, and includes the name and telephone number of a person we can contact if needed.

If you need to amend or revise the information reported on your original paper GST494 return, you must send us a new paper GST494 return and write the word "AMENDED" at the top of the form. The amended GST494 return should contain all the correct information that was reported on the original GST494 return as well as the amended or revised information or amounts. The amended GST494 return must be sent to the Prince Edward Island Tax Centre.

Instalments by annual filers

If you are an annual filer, you may have to pay four equal instalments each year. These quarterly instalments are due within one month after the end of each of your fiscal quarters. You can use Form RC160, Interim Payments Remittance Voucher to make these payments.

If you make instalment payments, we will send you a Statement of Interim Payments annually to:

• confirm we received your payment
• provide your instalment credit balances by period
• show transfers in and out of your instalment account
• show how we applied your instalment credits to assessments

We will also send four copies of Form RC160 to make your next four instalment payments.

To check your up-to-the-minute account information, or to request additional remittance vouchers, go to My Business Account.

If you underpay your instalments, you will have to pay interest. Interest will be charged on an overdue amount equal to the basic rate plus 4%.

The basic rate is based on the average rate charged of 90-day Treasury bills sold during the first month of the previous quarter, ajusted quarterly, and rounded up to the nearest whole percentage.

You can calculate your instalment payments and view their due dates by using the Instalment payment calculator service available in My Business Account. Your representative can access this service through Represent a Client.

The GST494 return that you file at the end of the year will reconcile your instalments with the amount of net tax you actually owe. Include any remittance owing to balance your instalments with the total net tax for your reporting period.

Instalments for SLFIs other than investment plans

Your quarterly instalments are equal to 1/4 of your instalment base that is calculated using the formula in subsection 237(2) of the ETA.

Generally, a registrant's instalment base for a particular reporting period of the registrant is the lesser of:

• the net tax for the reporting period
• the net tax for all the reporting periods ending in the immediately preceding 12-month period multiplied by 365 and divided by the number of days in those reporting periods

• (a) an amount equal to:

– (i) in the case of a reporting period determined under subsection 248(3) of the ETA, where a person ceases to have reporting periods that are fiscal years, the amount determined by the formula:

A × 365/B

where:

A is the net tax for the particular reporting period

B is the number of days in the particular reporting period

– (ii) in any other case, the net tax for the particular reporting period

• (b) the amount determined by the formula:

C × 365/D

where:

C is the total of all amounts, each of which is the net tax for a reporting period of the registrant ending in the 12-month period immediately preceding the particular reporting period

D is the number of days in the period commencing on the first day of the first of those preceding reporting periods and ending on the last day of the last of those preceding reporting periods

Instalments in the first fiscal year that you become an SLFI for persons other than investment plans

If you are not an investment plan and you become an SLFI during a reporting period which is a fiscal year or a period determined under subsection 248(3) of the ETA, your quarterly instalment payments for that fiscal year are calculated based on subsection 237(5) of the ETA.

The instalment for the first fiscal quarter in the reporting period is 1/4 of the amount determined under subsection 237(2) of the ETA discussed above.

For each of the remaining fiscal quarters in the fiscal year, your required instalment is equal to the lesser of 1/4 of the amount determined under paragraph 237(2)(a) of the ETA and the amount determined by the formula:

A + B

where:

A is 1/4 of your instalment base for the reporting period determined under paragrapg 237(2)(b) of the ETA as if you were not an SLFI and tax was not imposed under any of subsection 165(2), section 212.1, section 218.1, and Division IV.1 of the ETA

B is the total of all amounts, each of which is determined for a participating province, by the formula

C x D where:

C is the amount determined for A (above)

D is your provincial attribution percentage for the participating province for the preceding fiscal quarters determined in accordance with the SLFI Regulations

Instalments for investment plans that are SLFIs

Section 57 of the SLFI Regulations provides that for purposes of section 237 of the ETA as adapted by the SLFI Regulations, if a particular fiscal year is the first fiscal year of an investment plan that is an SLFI, the investment plan is deemed to have another fiscal year that immediately precedes its tax year in which the particular fiscal year ends and the other fiscal year is deemed to end in the other tax year.

If you are an investment plan and you have not made a reconciliation method election or a real-time calculation method election for the fiscal year, you use the general rule for calculating your quarterly instalments, including the first year you become an SLFI, which are equal to 1/4 of your instalment base calculated using the formula in subsection 237(2) of the ETA, described above.

Instalments for investment plans with a reconciliation method election or a real-time calculation method election

There are special rules for calculating instalments for certain investment plans that have a reconciliation method election or a real-time calculation method election in effect. This section explains the rules for eligible SLFIs that have made such an election using Form RC4609, Election or Revocation of Election to Use the Real-Time Calculation Method or the Reconciliation Method.

Instalment base – Stratified and non-stratified plans with a real-time calculation method election in effect

If you are a stratified or non-stratified investment plan and a real-time calculation method election under section 49, 61 or 64 of the SLFI Regulations is in effect throughout your fiscal year (in the case of the stratified investment plan, the real-time calculation method election must be in effect in respect of every series of the investment plan), your instalment payment is equal to the amount that would be your net tax for the fiscal quarter if the fiscal quarter were your reporting period.

Instalment base – Stratified plan with a reconciliation method election in effect

If you are a stratified investment plan with a reconciliation method election under section 50 of the SLFI Regulations in effect throughout the fiscal year and a real-time calculation method election is not in effect in respect of every series of the investment plan, the following rules apply:

• The description of A in the formula in subparagraph 237(2)(a)(i) of the ETA described above is adapted for the reporting period so that A is the amount that would be the net tax for the particular reporting period if the description of A₆ of the adapted SAM formula in paragraph 48(1)(b) of the SLFI Regulations were your percentage for the series, for the participating province and for your preceding tax year, determined in accordance with the SLFI Regulations.
• Subparagraph 237(2)(a)(ii) of the ETA described above is adapted for the reporting period so that in any other case, the amount that would be the net tax for the particular reporting period if the description of A₆ of the adapted SAM formula in paragraph 48(1)(b) of the SLFI Regulations were your percentage for the series, for the participating province and for the preceding tax year in accordance with the SLFI Regulations.

Instalment base – Other investment plans with a reconciliation method election in effect

If you are an investment plan (other than a stratified investment plan) with a reconciliation method election in effect throughout the fiscal year, the following rules apply:

• The description of A in the formula in subparagraph 237(2)(a)(i) of the ETA described above is adapted for the reporting period so that A is the amount that would be the net tax for the particular reporting period if the description of C in the SAM formula in subsection 225.2(2) of the ETA were your percentage for the participating province and for the preceding tax year in accordance with the SLFI Regulations.
• Subparagraph 237(2)(a)(ii) of the ETA described above is adaped for the reporting period so that in any other case, the amount that would be the net tax of the person for the particular reporting period if the description of C in the SAM formula in subsection 225.2(2) of the ETA were your percentage for the participating province and for the preceding tax year in accordance with the SLFI Regulations.

New non-stratified investment plan

Under paragraph 59(c) of the SLFI Regulations, if immediately before the issuance, distribution or offering for sale of units of a new non-stratified investment plan that is an SLFI, no units are issued or outstanding, and if no real-time calculation method election under section 49 or 61, or no election under section 60 of the SLFI Regulations is in effect for the fiscal year, for each fiscal quarter that precedes the fiscal quarter that includes the "reconciliation day", the instalment amount of the new investment plan is 1/4 of the amount that would be the net tax for a reporting period if the description of Element C of the SAM formula in subsection 225.2(2) of the ETA was an estimate of the financial institution's provincial attribution percentage for the participating province and for the preceding tax year of the financial institution, as determined by the financial institution.

New series of a stratified investment plan

Under paragraph 62(c) of the SLFI Regulations, if immediately before the issuance, distribution or offering for sale of units of a new series of a stratified investment plan that is an SLFI, no units of the series are issued or outstanding, and if no real-time calculation method election under section 49 or 64, or no election under section 63 of the SLFI Regulations is in effect in respect of the series and for the fiscal year, for each fiscal quarter that precedes the fiscal quarter that includes the “reconciliation day”, the instalment amount of the investment plan is 1/4 of the amount that would be the net tax for the reporting period if the description of Element A₆ of the adapted SAM formula in subsection 48(1) of the SLFI Regulations was, in the case of a new series of the financial institution in respect of which this paragraph applies, an estimate of the financial institution’s provincial attribution percentage for the series, for the participating province and for the preceding tax year of the financial institution, as determined by the financial institution, and, in the case of any other series of the financial institution, was the financial institution’s provincial attribution percentage for the series, for the participating province and for the preceding tax year of the financial institution, as determined in accordance with the SLFI Regulations.

The term “reconciliation day” is defined for purposes of the above two paragraphs as the day that is the earliest of:

• the day that is 30 days after the attribution point in respect of the investment plan or series, respectively, for the preceding tax year
• the day preceding the day on which a plan merger of the investment plan and one or more other investment plans first occurs

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

If you are a monthly or quarterly filer, you have to file an interim return for each reporting period in your fiscal year to report your interim net tax. See Monthly and quarterly filers to determine which form to use as your interim return.

If you previously filed a GST/HST return electronically, or if you are a new filer, we will send you Form GST34-3, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Electronic Filing Instructions. This is a package that includes your access code, remittance vouchers, and filing instructions.

If you previously filed a GST/HST return on paper, we will send you Form GST34-2, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return for Registrants, which includes personalized pre-printed information about your account. You can make an online request to stop receiving the printed GST/HST returns by selecting “Enquiries service” and “Change mailing instructions” at My Business Account or through Represent a Client.

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

You still have to file your return by the due date even if you did not receive a personalized return (Form GST34-2) or if you lose that return.

You can view the due dates of expected returns at My Business Account or Represent a Client.

If you do not receive a personalized return, you can use Form GST62, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (non-personalized). Form GST62 contains all of the same information as Form GST34-2, except you have to enter your personal data. Form GST62 is also not available on our website. You can order it online at Forms and publications.

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

Where required, the amounts you reported on your interim returns will be reconciled at the end of your fiscal year when you file your final returns for each reporting period using Form GST494, GST/HST Final Return for Selected Listed Financial Institutions.

For more information, see Part D – Calculation under the special attribution method.

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).

If you are not an investment plan and you become an SLFI during a reporting period, your interim net tax is the amount that would be your net tax for your reporting period if the provincial attribution percentage that you will use to calculate the interim net tax adjustment for a particular participating province is your provincial attribution percentage for the participating province for the immediately preceding reporting period determined in accordance with the SLFI Regulations.

