TAX NEWS - JUNE 2010

Canada Tax: Proposed changes to the Harmonized Sales Tax rules for financial institutions

Canada Department of Finance released today proposed changes to the Harmonized Sales Tax (HST) rules intended to provide for a level playing field for financial institutions in terms of where they locate their business premises and where they purchase their business inputs.

The Backgrounder also details proposed transitional rules related to the implementation of the Harmonized Sales Tax (HST) in BC and Ontario. These new rules will be of particular interest to pension entities, mortgage investment corporations, deferred profit sharing plans, employee profit sharing plans, retirement compensation arrangements, employee trusts, employee benefit plans, health and welfare trusts, and registered supplementary unemployment benefit plans.