Related Documents:
The Department of Finance today released proposed changes to the Harmonized Sales Tax (HST) measures in respect of: certain financial institutions; rules and rates for streamlined accounting methods; and transitional rules for Ontario and British Columbia in respect of interment rights.
Details relating to the vast majority of the proposed changes applicable to financial institutions proposed in the May 19, 2010 document, Financial Institution Rules for the Harmonized Sales Tax, can be found in the attached draft regulations. These changes are being proposed to ensure that the rules continue to function properly in the context of the modernized HST Framework, which provides additional flexibility to provinces in areas such as the rate of the provincial component of the HST. The proposed changes are intended to provide a level playing field for financial institutions in terms of where they locate and where they purchase their business inputs, and result in the appropriate amount of tax being collected for HST provinces.
The attached backgrounder describes a number of proposed technical clarifications and other improvements that follow from comments received during consultations on the document, Financial Institution Rules for the Harmonized Sales Tax. Some of the proposed technical clarifications and other improvements in the attached backgrounder are also included in the draft regulations.
The remaining details on the proposed changes in respect of financial institutions will be included, at an early opportunity, in regulations that will be submitted for approval by the Governor in Council or in proposed amendments to the Excise Tax Act.
The attached backgrounder also describes proposed new HST rules and rates for streamlined accounting methods used by small businesses and eligible public service bodies, as well as proposed transitional rules for Ontario and British Columbia in respect of interment rights.
For simplicity, the attached documents assume that all other pending legislative proposals will have been enacted as proposed before the measures described in this release are themselves enacted.
Comments on the proposals in respect of financial institutions should be submitted by interested parties by July 31, 2010 to ConsultationsFI-IF@fin.gc.ca or to:
Tax Policy Branch
Department of Finance
140 O’Connor Street
Ottawa, Ontario
K1A 0G5
For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
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