Special rules for interim net tax calculation for investment plans

• (a) Under subsection 48(8) of the SLFI Regulations, if you are a stratified or non-stratified investment plan that does not have a reconciliation method election in effect throughout a fiscal year but does have a real-time calculation method election in effect for a fiscal year of the non-stratified plan or in respect of every series of the stratified investment plan for the fiscal year, your interim net tax is your net tax for the reporting period.
• (b) Under subsection 48(9) of the SLFI Regulations, if you are a stratified investment plan and neither paragraph (a) above nor paragraph (d) applies, your interim net tax for the reporting period for each series is determined as if your provincial attribution percentage is your provincial attribution percentage for the series, for the participating province for the preceding tax year, determined in accordance with the SLFI Regulations.
• (c) Under subsection 48(10) of the SLFI Regulations, if you are an investment plan and neither paragraphs (a) or (b) above applies nor paragraph (e) applies in respect of a reporting period, your interim net tax for the reporting period is determined as if Element C in the SAM formula in subsection 225.2(2) of the ETA is your provincial attribution percentage for the participating province for the preceding tax year, determined in accordance with the SLFI Regulations.
• (d) Under paragraph 62(b) of the SLFI Regulations, if you are a stratified investment plan with a new series and immediately before the issuance, distribution or offering for sale, no units of the series are issued and outstanding and if no real-time calculation method election under sections 49 or 64, or no election under section 63 is in effect for that new series, for each reporting period that precedes the reporting period that includes the reconciliation day, your provincial attribution percentage for the new series is an estimate of your percentage for the series for the preceding tax year, and in the case of any other series, your provincial attribution percentage is your percentage for the series for the participating province for the preceding tax year determined in accordance with the SLFI Regulations.
• (e) Under paragraph 59(b) of the SLFI Regulations, if you are a new non-stratified investment plan and immediately before the issuance, distribution or offering for sale, no units of the plan are issued and outstanding and no real-time calculation method election under sections 49 or 61, or no election under section 60 is in effect, for each reporting period that precedes the reporting period that includes the reconciliation day, your provincial attribution percentage is an estimate of your percentage for the participating province for the preceding tax year.

Reporting your interim net tax adjustment

To help you calculate the interim net tax adjustment for each reporting period, you may use the format in lines 2000 through 4800 in Part D – Calculation under the special attribution method of the GST494 return as a template.

You will find detailed instructions on how to fill out your GST34-2 return in Guide RC4022, General Information for GST/HST Registrants. However, the following instructions on reporting your interim net tax adjustment calculated using the SAM formula are not provided in that guide.

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).

• When you fill out line 106 – “Input tax credits (ITCs)” as an SLFI (or include the amount in your line 108 calculation if you are filing electronically), you generally cannot claim ITCs for the provincial part of the HST.
• Fill out line 205 – “GST/HST due on purchase of real property or purchases of emission allowances” if you are a GST/HST registrant and you purchased taxable real property (other than an individual who purchased a residential complex) or taxable emission allowances in Canada for use or supply primarily (more than 50%) in the course of your commercial activities to account for the tax payable on the purchase. Enter the amount of the GST/HST due on the purchases of the real property and purchases of emission allowances on this line. Also, if you are registered and you purchased real property from a non-resident, or from a person who is a resident only because of activities they carry on through a permanent establishment in Canada, you have to self-assess and account for the tax payable on the purchase on line 205.
• Fill out Line 405 – "Other GST/HST to be self-assessed," if you are a GST/HST registrant and have to self-assess and account for the following amount of tax:
  • the GST and the federal part of the HST payable under Division IV of the ETA
  • the provincial part of the HST payable under Division IV and IV.1 of the ETA that is a prescribed amount of tax for purposes of paragraph (a) of Element F in the SAM formula in subsection 225.2(2) of the ETA (see Prescribed amounts of tax)
  • the provincial part of the HST payable under Division IV and IV.1 of the ETA in respect of property or a service acquired (or brought into a participating province) otherwise than for consumption, use or supply in the course of an endeavour of the person

If you are a non-registrant, you would not include any amount on line 405 of your interim return. Instead, you would use either Form GST489, Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST) or Form GST59, GST/HST Return for Imported Taxable Supplies, Qualifying Consideration and Internal and External Charges to account for the amounts of tax described above.

Instructions for filling out your annual or final return (GST494)

Monthly and quarterly filers are required to fill out a final return for each of their reporting periods using Form GST494, GST/HST Final Return for Selected Listed Financial Institutions. Annual filers are required to fill out Form GST494 as their annual return.

You have to fill out Form GST494 within six months after your fiscal year end. Form GST494 cannot be filed electronically.

Part A – Identification of the SLFI or the consolidated SLFI group of investment plans

You have to fill out the identification fields on the first page. Enter your complete legal name or the consolidated SLFI group filing name, your business number, and mailing address.

Part B – Reporting period information

Enter the fiscal year of your business (year, month, and day), and the reporting period ( monthly, quarterly, or annual) in the appropriate boxes.

Fill out Part B even if you are not a GST/HST registrant. In this case, you are considered to be a monthly filer.

Part C – Instalment method elected for transitional year (annual filers only)

This information is not currently required for fiscal years that begin after June 30, 2010.

Part D – Calculation under the special attribution method

The special attribution method (SAM) formula

When you determine your net tax for a reporting period (by filling out Parts D and E of the GST494 return), you have to use the SAM formula in subsection 225.2(2) of the ETA to make an adjustment to the net tax for each of your reporting periods so that the proper amount of the provincial part of the HST is included in your net tax liability for your current fiscal year. The following is a list of the participating provinces and the applicable provincial rate: 8% for Ontario and 10% for New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.

Subsection 225.2(3) of the ETA provides that the following amounts should not be included in the SAM formula in subsection 225.2(2) in determining an SLFI’s adjustment to its net tax:

• Tax the SLFI is deemed to have paid under any of subsections 171(1), 171.1(2), 206(2) and (3) and 208(2) and (3) of the ETA is excluded from Element A and Element F of the SAM formula.
• Input tax credits (ITCs) in respect of tax referred to in the first bullet above and ITCs that the SLFI is eligible to claim under subsection 193(1) or (2) of the ETA are excluded from Element B of the SAM formula.
• Tax paid or payable by the SLFI in respect of property or services acquired, imported or brought into a participating province otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1) of the ETA) of the SLFI is excluded from the SAM formula.
• The SAM formula without adaptation used by all SLFIs (other than all stratified investment plans and non-stratified investment plans with a real-time calculation method election in effect) to calculate an SLFI’s net tax adjustment related to its liability for the provincial part of the HST for a reporting period in respect of each participating province is:

[(A - B) x C x (D / E)] - F + G

where:

Element A is the total of all of the following amounts:

• (a) all amounts of the GST plus the federal part of the HST (other than a prescribed amount of tax) under subsection 165(1) and sections 212, 218, and 218.01 of the ETA that became payable or were paid without being payable by you during the particular reporting period
• (b) all amounts equal to the GST plus the federal part of the HST under subsection 165(1) of the ETA for a supply made to you by a closely related corporation and that would have become payable by you if it were not for an election made under section 150 of the ETA (unless paragraph (c) below applies)
• (c) all amounts equal to the GST plus the federal part of the HST calculated at a rate under subsection 165(1) of the ETA on your supplier’s cost (excluding any remuneration to employees, the cost of financial services, GST and HST) of making the supply to you, where you have elected under subsection 225.2(4) of the ETA to have this paragraph (c) apply

For more information on the election under section 150 of the ETA, see Form GST27, Election or Revocation of an Election to Deem Certain Supplies to be Financial Services for GST/HST Purposes, and for more information on the election under subsection 225.2(4) of the ETA, see Form GST497, GST/HST Election or Revocation Under the Special Attribution Method for Selected Listed Financial Institutions.

Element B is generally the total of both of the following amounts:

• (a) all of your ITCs for the GST and federal part of the HST (other than ITCs for a prescribed amount of tax referred to in paragraph (a) of Element A) claimed for the current or preceding reporting periods included in your return for the particular reporting period
• (b) all amounts equal to the ITCs that you could have claimed in the reporting period if tax would have become payable during the reporting period equal to the amount included for the reporting period under either paragraph (b) or (c) of Element A in respect of the supply
  

Element C is your provincial attribution percentage for each participating province for the tax year. The attribution percentage for each participating province for a particular period is determined according to prescribed rules set out in Part 2 of the SLFI Regulations. For more information, see Provincial attribution percentages.

Element D is the tax rate for the particular participating province, which is the provincial part of the HST (8% in Ontario, and 10% in New Brunswick, Newfoundland ans Labrador, Nova Scotia, and Prince Edward Island).

Element E is the tax rate for the GST or the federal part of the HST (5%).

Element F is the total of both of the following amounts:

• (a) all amounts of tax (other than a prescribed amount of tax) under subsection 165(2) for the provincial part of the HST in respect of a supply made to you in the participating province, or under section 212.1 of the ETA that are calculated at the tax rate for the participating province that:
  • (i) became payable or were paid without being payable by you during either of the following:
    • A) the particular reporting period
    • B) any other reporting period that precedes the particular reporting period, where the particular reporting period ends within two years after your fiscal year that includes the other reporting period; and you were an SLFI throughout the other reporting period
  • (ii) you did not deduct, in determining an amount that under SAM formula is required to be added to or deducted from the net tax for any reporting period other than the particular reporting period
  • (iii) you claimed in a Division V return for the particular reporting period (for exemple, your GST34-2 return or GST494 return)
• (b) all amounts, each of which is an amount, in respect of a supply of property or a service made by a supplier to you during the particular reporting period with respect to which your election under subsection 225.2(4) of the ETA applies, equal to tax payable by the supplier under any of subsection 165(2), sections 212.1 and 218.1, and Division IV.1 of the ETA that is included in the supplier’s cost of providing the property or service to you.

Note
A "prescribed amount of tax" for the purposes of paragraph (a) of Element F is an amount described in section 40 of Part 3 – Prescribed Amounts of Tax and in paragraph 55(2)(a) of Part 5 – Investment Plans of the SLFI Regulations. For more information, see Prescribed amounts of tax.

Element G is the total of all amounts, each of which is a positive or negative "prescribed amount". Element G provides for adjustments that take into account transitional and other special transactions. A "prescribed amount" is an amount described in paragraphs 46(a) to (j) and amounts determined in paragraphs 55(2)(b) and (c), 60(b) and 63(b) and subparagraphs 59(d)(iii) and 62(d)(iii) of the SLFI Regulations.

The following is a general description of some of the amounts that are included in the calculation of prescribed amounts. This is not meant to be an exhaustive explanation of those amounts. Refer to the specific paragraph in section 46 of the SLFI Regulations for more information on a particular prescribed amount.

Paragraph 46(a) includes amounts related to adjustments, refunds and credits, such as those amounts paid or payable as or on account of tax under subsection 165(2) of the ETA that was adjusted, refunded or credited under section 232 of the ETA to the extent that the amount was included in the total for Element F of the SAM formula. As well, this paragraph includes amounts of the GST and federal part of the HST, such as a pension rebate under section 261.01 of the ETA, that were rebated to the SLFI during the reporting period, to the extent the amount was included in Element A in the SAM formula, or subparagraph (iv) of the description of G7 in paragraph 46(b) of the SLFI Regulations, for any reporting period.

Paragraph 46(b) includes amounts related to certain deemed supplies and tax adjustments related to pension plans, such as the amounts of tax deemed to have been paid by a financial institution during the reporting period under any of subsections 172.1(5) to (7.1) of the ETA, and the tax adjustment under subsection 236(1) of the ETA to reduce the amount of ITCs with respect to meal and entertainment expenses.

Paragraph 46(c) includes amounts related to determining the tax liability for the 2010 transitional year for British Columbia, Nova Scotia, and Ontario.

Paragraph 46(d) includes amounts related to the requirement for a "large business" to recapture the provincial part of the HST for certain input tax credits for British Columbia, Ontario, and Prince Edward Island. A registrant is a large business if it is any of the following:

• a bank
• a corporation licensed or otherwise authorized under the laws of Canada or of a province to carry on in Canada the business of offering to the public its services as a trustee
• a credit union
• an insurer or any other person whose principal business is providing insurance under insurance policies
• a segregated fund of an insurer
• an investment plan (as defined under subsection 149(5) of the ETA)
• a person related to any of the person listed above.
  

The Canada deposit Insurance Corporation is also a large business.

Paragraph 46(e) includes amounts related to determining the tax liability for the 2010 transitional year for New Brunswick, Nova Scotia, and Newfoundland and Labrador on certain supplies consumed or used exclusively in British Columbia or Ontario.

Paragraph 46(f) includes amounts related to determining the tax liability for the 2013 transitional year for British Columbia.

Paragraph 46(g) includes amounts related to determining the tax liability for the 2013 transitional year for Prince Edward Island.

Paragraph 46(h) includes amounts related to determining the tax liability for the 2013 transitional year for the provinces of Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and British Columbia on certain supplies used exclusively in Prince Edward Island.

Paragraph 46(i) includes amounts related to determining the tax liability for the 2016 transitional year for New Brunswick and Newfoundland and Labrador.

Paragraph 46(j) includes amounts related to determining the tax liability for the 2016 transitional year for Prince Edward Island.

In addition, if an investment plan and its investment plan manager have a tax adjustment transfer election in effect at any time in a particular reporting period of the manager and the manager is an SLFI throughout the particular reporting period, the positive or negative tax adjustment transfer amount, as calculated in section 55 of the SLFI Regulations, is a “prescribed amount” for the purpose of the manager’s Element G calculation.

For new non-stratified investment plans, amounts determined under subparagraph 59(d)(iii) and paragraph 60(b) of the SLFI Regulations are also a “prescribed amount” for purposes of the description of Element G. For new series in a stratified investment plan, amounts determined under subparagraph 62(d)(iii) and paragraph 63(b) of the SLFI Regulations are also a “prescribed amount” for purposes of the description of Element G.

For more information on calculating the SAM formula, see subsection 225.2(2) of the ETA, the applicable sections of the SLFI Regulations and GST/HST Technical Information Bulletin B-107, Investment Plans (Including Segregated Funds of an Insurer) and the HST.

Results from the SAM and adapted SAM formula

If the SAM formula calculation for the reporting period results is a positive amount, you must add the positive amount in determining your net tax for the reporting period. If the SAM formula calculation for the reporting period results is a negative amount, you may deduct the negative amount in determining your net tax for the reporting period.

You must adjust the net tax amount for each of your reporting periods by completing the following calculations.

How to fill out Part D

Monthly, quarterly, and annual filers have to fill out lines 2000 through 4800 in Part D for each reporting period in their fiscal year that ends in a tax year. A monthly filer fills out all fields M1 through M12. A quarterly filer fills out fields Q1 through Q4, while an annual filer fills out the annual fields.

Line 2000 – GST and the federal part of the HST paid or payable

Enter the total amount of GST plus the federal part of the HST (other than a prescribed amount of tax) under subsection 165(1) and sections 212, 218 and 218.01 of the ETA that became payable by you, or was paid without being payable by you in your reporting period on your purchases and expenditures. This includes amounts that registrants entered on line 405 of the interim return and amounts non registrants entered on line 402 of Form GST59, GST/HST Return for Imported Taxable Supplies, Qualifying Consideration, and Internal and External Charges. The total amount is Element A in the SAM formula and Element A₁ or A₄ in the adapted SAM formula.

Line 2100 – Input tax credits

Enter the total amount of your input tax credits (ITCs) claimed in your reporting period. Your claim for ITCs generally must not include amounts for the provincial part of the HST. This amount is Element B in the SAM formula and Element A₂ or A₅ in the adapted SAM formula.

Line 2200 – Unrecoverable GST and the federal part of the HST

Calculate the unrecoverable GST and the federal part of the HST for your reporting period by subtracting line 2100 from line 2000. Enter the result on line 2200.

Line 3080 – Attribution percentage for participating provinces with an 8% provincial rate

Enter your total attribution percentage for all participating provinces with an 8% provincial rate (13% HST rate) shown in Schedule A in Part F. This amount is Element C in the SAM formula and Element A₃ or A₆ in the adapted SAM formula for all participating provinces with an 8% provincial rate.

Line 3081 – Unrecoverable GST and the federal part of the HST attributable to participating provinces with an 8% provincial rate

Multiply the amount on line 2200 by the attribution percentage of line 3080. Enter the result on line 3081.

Line 3082 – Provincial part of the HST attributable to participating provinces with an 8% provincial rate

Determine the provincial part of the HST attributable to the participating provinces with an 8% provincial rate (13% HST rate) by multiplying the amount on line 3081 by the fraction 8/5. Enter the result on line 3082.

Line 3100 – Attribution percentage for participating provinces with a 10% provincial rate

Enter your total attribution percentage for all participating provinces with a 10% provincial rate (15% HST rate) and for unallocated amounts shown in Schedule A in Part F. This amount is Element C in the SAM formula and Element A₃ or A₆ in the adapted SAM formula for all participating provinces with a 10% provincial rate.

Line 3101 – Unrecoverable GST and the federal part of the HST attributable to participating provinces with a 10% provincial rate

Multiply the amount on line 2200 by the attribution percentage of line 3100. Enter the result on line 3101.

Line 3102 – Provincial part of the HST attributable to participating provinces with a 10% provincial rate

Determine the provincial part of the HST attributable to the participating provinces with a 10% provincial rate (15% HST rate), including unallocated amounts, by multiplying the amount on line 3101 by the fraction 10/5. Enter the result on line 3102.

Line 4000 – Total provincial part of the HST attributable to participating provinces

Add lines 3082 and 3102 to determine the total provincial part of the HST attributable to the participating provinces.

Line 4100 – Provincial part of the HST paid or payable

Enter the total amount of the provincial part of the HST (other than a prescribed amount of tax) under subsection 165(2) and section 212.1 of the ETA that became payable by you, or was paid without being payable by you on your purchases and expenditures in your reporting period, or in any other reporting period when you were an SLFI that precedes the particular reporting period, where the particular reporting period ends within two years after your fiscal year that includes the other reporting period. Any amount related to another reporting period can not have been included in any of your previous periods.

This amount is Element F in the SAM formula and Element D in the adapted SAM formula.

There are currently two provincial rates (8% and 10%).

Line 4200 – Net provincial part of the HST before miscellaneous adjustments

Calculate the net provincial part of the HST before miscellaneous adjustments by subtracting the amount on line 4100 from the amount on line 4000. Enter the result on line 4200.

Line 4300 – Total of prescribed amounts – positive

Determine the total amount of your prescribed amounts (Element G in the SAM formula and Element E in the adapted SAM formula) in your reporting period. If the total amount is positive, enter the positive amount on line 4300. If the total amount is negative, see line 4500.

Line 4400 – Total net provincial part of the HST after positive adjustments

Add the amount on line 4200 to the amount on line 4300. Enter the result on line 4400.

Line 4500 – Total of prescribed amounts – negative

If the total amount of your prescribed amounts (Element G in the SAM formula and Element E in the adapted SAM formula) in your reporting period is negative, enter the negative amount on line 4500.

Line 4600 – Total net provincial part after adjustments

To calculate your net tax adjustment for the reporting period, subtract the amount on line 4500 from line 4400. Enter the result on line 4600.

If you do not have a tax adjustment transfer election in effect for the reporting period and the result is positive, enter that amount on line 104 in Part E. If the result is negative, enter that amount on line 107 in Part E.

If you are an investment plan and have a tax adjustment transfer election in effect for a reporting period, fill out lines 4700 and 4800.

Line 4700 – Net tax adjustment transfer amount

If you are an investment plan and have a tax adjustment transfer election with your investment plan manager that is in effect for a reporting period, the tax adjustment transfer amount is reported on this line for your applicable reporting period if you are a monthly or quarterly filer, or the total amount transferred to the manager throughout the year if you are an annual filer.

Line 4800 – Balance after net tax adjustment transfer amounts transferred to manager

If you are an investment plan and have a tax adjustment transfer election in effect for the reporting period, to calculate the remaining balance, if any, of your net tax adjustment for the reporting period, subtract the amount on line 4700 from line 4600. Enter the result on line 4800. This amount will generally be zero where you have a reporting entity election and a tax adjustment transfer election in effect with your investment plan manager.

Part E – Calculation of the final adjustments to net tax

You must fill out all lines in Part E (lines 101 through 119, 135, 136, and 1300).

Line 101 – Sales and other revenue

Annual filers: Enter on line 101 the total amount of revenue from supplies of property and services, including zero-rated and exempt supplies, and other revenue from your records or your financial statements or equivalent. Do not include provincial sales tax, the GST/HST, or any amounts you reported on a previous return. Round off the amount to the nearest dollar.

Monthly or quarterly filers: Enter the amounts that you reported on line 101 of each interim return in the corresponding fields on the GST494 return.

Line 103 – GST/HST amounts collected or that became collectible

Annual filers: Enter the total of all GST/HST collected or collectible on your supplies of property and services for which you have to charge the GST/HST (including the GST/HST collected or collectible on the sale of taxable real property, if applicable, or capital property). You have to include the amount of GST/HST collected or collectible on both paid and unpaid invoices.

Monthly and quarterly filers: Enter the amounts that you reported on line 103 of each interim return in the corresponding fields on the GST494 return.

If, as a monthly or quarterly filer, you used GST/HST NETFILE to file your interim returns electronically (GST34), the amounts on line 103 are included on line 105. Enter on line 103 of your GST494 return the amounts that correspond to the line 103 amounts included on line 105 of your interim GST/HST NETFILE returns (GST34).

Line 104 – Adjustments increasing net tax

Annual filers: Fill out line 104 if you have to make adjustments to increase the amount of net tax you report for the reporting period. Enter the total of all adjustments. The following are examples of this type of adjustment:

• A positive amount shown on line 4600 or 4800 of the GST494 return.
• If you wrote off the GST/HST amount of any bad debts in a previous return, and then recovered some or all of those debts, add the amount of the GST/HST you have recovered based on the formula in subsection 231(3) of the ETA (refer to the section on bad debts recovered in Guide RC4022, General Information for GST/HST Registrants).
• If you are a qualifying employer who made an election to share a pension rebate amount and the pension entity with which you made the election issues to you information concerning an amount of the rebate that must be added back to your net tax, enter the appropriate amount. (For information on how to calculate the amount, refer to Part V of GST/HST Notice 257, The GST/HST Rebate for Pension Entities, or paragraphs 232.01(5)(d) and 232.02(4)(d) of the ETA.)

• Recaptured ITCs for the reporting period that are not included in Element G in the SAM formula and Element E in the adapted SAM formula.

Monthly and quarterly filers: Unless the next paragraph applies, enter the amounts that you reported on line 104 of each interim return in the corresponding field for the same reporting periods on the GST494 return.

If you used GST/HST NETFILE to file your interim returns electronically (GST34-3), enter on line 104 of your GST494 return the amounts that correspond to the line 104 amounts that are included on line 105 of your interim GST/HST NETFILE returns (GST34-3).

Your net tax adjustment amount calculated using the SAM formula that is reported on line 4600 or 4800 of your final return may be different than your interim net tax adjustment calculation that you reported on line 104 for your interim return, for example, if you calculated your interim net tax adjustment for your interim return using the preceding year’s provincial attribution percentage and you are required to use the provincial attribution percentage for the current year to calculate your net tax adjustment for your final return. If this is the case, the amount reported on line 104 of your final return must be adjusted to account for this difference.

Line 105 – Total GST/HST and adjustments for the period

Add lines 103 and 104. Enter the total on line 105.

Line 106 – Input tax credits (ITCs)

Generally, an SLFI is only eligible to claim an ITC for the GST and federal part of the HST payable. An SLFI is also eligible to claim an ITC for the provincial part of the HST if:

• the ITC is in respect of one of the following:
  • deemed tax under subsection 171(1), 171.1(2), 206(2), 206(3) or 208(3) of the ETA
  • an amount of tax that is prescribed for purposes of paragraph (a) of Element F of the SAM formula
• the person can claim an ITC under subsection 193(1) or (2) of the ETA
  

Annual filers: Enter on line 106 the total of all ITCs (generally GST and federal part of the HST) paid or payable on qualifying expenses for the current reporting period and any eligible unclaimed ITCs from previous periods.

Monthly and quarterly filers: Enter the amount that you reported on line 106 of each interim return in the corresponding field of the GST494 return.

If, as a monthly or quarterly filer, you used GST/HST NETFILE to file your interim returns electronically (GST34-3), the amounts on line 106 are included on line 108. Enter on line 106 of the GST494 return the amounts that correspond to the line 106 amounts included on line 108 of your interim GST/HST NETFILE returns (GST34-3).

Line 107 – Adjustments decreasing net tax

Annual filers: Fill out line 107 if you have to make adjustments to decrease the amount of net tax you report for the reporting period. Enter the total of all adjustments. The following are examples of this type of adjustment:

• a negative amount, shown on line 4600 or 4800 of the GST494 return
• amounts of GST/HST included in an accounts receivable written-off as a bad debt provided that you have already accounted for and remitted all of the tax on your taxable supplies that resulted in that bad debt
• amounts of GST/HST new housing rebates in respect of the GST or federal part of the HST and provincial new housing rebates in respect of the provincial part of the HST that you paid or credited to eligible purchasers of new housing, which are the same amounts entered on line 135 of the GST494 return
• if you are a qualifying employer that issued a tax adjustment note to a pension entity for having collected tax twice on an actual supply and on a deemed supply made in the course of the administration of a pension plan, enter the amount of the deduction allowed
• if you are a qualifying employer, include the deduction allowed in respect of an elected shared pension rebate amount.

Note
Refer to Form RC4607 GST/HST Pension Entity Rebate Application and Election, which are the same amounts entered on line 136 of the GST494 return.

Monthly and quarterly filers: Unless the next paragraph applies, enter the amounts that you reported on line 107 of each interim return in the corresponding fields for the same reporting periods on the GST494 return.

If you used GST/HST NETFILE to file your interim returns electronically (GST34 3), enter on line 107 of the GST494 return the amounts that correspond to the line 107 amounts that are included on line 108 of your interim GST/HST NETFILE returns (GST34-3) including amounts reported on line 135.

Your net tax adjustment amount calculated using the SAM formula that is reported on line 4600 or 4800 of your final return may be different than your interim net tax adjustment calculation that you reported on line 107 for your interim return, for example, if you calculated your interim net tax adjustment for your interim return using the preceding year’s provincial attribution percentage and you are required to use the provincial attribution percentage for the current year on the final return. If this is the case, the amount reported on line 107 of your final return must be adjusted to account for this difference.

Line 108 – Total ITCs and adjustments

Add lines 106 and 107. Enter the result on line 108.

Line 109 – Net GST/HST

Subtract the amount on line 108 from the amount on line 105. The difference is your net tax. Enter that amount on line 109.

Line 110 – GST/HST instalment payments

If you are an annual filer, enter on line 110 the amount of the instalment payments you have already paid for the current reporting period.

You can view your interim balance and if needed, you can transfer a payment from one interim period to another and between program accounts that have the same nine-digit business number by using the Account balance and activities service in My Business Account. Your representative can also access these services through Represent a Client.

Line 111 – GST/HST Rebates

Annual filers: Enter the total amount of the GST/HST rebates that you can use to offset your amount owing (for example, from Form GST189, General Application for Rebate of GST/HST), claimed for the reporting period. Enter the total amount of the rebate you are claiming on line 111 of the GST494 return and attach your rebate application(s) to the GST494 return.

Monthly and quarterly filers: Enter the amounts the rebates, if any, you reported on line 111 of your interim returns in the corresponding fields for line 111 of your GST494 return.

Line 122 – British Columbia transition rebate

The time period for claiming the British Columbia transition rebate has passed.

Line 112 – Total other credits

Add the amounts on lines 110 and 111 and enter that total on line 112.

Line 113A – Balance

Subtract line 112 from line 109. Enter the result on line 113A.

Line 205 – GST/HST due on purchases of real property or purchases of emission allowances

Annual filers: Fill out this line in the following situations:

• You are a GST/HST registrant and you purchased taxable real property (other than an individual who purchased a residential complex) or taxable supplies of emission allowances in Canada for use or supply primarily (more than 50%) in the course of your commercial activities.
• You purchased real property from a non-resident, or from a person who is a resident only because of activities they carry on through a permanent establishment in Canada.

You are required to self-assess and account for the tax payable on any purchase described above. Enter the total amount of GST/HST due on the acquisition of the taxable real property or taxable emission allowances.

Monthly and quarterly filers: Enter the amount you reported on line 205 of each of your interim returns in the corresponding fields (line 205) for the same reporting period on the GST494 return.

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

Fill out this line if you have to self-assess and account for the following amounts of tax:

• the GST and the federal part of the HST payable under Division IV of the ETA
• the provincial part of the HST payable under Division IV and IV.1 of the ETA that is a prescribed amount of tax for purposes of paragraph (a) of Element F in the SAM formula in subsection 225.2(2) of the ETA (see Prescribed amounts of tax)
• the provincial part of the HST payable under Divisions IV and IV.1 of the ETA in respect of property or a service acquired (or brought into a participating province) otherwise than for consumption, use or supply in the course of an endeavour of the person
  

Annual filers: Enter the total of these self-assessed amounts on line 405.

Monthly and quarterly filers: Enter the amount you reported on line 405 of each of your interim returns in the corresponding fields (line 405) for the same reporting period on the GST494 return.

In general, if you are a non-registrant, you would include on line 405 any amounts reported on line 502 of Form GST489, Return for Self- Assessment of the Provincial Part of Harmonized Sales Tax (HST) and line 405 of Form GST59, GST/HST Return for Imported Taxable Supplies, Qualifying Consideration, and Internal and External Charges.

Line 705 – British Columbia transition tax

The time period for remitting the British Columbia transition tax has passed.

Line 113B – Balance

Add the amounts on lines 113A, 205 and, 405, and enter the total on this line. This amount may be a positive or negative amount.

Line 114 – Refund claimed on GST/HST interim return

If you are a monthly or quarterly filer, enter the amounts you reported on line 114 of each of your interim returns in the corresponding fields (line 114) for the same reporting periods on the GST494 return. This amount is a positive amount. If no refund is claimed, enter "0" on this line.

Line 115 – Balance after interim refunds

Add the amounts on lines 113B and 114 to calculate the balance after interim refunds. Enter that amount on line 115.

Line 116 – Amount owing and remitted on GST/HST interim return

If a payment was made for a reporting period (do not include instalment payments), enter that amount on line 116 of the applicable reporting period. This includes self-assessed amounts paid by a non-registrant when Form GST489, Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST), and/or Form GST59, GST/HST Return for Imported Taxable Supplies, Qualifying Consideration, and Internal and External Charges, was filed.

Line 117 – Balance

Subtract the amount on line 116 from the amount on line 115 to calculate the balance. Enter the result on this line.

Line 118 – Refund claimed

If the amount on line 117 is a negative amount, enter that amount on line 118 to claim your refund.

Line 119 – Balance due

If the amount on line 117 is a positive amount, enter that amount on line 119. For more information on making a payment, see Filing instructions.

Line 135 – GST/HST new housing rebates paid or credited to a purchaser

Annual filers: Enter on line 135 the total amount of GST/HST new housing rebates in respect of the GST or federal part of the HST or the total amount of provincial new housing rebates in respect of the provincial part of the HST that you paid or credited to eligible purchasers and that are included in the amount you entered on line 107. Do not include on this line the amount of any provincial transitional new housing rebates that you are entitled to claim as a builder or that were assigned to you by eligible purchasers. These rebates are reported on line 111. Attach the rebate applications to the GST494 return.

Monthly and quarterly filers: If you used GST/HST NETFILE to file your interim returns electronically, separately identify the rebate amounts, if any, you reported on line 135 of your interim GST/HST NETFILE returns in the corresponding field (line 135) of your final GST/HST return. Otherwise, enter on line 135 the amount of the rebate included on line 107 of your interim returns.

Line 136 – Deduction for election with pension entity

If you are a qualifying employer that has elected to share a pension rebate amount, separately identify the amount of your net tax deduction allowed in respect of the election. This deduction should be included in the adjustment amounts reported on line 107.

For information on how to calculate the amount of this deduction, refer to Part III of GST/HST Notice 257, The GST/HST Rebate for Pension Entities.

Line 1300 – Provincial transitional new housing rebates assigned to builder by a purchaser (Prince Edward Island)

An amount included on line 1300 should be included in the amount on line 111 of the GST494 return.

Annual filers: Enter the total amount of the provincial transitional new housing rebates that were assigned to you by eligible purchasers on line 1300 of your GST494 return. Attach the rebate applications to the GST494 return.

Monthly and quarterly filers: Enter the total amount of the provincial transitional new housing rebates that were assigned to you by eligible purchasers, if any, that you reported on line 111 of your paper interim returns in the corresponding fields of line 1300 of your final GST/HST return. Enter the rebate amounts, if any, you reported on line 1300 of your interim GST/HST NETFILE returns in the corresponding fields of line 1300 of your final GST/HST return.

Part F – Percentages and totals for provinces and territories

Enter in column 1 or 2 of Schedule A of Part F, as applicable:

• the provincial attribution percentages for each participating province
• the totals for the participating provinces

The amounts for Nova Scotia includes the Nova Scotia offshore area and the amount for Newfoundland includes the Newfoundland offshore area to the extent that offshore activities, as defined in subsection 123(1) of the ETA, are carried on in that area.

If you are an investment plan, enter in column 1 or 2 of Schedule A, as applicable, the percentage related to unallocated amounts and non-residents deemed to be resident in Canada. These percentages are discussed below.

The percentage entered in column 1 or 2 as totals for non-participating provinces is the percentage remaining. The total percentage in column 1 or 2 should equal 100%.

Monthly and quarterly filers that used the preceding year’s provincial attribution percentage on their interim returns that are required to use the current year’s attribution percentage on their final return for their reporting periods should report in column 2 of Schedule A the current year’s percentage used in Part D.

As discussed in the description of Element C, investment plans, other than investment plans with a reconciliation method election or a real-time calculation method election in effect, use the preceding year’s provincial attribution percentage in their SAM formula calculation in Part D. This preceding tax year’s provincial attribution percentage used in Part D should be entered in column 1 of Schedule A.

All other SLFIs would enter in column 2 of Schedule A their current tax year’s provincial attribution percentage that they used in their SAM formula calculation in Part D.

If you are an investment plan, when calculating your provincial attribution percentages for the participating provinces, the attribution percentage related to investors where the required information is unknown is included in the provincial attribution percentage for the province with the highest provincial tax rate. It is important to note that the separate calculation for the unknown information as set out in the particular provincial attribution percentage sections in the SLFI Regulations is entered in column 1 or 2 of Schedule A as “Unallocated amounts”.

Also, if you are an investment plan, enter in column 1 or 2 of Schedule A, as applicable, the percentage related to non residents deemed to be residents by section 225.4 of the ETA. The method used to calculate this percentage should be fair and reasonable and generally used consistently by the investment plan.

Column 3 of Schedule A is the total amount for the fiscal year that is included in Element F of the SAM formula and Element D of the adapted SAM formula for each participating province. In general terms, the amount in column 3 of Schedule A is the total amount for the provincial part of the HST (other than a prescribed amount of tax) for the province paid or payable by the SLFI in the fiscal year, or in a reporting period that ends within two years before the end of the fiscal year that includes the reporting period under specific circumstances for each participating province. (These circumstances are described in the description of Element F.) Fill out column 3 for each participating province.

Part G – Schedule B

B1 – Recaptured input tax credits

SLFIs that are large businesses may be subject to the recaptured ITC (RITC) requirement for classes of specified property and services in respect of the provincial part of the HST for Prince Edward Island.

The rate of recapture in Prince Edward Island was 100% for the five-year period beginning April 1, 2013 and ending March 30, 2018. The RITC requirement is being gradually phased out by reducing the recapture rate over the subsequent three years with the rate being 0% as of April 1, 2021.

A large business will generally be required to account for recaptured ITCs in its GST/HST return for the reporting period in which the ITCs first become available, for example, in the first reporting period in which the provincial part of the HST to which the ITCs relate becomes payable, or is paid without having become payable, although there are some exceptions; for example, for certain meals and entertainment expenses and passenger vehicle lease payments.

SLFIs generally make specific related adjustments as part of their calculation under the SAM formula. These adjustments are calculated in paragraph 46(d) of the SLFI regulations and included in the total amount for Element G of the SAM formula calculation or Element E of the adapted SAM formula for their reporting period.

Where an SLFI calculates RITCs in Element G of the SAM formula or Element E of the adapted SAM formula, G prorates the recapture rate for the phasing out of RITCs. For example, in Prince Edward Island where the recapture rate changed on April 1, 2019 to 50% and the reporting period straddles that date, there will be a calculation for the number of days in the reporting period where the rate is 75% and a calculation for the number of days in the reporting period where the rate is 50%.

SLFIs can elect to use a total tax recovery rate for their RITC calculations using Form RC4605, Total Tax Recovery Rate Election or Revocation for a Selected Listed Financial Institution.

There are exceptions (for example, for specified property and services that relate exclusively to the investigation, settlement or defence of a claim relating to property and casualty insurance or for specified property and services that relate to activities of a provincial series of a stratified investment plan) where SLFIs are subject to the general recapture rules. In this case, the amounts of the RITCs are not included in the SLFI’s SAM formula calculations but are reported on line 104 of their return.

All SLFIs will report the amount of their RITCs for the fiscal year in section B1 of Schedule B of Part G of their GST494 return.

The total RITC amounts included in Element G of the SAM formula or Element E of the adapted SAM formula for the fiscal year are reported on the line for Prince Edward Island (B1-PE) of section B1 and there is no requirement to provide information on the lines "Amounts subject to RITC", "RITC rate" and "RITC amount".

If an SLFI is required to calculate RITCs under the general RITC rules, the SLFI is required to provide the information for Prince Edward Island on the lines “Amounts subject to RITC”, “RITC rate” and “RITC amount” and on line B1-PE.

For a qualifying motor vehicle: If you made a supply by way of sale of a qualifying motor vehicle or removed a qualifying motor vehicle from a specified province and registered it in another province, you may deduct an amount that was included as an RITC where you were required to use the general RITC rule for the qualifying motor vehicle. This deduction is included on line 107 of the return for the relevant reporting period. Report the deduction on line B1V-PE for Prince Edward Island.

B2 – Transitional tax adjustment

If you are a builder who is required to account for the transitional tax adjustment in your net tax calculation, enter the total annual amount of this transitional tax adjustment for the fiscal year in section B2 of Schedule B of Part G of your GST494 return according to the province where the housing is located.

SLFIs who are monthly and quarterly filers do not report their transitional tax adjustment information in Schedule A of their interim GST/HST NETFILE returns. However, these transitional tax adjustment amounts are required to be included in their net tax calculation on these interim returns. Transitional tax adjustment amounts must also be included in the amounts they enter on line 103 of their final GST/HST return. SLFIs who are annual filers must also report transitional tax adjustment amounts on line 103 and include the amount in their net tax calculation.

For more information on the transitional tax adjustment, see the following publications:

• GST/HST Info Sheet GI-095, Harmonized Sales Tax: Information on the Transitional Tax Adjustement for Builders of Housing in Ontario and British Columbia
• GST/HST Info Sheet GI-150, Harmonized Sales Tax: Information on the Transitional Tax Adjustement for Builders of Housing in Prince Edward Island
  

B3 – Sale of grandparented housing

Section B3 of Schedule B is for reporting grandparented housing that is sold to a person where the total sales price (including any amount for any other taxable supply made to the person of an interest in the grandparented housing) is $450,000 or more. It is also for reporting grandparented housing that is self-supplied by a builder in New Brunswick, Newfoundland and Labrador, Nova Scotia, or Prince Edward Island (1%) where the fair market value of the housing is $450,000 or more.

If you are a builder who is required to account for such grandparented housing, report the number of housing units and the total sales amount of this grandparented housing for the fiscal year in section B3 of Schedule B according to the province where the housing is located.

SLFIs who are monthly and quarterly filers do not report their grandparented housing information in Schedule A of their interim GST/HST NETFILE return.

For more information on grandparented housing, see GST/HST Info Sheet GI-118, Builders and GST/HST NETFILE, which includes:

• a description of what is meant by “grandparented housing” for housing located in each of the provinces mentioned above in this section B3
• an explanation of when builders are required to begin reporting information for sales or self-supplies of grandparented housing located in New Brunswick or Newfoundland and Labrador
• an explanation of the three special situations for grandparented housing located in Prince Edward Island
• the old definition of “specified housing supplies” where a builder’s requirement to report information was based on whether the purchaser was entitled to a rebate

B4 – Sale of housing where reseller purchased on grandparented basis

If you are a builder who is required to account for grandparented housing originally purchased without being subject to the provincial part of the HST (or in the case of grandparented housing that was originally purchased and subject to the HST at 13% in Nova Scotia or Newfoundland and Labrador, or 14% in Prince Edward Island) where the sale of the housing by a first reseller is subject to HST at 13% in Ontario, or 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, or Prince Edward Island, report the total number of these housing units and the total amount of the original purchases of these housing units for the fiscal year in section B4 of Schedule B according to the province where the housing is located.

SLFIs who are monthly and quarterly filers do not report their grandparented housing information in Schedule A of their interim GST/HST NETFILE return.

For more information on grandparented housing and the situations described in section B4, see GST/HST Info Sheet GI-118, Builders and GST/HST NETFILE.

Part H – Cerification

Every filer must fill out Part H. You have to sign and date your return.

Provincial attribution percentages

Selected listed financial institutions

An SLFI must calculate its provincial attribution percentage for each participating province to use the SAM formula to calculate its liability for the provincial part of the HST for a particular period.

The provincial attribution percentage for each participating province for a particular period is determined according to prescribed rules described in sections 16 to 39 of Part 2, Percentage for a Participating Province, of the SLFI Regulations. It is Element C in the SAM formula and Element A₃ or A₆ in the adapted SAM formula.

A particular period means:

• (a) for the purpose of the description of Element C of the SAM formula in subsection 225.2(2) of the ETA or A₆ in the adapted SAM formula in paragraph 48(1)(b) of the SLFI Regulations, a tax year
• (b) for the purpose of the determining the amount for Element C in subsection 228(2.2) of the ETA (interim returns in the first fiscal year of becoming an SLFI for persons other than investment plans), a reporting period
• (c) for the purpose of the description of D in subparagraph 237(5)(b)(ii) of the ETA (instalment payments in the first fiscal year of becoming an SLFI for persons other than investment plans), a fiscal quarter

The following paragraphs provide specific information on the general rules for corporations and the rules for individuals, insurers, banks and credit unions, trust and loan corporations, and qualifying partnerships.

If an SLFI is a corporation that has a permanent establishment in a participating province, its provincial attribution percentage for the particular period for that province is:

• (a) except where paragraph (b) or (c) below applies, 1/2 of the total of both of the following:
  • (i) the percentage that its gross revenue reasonably attributable to its permanent establishments in that province is of its total gross revenue
  • (ii) the percentage that the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in that province is of the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in Canada
• (b) if its total gross revenue for the period is nil, the percentage that the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in the participating province is of the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in Canada
• (c) if its total of all salaries and wages paid for the period by the SLFI to employees of its permanent establishments in Canada is nil, the percentage that its gross revenue reasonably attributable to its permanent establishments in that province is of its total gross revenue

For purposes of applying the preceding paragraphs and the definition “total gross revenue” in subsection 16(1) of the SLFI Regulations to an SLFI that is not an individual, gross revenue for the particular period is reasonably attributable to a particular permanent establishment if that gross revenue would be attributable to that permanent establishment under subsections 402(4) and (4.1) and 413(1) of the Income Tax Regulations if the SLFI were a taxpayer under the ITA.

Gross revenue does not include interest on bonds, debentures or mortgages, dividends on shares of capital stock, or rentals or royalties from property that is not used in connection with the principal business operations of the SLFI.

If an SLFI is an individual that has a permanent establishment in a participating province, its provincial attribution percentage for a particular period for that province is 1/2 of the total of both of the following:

• (a) the percentage that its gross revenue reasonably attributable to its permanent establishments in that province is of its total gross revenue
• (b) the percentage that the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in that province is of the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in Canada

For purposes of applying the above and the definition of “total gross revenue” in subsection 16(1) of the SLFI Regulations to an SLFI that is an individual, the gross revenue for a particular period for an SLFI is reasonably attributable to a particular permanent establishment if that gross revenue would be attributable to that permanent establishment under subsection 2603(4) of the Income Tax Regulations if the SLFI were a taxpayer under the ITA.

For both individuals and corporations, if the SLFI pays a fee to another person under an agreement under which that other person or employees of that other person perform services for the SLFI that would normally be performed by the SLFI’s employees, the fee is deemed to be salary paid by the SLFI and the part of the fee that may reasonably be regarded as payment in respect of services rendered at a permanent establishment of the SLFI is deemed to be salary paid to an employee of the permanent establishment. A fee paid by the SLFI does not include a commission paid to a person that is not an employee of the SLFI.

If an SLFI is an insurer that has a permanent establishment in a participating province, despite the calculations above for individuals and corporations, its provincial attribution percentage for the particular period for that province is calculated using the formula:

A/B

where:

A is the total of its net premiums in respect of the insurance of risk for property situated in the province and of its net premiums in respect of the insurance of risk for persons resident in that province that are included in computing its income for the purposes of Part I of the ITA or that would be included if the SLFI was an insurance corporation

B is the total of its net premiums in respect of the insurance of risk for property situated in Canada and of its net premiums in respect of the insurance of risk for persons resident in Canada that are included in computing its income for the purposes of Part I of the ITA or that would be included if the SLFI was an insurance corporation

For purposes of this calculation, “net premiums” of an SLFI for a particular period means the total of gross premiums received by the SLFI (other than consideration received for annuities) minus the total of all of the following:

• premiums for reinsurance paid by the SLFI
• dividends or rebates paid or credited to policy holders by the SLFI
• rebates or returned premiums paid by the SLFI in respect of the cancellation of policies
  

Do not include any amounts that relate to an insurance policy issued by an SLFI in the determination of the SLFI’s net premiums to the extent that:

• if the policy is a life or accident and sickness insurance policy (other than a group policy), the policy is issued in respect of an individual who at the time the policy becomes effective, is a non-resident individual
• if the policy is a group life or accident and sickness insurance policy, the policy relates to non-resident individuals who are insured under the policy
• if the policy is a policy in respect of real property, the policy relates to real property situated outside Canada
• if the policy is a policy of any other kind, the policy relates to risks that are ordinarily situated outside Canada

If an SLFI is a bank or a credit union that has a permanent establishment in a participating province, its provincial attribution percentage for the particular period for that province, despite the rules for corporations, is 1/5 of the total of both of the following:

• the percentage that the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in that province is of the total of all salaries and wages paid by the SLFI to employees of its permanent establishments in Canada
• four times the percentage that the total amount of loans and deposits of its permanent establishments in that province is of the total amount of all loans and deposits of its permanent establishments in Canada

The amount of loans or deposits for a particular period is determined by the formula:

A/B

where:

A is the total amounts outstanding on the loans made by the SLFI or the total amounts on deposit with the SLFI, at the close of business on the last day of each calendar quarter that ends in the particular period

B is the number of calendar quarters that end in the particular period

For the purpose of applying the above, loans and deposits do not include any of the following:

• bonds, stocks, debentures, items in transit and deposits in favour of her Majesty in right of Canada
• any loan made to and any deposit held by a non-resident person, unless the loan or deposit is a debt or financial instrument included in any of paragraphs 1(a) to (e) of Part IX of Schedule VI of the ETA.

Salaries and wages paid by the SLFI do not include salary or wages paid to an employee of the SLFI to the extent that the salary or wages are reasonably attributable to the rendering by the employee of the services, the supply of which is zero-rated supplies.

If an SLFI is a trust and loan corporation, a trust corporation, or a loan corporation that has a permanent establishment in a participating province, its provincial attribution percentage for the particular period for that province, despite the rules for corporations, is the percentage that the gross revenue for the particular period of its permanent establishments in that province is of the total gross revenue of its permanent establishments in Canada.

For the purpose of applying the above, “gross revenue for the particular period of its permanent establishments in the participating province” means the total of the gross revenue of the SLFI for the period arising from all of the following:

• loans secured by land situated in the participating province
• loans, not secured by land, made to persons residing in the participating province
• loans, other than loans secured by land situated in a country other than Canada in which the SLFI has a permanent establishment:
  • made to persons residing in a country other than Canada in which the SLFI does not have a permanent establishment, and
  • administered by a permanent establishment in the participating province
• business conducted at its permanent establishments in the participating province, other than business that gives rise to revenue in respect of loans

If an SLFI (other than an insurer) is a qualifying partnership, its provincial attribution percentage for a participating province for the particular period, if all of the members of the qualifying partnership are individuals, would be determined according to the rules for individuals discussed above. In any other case, its provincial attribution percentage would be determined according to the rules for corporations discussed above.

Investment plans

The specific rules for calculating the provincial attribution percentage for investment plans are described in sections 28 to 38 of the SLFI Regulations.

An investment plan will use its provincial attribution percentage based on the immediately preceding tax year (referred to as "preceding year" or "general method") for Element C in the SAM formula (as provided for in subsection 48(3) of the SLFI Regulations) as long as subsection 48(1) or (2) of the SLFI Regulations does not apply and the investment plan does not have an election to use the reconciliation method under section 50 of the SLFI Regulations in effect.

Under subsection 48(1) of the SLFI Regulations:

• If a stratified investment plan has a real-time calculation method election under section 49 or 64 of the SLFI Regulations in effect for a series, the attribution percentage is the quarterly, monthly or daily attribution percentage, as applicable.
• If the stratified investment plan has a reconciliation method election under section 50 of the SLFI Regulations in effect for the series, the attribution percentage for the reporting period is the current tax year’s percentage.
• If no reconciliation method or real-time calculation method election is in effect, the attribution percentage is the percentage for the series for the preceding tax year.
  

Under subsection 48(2) of the SLFI Regulations, if a non-stratified investment plan has a real-time calculation method election under section 49 or 61 of the SLFI Regulations in effect, the attribution percentage is the quarterly, monthly, or daily attribution percentage, as applicable.

Certain stratified and non-stratified investment plans can make or revoke a reconciliation method election or a real-time calculation method election. For more information, see Form RC4609, Election or Revocation of Election to Use the Real-Time Calculation Method or the Reconciliation Method.

If a reconciliation method election is in effect for the reporting period, the provincial attribution percentage for the current tax year is used for Element C in the GST494 return.

Unless an election is in effect under subsection 225.4(6) or (7) of the ETA (using Form RC4610, Election to Have Subsection 225.4(3), (4) or (5) Not Apply to Non-Resident Investments in Certain Selected Listed Financial Institutions and Notice of Revocation), the units held by non-residents in an investment plan are treated as units held by residents of Canada but not residents of any participating province. This election can only be made by investment plans.

Unallocated amounts are subject to the highest provincial tax rate among the participating provinces.

The method for calculating the provincial attribution percentage varies depending on the type of investment plan.

For example, for pension entities, the method of calculating the attribution percentage depends on whether the pension plan is a defined benefits or a defined contribution pension plan.

For a defined contribution pension plan, the provincial attribution percentage is calculated using the formulas in section 35 of the SLFI Regulations and, in general terms, is based on the total value of assets of the pension plan that are reasonably attributable to plan members resident in the participating province divided by the total value of assets of the pension plan that are reasonably attributable to plan members resident in Canada.

For a defined benefits pension plan, the provincial attribution percentage is calculated using the formulas in section 36 of the SLFI Regulations and, in general terms, is based on the total value of actuarial liabilities of the pension plan that are reasonably attributable to plan members resident in the participating province divided by total value of actuarial liabilities of the pension plan that are reasonably attributable to plan members resident in Canada.

If an investment plan is a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part is a defined benefits pension plan, section 38 of the SLFI Regulations provides a formula to calculate the investment plan’s provincial attribution percentage.

For a private investment plan that is a trust governed by a deferred profit sharing plan, an employees profit sharing plan, a group registered education savings plan or a retirement compensation arrangement, the provincial attribution percentage is also calculated based on the same formulas in section 35 of the SLFI Regulations used for a defined contribution pension plan. In general terms, this calculation is the total value of assets of the investment plan that are reasonably attributable to plan members that are resident in the participating province divided by the total value of assets that are reasonably attributable to plan members resident in Canada.

For a private investment plan that is an employee life and health trust or a trust governed by an employee benefit plan, an employee trust or a registered supplementary unemployment benefit plan, the provincial attribution percentage is calculated based on the formulas in section 37 of the SLFI Regulations. In general terms, this calculation is the total number of plan members that are resident in the participating province divided by the total number of plan members resident in Canada.

Depending on the situation, a stratified investment plan calculates the provincial attribution percentage for its series based on the formulas in section 29, 30 or 33 of the SLFI Regulations.

Depending on the situation, a non-stratified investment plan calculates its provincial attribution percentage based on the formulas in section 31, 32 or 34 of the SLFI Regulations.

However, under section 225.3 of the ETA, a non-stratified investment plan that is an exchange-traded fund or the exchange-traded series of a stratified investment plan can request authorization to use its own particular methods to determine the provincial attribution percentage of a participating province for purposes of the SAM formula. For more information, see Form RC4611, Application for Authorization or Revocation for an Exchange-Traded Fund to Use Particular Methods to Determine its Provincial Attribution Percentages.

Specific rules for new investment plans are outlined in subsection 31(4) and sections 57 to 61 of the SLFI Regulations. As well, specific rules for new series of a stratified investment plan are outlined in subsections 29(4) and 58(2) and sections 62 to 64 of the SLFI Regulations.

Refer to subsections 30(4), 32(4), 33(3) and 34(3) and sections 47, 65 and 66 of the SLFI Regulations for more information about plan mergers as that term is described in subsection 16(1) of the SLFI Regulations for distributed investment plans.

Attribution point

The attribution point is the date used to calculate the provincial attribution percentage for a participating province for an investment plan, or for a series of a stratified investment plan, for the purpose of applying the SAM formula or the adapted SAM formula. Section 16 and 47 of the SLFI Regulations defines the term “attribution point”. The applicable date for the attribution point depends on the type of investment plan and whether the SLFI investment plan has made an attribution point election under section 18 of the SLFI Regulations. For more information, see Form RC4614, Attribution Point Election and Revocation for a Selected Listed Financial Institution.

Section 58 of the SLFI Regulations provides specific rules for new investment plans.

Section 66 of the SLFI Regulations provides information related to plan mergers.

Prescribed amounts of tax

A "prescribed amount of tax" for purposes of paragraph (a) of Element A of the SAM formula (Elements A₁ and A₄ of the adapted SAM formula in section 48 of the SLFI Regulations) is an amount described in section 40 and paragraph 55(2)(a), 60(a) and 63(a) of the SLFI Regulations.

A “prescribed amount of tax” for purposes of paragraph (a) of Element F in the SAM formula (Element D of the adapted SAM formula) is an amount described in section 40 and paragraph 55(2)(a) of the SLFI Regulations.

The following amounts are prescribed amounts of tax under section 40 of the SLFI Regulations:

• any amount of tax that became payable, or that was paid without having become payable, by an insurer in respect of property or services acquired, imported or brought into a participating province exclusively and directly for consumption, use or supply in the course of investigating, settling or defending a claim arising under an insurance policy (other than an accident and sickness insurance or life insurance policy)
• any amount of tax that became payable, or that was paid without having become payable, by an SLFI, in respect of a supply or importation of property referred to in subsection 259.1(2) of the ETA (under certain circumstances, a specified person, as defined in subsection 259.1(1), can claim a book rebate under subsection 259.1(2))
• any amount of tax that became payable, or that was paid without having become payable, by a stratified investment plan in respect of property or a service, to the extent that the property or service was acquired, imported or brought into a participating province for consumption, use or supply in the course of activities relating to a provincial series of the stratified investment plan

In addition, under paragraph 55(2)(a) of the SLFI Regulations, if you are an investment plan with a tax adjustment transfer election in effect for the reporting period, the following amounts are prescribed amounts of tax:

• any amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the ETA is prescribed for the investment plan for purposes of paragraph (a) of Element A of the SAM formula (Element A₁ and A₄ of the adapted SAM formula)
• any amount of tax under any of subsection 165(2) and sections 212.1 and 218.1 and Division IV.1 of Part IX of the ETA is prescribed for the investment plan for the purposes of paragraph (a) of Element F in the SAM formula (Element D of the adapted SAM formula), if the amount of tax meets all of the following conditions:
  • It is in respect of a supply made by the investment plan manager to the investment plan.
  • It became payable by the investment plan, or was paid by the investment plan without having become payable during the investment plan manager’s reporting period at a time when a tax adjustment transfer election, but not a reporting entity election, is in effect between the investment plan and the manager.
    

Where certain conditions are met, a new non-stratified investment plan can elect under section 60 of the SLFI Regulations, and a stratified investment plan with a new series can elect under section 63 of the SLFI Regulations, to have any amount of tax under subsection 165(1) and sections 212, 218 and 218.01 of the ETA that became payable, or was paid without becoming payable, on or before the attribution point for the preceding tax year, to be a prescribed amount of tax for purposes of paragraph (a) of Element A of the SAM formula.

Consolidated filing for investment plans

Where a group of two or more investment plans have a consolidated filing election under subsection 54(1) of the SLFI Regulations in effect on the particular day on or before which an interim or final return under Division V of Part IX of the ETA for a reporting period of those investment plans is required to be filed, the investment plan manager would file a single consolidated return on behalf of the group of investment plans.

If you are a stratified investment plan or if an investment plan manager files a return for a consolidated SLFI group of investment plans, the amounts reported in Part D, Part E, Part F, and Part G of the GST494 return are consolidated total amounts for all of the series of the stratified investment plan or for all investment plans in the consolidated SLFI group.

Each investment plan in a consolidated SLFI group of investment plans must do a separate SAM formula calculation for each applicable participating province and completes a net tax calculation. Details of these calculations must be kept for audit purposes.

A stratified investment plan must do a separate SAM formula calculation for each series of the investment plan in each applicable participating province. Details of these calculations must be kept for audit purposes.

For both a stratified investment plan and a consolidated SLFI group of investment plans, it is the consolidated average percentages that will be entered in Schedule A and used in the calculation of lines 3080 and 3100 of the GST494 return. This is for reporting purposes only.

The approach used by the stratified investment plan or the investment plan manager to calculate this percentage with respect to the series of the group of investment plans should be fair and reasonable and used consistently.

The following is an example of one approach that may be used to calculate the consolidated average percentage for all of the series of a stratified investment plan. The same method may be used to calculate the consolidated average percentages for a consolidated SLFI group of investment plans.

The consolidated average percentage(s) that would be entered in Schedule A and the applicable lines of the GST494 return are as follows:

SI Plan will enter the consolidated average percentage of 38.25% on line 3080.

SI Plan will enter the consolidated average percentage of 19.4% on line 3100 (2.2% + 4.2% + 10.3% + 2.2% + 0.5%).

When can you expect your refund?

As long as you have included all the necessary information and filled out your GST/HST return correctly, your refunds of net tax claimed will be processed with the least possible delay. We aim to achieve a 95% service standard to process paper returns in eight weeks and electronically filed returns (NETFILE, TELEFILE, EDI, and GIFT returns) in four weeks.

Refund holds

If you have to file any returns under the Excise Tax Act, the Income Tax Act, the Excise Act, 2001, or the Air Travellers Security Charge Act, but have not done so, any GST/HST refund or rebate you are entitled to will be held until all required returns are filed.

Refund off-sets

If you have any outstanding amounts owing under the Excise Tax Act, the Income Tax Act, the Excise Act, 2001, or the Air Travellers Security Charge Act, any GST/HST refund or rebate that you are entitled to may be used to pay that outstanding amount. Any difference will be refunded to you.

What interest do we pay on overpayments and refunds?

We will pay you interest, compounded daily, on an overpayment or refund of net tax claimed on a GST/HST return beginning from the later of:

• 30 days after the day you file the return in which you claim the refund
• 30 days after the day after the end of the reporting period that is covered by that return
• the date of the payment that created the overpayment
  

The calculation of interest we pay ends on the day the refund is paid or applied. The interest rate we will use is equal to the basic rate plus 2%. The interest rate for corporations is equal to the basic rate, which is based on the rate charged on 90-day Treasury bills, adjusted quarterly, and rounded up to the nearest whole percentage.

Penalty and interest

Penalties

Failure to file

A penalty will apply to any return you file late unless there is a $0 amount owing or we owe you a refund on that return. We will calculate the penalty using the following formula:

A + (B × C)

where:

A is 1% of the amount owing

B is 25% of A

C is the number of months the return is overdue, to a maximum of 12 months

Demand to file

If you receive a demand to file a return and do not do so, a penalty of $250 will be charged.

You cannot claim an income tax deduction for any penalty paid or payable for failing to file a GST/HST return.

Interest

Interest equal to the basic rate plus 4% will be charged on an overdue amount.

The basic rate is based on the rate charged on 90-day Treasury bills, adjusted quarterly, and rounded up to the nearest whole percentage.

We charge interest on the following amounts:

• any overdue balance owing on a GST/HST return
• late or insufficient instalment payments
• any other overdue GST/HST amount that you have to remit to the Receiver General

You can request an interest review or a statement of interest online, by selecting “Enquiries service” at My Business Account or through Represent a Client.

Filing nil returns

File a GST/HST return for every reporting period, even if you have no net tax to remit and are not expecting a refund. In other words, even if you have no business transactions in a reporting period, you still have to file a return. Otherwise, you may experience delays in getting refunds and you could receive a failure to file reminder notice. We may also charge a penalty for not filing a GST34-2, GST62, or GST494 return.

After you file

Notices and statements

Notice of (re)assessment

We issue a notice of (re)assessment if we owe you a refund or rebate or if the (re)assessment results in an amount owing that is greater than the payment made upon filing. If you are registered for online mail, once we have processed your GST/HST return we will send you an email notification to inform you that there is mail available for you to view online. You can sign up for online mail by entering an email address when filing a GST/HST NETFILE return.

View the notice of (re)assessment or register for online mail at My Business Account , or go to Represent a Client if you are an authorized representative.

This notice explains the results of our assessment of your GST/HST return. It also explains any changes that we made to your return. If there is an amount owing after we assess or reassess your return, we will send you Form RC159, Amount Owing Remittance Voucher with your notice. Use this form to pay any outstanding amount.

You can also pay the outstanding amount online at Pay now with My Payment.

You will not receive a notice of assessment when:

• a return is filed and no business activity has been reported (nil return)
• a return is filed and the amount owing on the return equals the payment made upon filing.

Statement of arrears

The statement of arrears for GST/HST is no longer being issued. To check your up-to-date account balance and transactions, or to request your personalized remittance voucher, go to My Business Account or Represent a Client.

Keeping records

Usually, you have to keep all sales and purchase invoices and other records related to your business operations and GST/HST for six years from the end of the year to which they relate. However, we may ask you to keep the invoices longer than six years. If you want to destroy your records earlier, you have to send us a written request and wait for our written approval to do so. For more information, see GST/HST Memorandum 15.1, General Requirements for Books and Records.

We administer an audit program. Our auditors may ask to see your records. During an audit, we will make sure that you have charged and reported GST/HST when required, and that you are entitled to all the ITCs that you claimed on your returns.

If we audit your records, you will receive a preliminary statement of audit adjustments. You have 30 days to analyze and discuss the adjustments with the auditor and make any representations. After that period, we will issue a notice of (re)assessment.

The notice of (re)assessment explains the results of any assessment or reassessment of your GST/HST return. It also explains any changes that we made to your return. If there is an amount owing after we assess or reassess your return, we will send Form RC159, Amount Owing Remittance Voucher, for you to use to make your remittance. To make your remittance online, go to Pay now with My Payment.

If you think we have misinterpreted the facts or applied the law incorrectly, you have the right to object to assessments and reassessments of the GST and HST. Filing an objection is the first step in the formal process of resolving a dispute. The time limit for filing an objection is 90 days from the date on the notice. To file an objection, fill out Form GST159, Notice of Objection (GST/HST).

APPENDIX A – Adapted SAM formula

Adapted SAM formula for stratified investment plans

The SAM formula in subsection 225.2(2) of the ETA is adapted under subsection 48(1) of the SLFI Regulations for stratified investment plans. Certain amounts in the adapted SAM formula are based on elements of the SAM formula without adaptation (see The special attribution method (SAM) formula).

The adapted SAM formula for stratified investment plans is:

[A × (B/C)] – D + E

where, in general terms:

A is the total of all amounts, each of which is determined for a series of the SLFI (other than a provincial series), equal to the amount calculated under paragraph (a) or (b) of this element:

(a) If an election for the real time calculation method under section 49 or 64 of the SLFI Regulations is in effect in respect of the series throughout the particular reporting period, the total of all amounts, each of which is the positive or negative amount determined for a particular day in the particular reporting period, by the following formula:

(A1 – A2) × A3

where:

A1 – A2 is the unrecoverable GST and federal part of the HST relating to the series (Element A and Element B amounts in the SAM formula)

A3 is the SLFI’s provincial attribution percentage for the series for the participating province determined for that class of SLFI in accordance with the SLFI Regulations as of one of the following days:

– (i) If the election for the real time calculation method indicates that the SLFI’s percentages for the series are to be determined on a quarterly, monthly, or weekly basis, as of the first business day of the calendar quarter, calendar month, or week that includes the particular day, or other such day of that quarter, month or week that the Minister may allow on application.

– (ii) In any other case, as of the particular day.

(b) If no election for the real time calculation method under section 49 or 64 of the SLFI Regulations is in effect in respect of the series throughout the particular reporting period, the positive or negative amount determined by the following formula:

(A4 – A5) × A6

where:

A4 – A5 is the unrecoverable GST and federal part of the HST relating to the series (Element A and Element B amounts in the SAM formula)

A6 is one of the following:

– (i) if a reconciliation method election under section 50 of the SLFI Regulations is in effect throughout the particular reporting period, the SLFI’s provincial attribution percentage for the series, for the participating province for the tax year determined for that class of SLFI in accordance with the SLFI Regulations

– (ii) in any other case, the SLFI’s provincial attribution percentage for the series, for the participating province for its immediately preceding tax year determined for that class of SLFI in accordance with the SLFI Regulations

B is the tax rate for the particular participating province (Element D of the SAM formula)

C is the tax rate for the GST or the federal part of the HST (Element E of the SAM formula)

D is the total of both of the following amounts:

(a) all amounts each of which is an amount of the provincial part of the HST, other than an amount of tax prescribed under section 40 or paragraph 55(2)(a) of the SLFI Regulations, that became payable or was paid without being payable by you in respect of a supply made in the participating province

(b) all amounts each of which is an amount in respect of a supply of property or a service made by a supplier to you during the particular reporting period with respect to which your election under subsection 225.2(4) of the ETA applies, equal to the provincial part of the HST payable by the supplier that is included in the supplier’s cost of providing the property or service to you (Element F of the SAM formula)

E is the total of all prescribed amounts for the purposes of Element G of the SAM formula in subsection 225.2(2) of the ETA if that subsection was read without reference to any adaptation made to it under the SLFI Regulations

Adapted SAM formula for non-stratified investment plans with a real-time calculation method election in effect

The SAM formula in subsection 225.2(2) of the ETA is adapted under subsection 48(2) of the SLFI Regulations for non-stratified investment plans with a real-time calculation method election under section 49 or 61 of the SLFI Regulations in effect throughout the particular reporting period.

The adapted SAM formula for non-stratified investment plans with a real-time calculation method election in effect for the reporting period is:

[A × (B/C)] – D + E

where, in general terms:

A is the total of all positive or negative amounts, each of which is determined for a particular day in the particular reporting period by the following formula:

(A1 – A2) × A3

where:

A1 – A2 is the unrecoverable GST and federal part of the HST (Element A and Element B amounts in the SAM formula)

A3 is the SLFI’s provincial attribution percentage for the participating province determined for that class of SLFI in accordance with the SLFI Regulations as of one of the following days:

– (i) if the election for the real time calculation method indicates that the SLFI’s percentages are to be determined on a quarterly, monthly, or weekly basis, as of the first business day of the calendar quarter, calendar month, or week that includes the particular day, or other such day of that quarter, month or week that the Minster may allow on application by the SLFI

– (ii) in any other case, as of the particular day

B is the tax rate for the particular participating province (Element D of the SAM formula)

C is the tax rate for the GST or the federal part of the HST (Element E of the SAM formula)

D is the total of both of the following amounts:

(a) all amounts each of which is an amount of the provincial part of the HST, other than an amount of tax prescribed under section 40 or paragraph 55(2)(a) of the SLFI Regulations, that became payable or was paid without being payable by you in respect of a supply made in the participating province

(b) all amounts each of which is an amount in respect of a supply of property or a service made by a supplier to you during the particular reporting period with respect to which your election under subsection 225.2(4) of the ETA applies, equal to the provincial part of the HST payable by the supplier that is included in the supplier’s cost of providing the property or service to you (Element F of the SAM formula.)

E is the total of all prescribed amounts for the purposes of Element G of the SAM formula in subsection 225.2(2) of the ETA if that subsection were read without reference to any adaptation made to it under the SLFI Regulations.

Forms and publications

The following is a list of some of the elections, application forms, returns, guides, and technical publications that are mentioned throughout this guide. To get copies of these and other GST/HST publications, go to GST/HST related forms and publications.

Forms

GST20-1, Notice of Revocation of an Election for GST/HST Reporting Period by a Listed Financial Institution

GST34-2, Goods and Services Tax/ Harmonized Sales Tax (GST/HST) Return for Registrants

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

GST111, Financial Institution GST/HST Annual Information Return

GST189, General Application for Rebate of GST/HST

GST494, GST/HST Final Return for Selected Listed Financial Institutions

RC4601, GST/HST Reporting Entity Election for a Selected Listed Financial Institution and Notice of Revocation

RC4602, Request for a Group GST/HST Registration Number for Selected Listed Financial Institutions with Consolidated Filing

RC4602-1, Request to be Added to a Group GST/HST Registration for Selected Listed Financial Institutions with Consolidated Filing

RC4603, GST/HST Tax Adjustment Transfer Election for a Selected Listed Financial Institution and Notice of Revocation

RC4604, GST/HST Consolidated Filing Election for a Selected Listed Financial Institution and Notice of Revocation

RC4604-1, Election for a Selected Listed Financial Institution to Join a GST/HST Consolidated Filing Election

RC4604-2, Election for a Selected Listed Financial Institution to Withdraw From a GST/HST Consolidated Filing Election

RC4605, Total Tax Recovery Rate Election and Revocation for a Selected Listed Financial Institution

RC4607, GST/HST Pension Entity Rebate Application and Election

RC4609, Election or Revocation of Election to Use the Real-Time Calculation Method or the Reconciliation Method

RC4610, Election to Have Subsection 225.4(3), (4) or (5) Not Apply to Non-Resident Investments in Certain Selected Listed Financial Institutions and Notice of Revocation

RC4611, Application for Authorization or Revocation for an Exchange-Traded Fund to Use Particular Methods to Determine Its Provincial Attribution Percentages

RC4614, Attribution Point Election and Revocation for a Selected Listed Financial Institution

Guides

RC4022, General Information for GST/HST Registrants

RC4419, Financial Institution GST/HST Annual Information Return

GST/HST Memoranda Series

17.6, Definition of "Listed Financial Institution"

17.6.1, Definition of "Selected listed Financial Institution"

GST/HST Technical Information Bulletin

B-107, Investment Plans (Including Segregated Funds of an Insurer) and the HST

GST/HST Notices

Notice 257, GST/HST Rebate for Pension Entities

Notice 288, Consolidated Filing for Investment Plans that Are Selected Listed Financial Institutions

Remittance vouchers

RC158, GST/HST NETFILE/TELEFILE Remittance Voucher

RC159, Amount Owing Remittance Voucher

RC160, Interim Payments Remittance Voucher

RC177, Balance Due Remittance Voucher

Digital services

GST/HST electronic filing and remitting

You have several options for filing your GST/HST return or remitting an amount owing electronically. For more information, go to Complete and file a return – File the return.

Handling business taxes online

Use the CRA’s digital services for businesses throughout the year to:

• make payments to the CRA online with My Payment or a pre-authorized debit agreement, or create a QR code to pay in person at Canada Post
• file a return, view the status of filed returns, and adjust returns online
• submit documents to the CRA
• authorize a representative for online access to your business accounts
• register to receive email notifications and to view mail from the CRA in My Business Account
• manage addresses
• manage direct deposit information
• file an election
• view and pay account balance
• calculate a future balance
• transfer payments and immediately view updated balances
• make an online request regarding your account and view answers to common enquiries
• submit an audit enquiry
  

To log in to or register for the CRA’s digital services, go to:

• My Business Account, if you are a business owner
  
• Represent a Client, if you are an authorized representative or employee

For more information, go to E-services for businesses.

CRA BizApp

CRA BizApp is a mobile web app for small business owners and sole proprietors. The app offers secure access to view accounting transactions, pay outstanding balances, make interim payments, and more.

You can access CRA BizApp on any mobile device with an Internet browser—no app stores needed! To access the app, go to Mobile apps – Canada Revenue Agency.

Receiving your CRA mail online

Sign up for email notifications to get most of your CRA mail, like your notice of assessment, online.

For more information, go to Email notifications from the CRA – Businesses.

Authorizing the withdrawal of a predetermined amount from your Canadian chequing account

Pre-authorized debit (PAD) is a secure, online self-service payment option for individuals and businesses. This option lets you set the payment amount you authorize the CRA to withdraw from your Canadian chequing account to pay your tax on a specific date or dates you choose. You can set up a PAD agreement using the CRA’s secure My Business Account service at My Business Account, or the CRA BizApp at Mobile apps – Canada Revenue Agency. PADs are flexible and managed by you. You can use My Business Account to view historical records, modify, cancel, or skip a payment. For more information, go to Pay by pre-authorized debit.

Electronic payments

Make your payment using:

• your financial institution’s online or telephone banking services
  
• the CRA’s My Payment service at Pay now with My Payment
  
• your credit card through one of the CRA’s third-party service providers
  
• PayPal or Interac e-trasnfer through one of the CRA’s third-party service providers
  
• pre-authorized debit at My Business Account
  

For more information, go to Payments to the Canada Revenue Agence.

For more information

What if you need help?

If you need more information after reading this publication, go to GST/HST and QST – Financial institutions, including selected listed financial institutions or call 1-855-666-5166.

Direct deposit

Direct deposit is a fast, convenient and secure way to get your CRA payments directly into your account at a financial institution in Canada. For more information and ways to enrol, go to Direct deposit – Canada Revenue Agency.

Forms and publications

The CRA encourages electronic filing of your return. If you require a paper version of our forms and publications, go to GST/HST related forms and publications or call 1-800-959-5525.

Ordering personalized remittance forms

The following personalized remittance forms are not available on our website. We only provide them in a pre-printed format:

• RC158, GST/HST NETFILE/TELEFILE Remittance Voucher
• RC159, Amount Owing Remittance Voucher
• RC160, Interim Payments Remittance Voucher
• RC177, Balance Due Remittance Voucher
  

You can order these remittance vouchers online, by selecting the “Enquiries service” at My Business Account or through Represent a Client.

Excise and GST/HST News

As a GST/HST registrant, you may want to review the quarterly issues of the Excise and GST/HST News, which discuss different issues that concern GST/HST registrants, including new online services. We can notify you by email when new information on a subject of interest to you is available on our website. To subscribe to our electronic mailing lists, go to Canada Revenue Agency electronic mailings list. You can also go to GST/HST technical information to read the latest edition of Excise and GST/HST News online.

Teletypewriter (TTY) users

If you have a hearing or speech impairment and use a TTY, call 1-800-665-0354.

If you use an operator-assisted relay service, call our regular telephone numbers instead of the TTY number.

GST/HST rulings and interpretations

You can request a ruling or interpretation on how the GST/HST applies to a specific transaction for your operations. This service is provided free of charge. For the mailing address or fax number of the closest GST/HST Rulings centre, see the publication RC4405, GST/HST Rulings – Experts in GST/HST Legislation, GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, or call 1-800-959-8287.

Service-related complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the CRA; see the Taxpayer Bill of Rights.

If you are not satisfied with the service you received, try to resolve the matter with the CRA employee you have been dealing with or call the telephone number provided in the CRA’s correspondence. If you do not have contact information, go to Contact the Canada Revenue Agency.

If you still disagree with the way your concerns were addressed, you can ask to discuss the matter with the employee’s supervisor.

If you are still not satisfied, you can file a service complaint by filling out Form RC193, Service Feedback. For more information and how to file a complaint, go to Submit service feedback.

If the CRA has not resolved your service-related complaint, you can submit a complaint with the Office of the Taxpayers' Ombudsman.

Formal disputes (objections and appeals)

You can file a formal dispute or objection if you think the CRA misinterpreted the facts of your tax situation or applied the tax law incorrectly.

For more information about objections or formal disputes, go to Service feedback, objections, appeals, disputes, and relief measures.

Reprisal complaints

If you have previously submitted a service-related complaint or requested a formal review of a CRA decision and feel that, as a result, you were not treated impartially by a CRA employee, you can submit a reprisal complaint by filling out Form RC459, Reprisal Complaint.

For more information about complaints and disputes, go to Service feedback, objections, appeals, disputes, and relief measures.