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Financial Institution GST/HST Annual Information Return

From: Canada Revenue Agency

RC4419(E) Rev. 23

The CRA's publications and personalized correspondence are available in braille, large print, e-text, or MP3 for those who have a visual impairment. For more information, go to Order alternate formats for persons with disabilities or call 1-800-959-5525.

Unless otherwise stated, all legislative references are to the Excise Tax Act (ETA) or, where appropriate, the GST/HST Regulations.

This guide uses plain language to explain the most common tax situations. It does not replace the law.

La version française de ce guide est intitulée Déclaration annuelle de renseignements de la TPS/TVH pour les institutions financières.

Table of contents

Find out if this guide is for you

Use this guide to fill out Form GST111, Financial Institution GST/HST Annual Information Return, if you are any of the following:

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 a selected listed financial institution (SLFI) for GST/HST or Quebec sales tax (QST) purposes or both. For more information, see the Revenu Québec publication IN-203-V, General Information Concerning the QST and the GST/HST.

Do not use this guide if you are an SLFI for GST/HST or QST purposes or both and you are a registrant for QST purposes. Instead, see Guide RC7219, GST/HST and QST Annual Information Return for Selected Listed Financial Institutions, and use Form RC7291, GST/HST and QST Annual Information Return for Selected Listed Financial Institutions. For more information, go to GST/HST and QST information for financial institutions, including selected listed financial institutions.

What's new

Major changes are listed below.

This guide contains information based on the ETA and its related regulations and proposed changes to the ETA announced on August 9, 2022. At the time of publication, these changes were proposed and not law. The publication of this guide should not be taken as a statement by the Canada Revenue Agency (CRA) that these changes will in fact become law in their current form.

Change to threshold amount

A financial institution that is a registrant and has annual income of over $1 million will generally be required to file Form GST111 in addition to its regular GST/HST return. Under proposed changes, the $1 million income threshold amount would be increased to $2 million for fiscal years of a person ending after August 9, 2022.

Credit unions

Under proposed changes, the credit union definition in the Income Tax Act (ITA) would be amended to eliminate the revenue test from the definition of "credit union" to accommodate how credit unions currently operate. The amendments would be deemed to have come into force on January 1, 2016. These proposed changes, if they become law, would affect the definition of "credit union" for GST/HST purposes as it is based on the definition of the term for ITA purposes.

Overview

Financial institutions often provide a wide range of services. In addition to tax-exempt financial services, a significant number also engage in taxable activities, both in Canada and internationally. A financial institution that is a registrant must generally file Form GST34-2, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return for Registrants, and in some cases must file Form GST494, GST/HST Final Return for Selected Listed Financial Institutions.

To provide the information summarized on Form GST34-2 or Form GST494, financial institutions have to do a variety of calculations. One of the purposes of Form GST111, Financial Institution GST/HST Annual Information Return, is to record the results of this analysis. This guide gives line-by-line instructions on how to fill out Form GST111.

The HST rate can vary from one participating province to another. For the list of all applicable GST/HST rates, go to GST/HST calculator (and rates).

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), are carried on in that area.

Who has to file?

A reporting institution has to file Form GST111, Financial Institution GST/HST Annual Information Return.

Reporting institution means a person, other than a prescribed person or a person of a prescribed class, that meets all of the following conditions:

$2 million × A/365
(where A equals the number of days in the tax year)

A person would be a prescribed person and therefore not a reporting institution and not be required to fill out Form GST111 if the person is a selected listed financial institution (SLFI) that is either of the following:

At this time, there are no other prescribed persons or persons of a prescribed class.

Registrant means a person that is registered or required to be registered for the GST/HST.

Note

Where a financial institution is a reporting institution for a particular fiscal year but is only a registrant for part of the particular fiscal year, it is still required to file Form GST111 and provide information related to that entire fiscal year and not just for the period where the financial institution is a registrant.

Fiscal year means the tax year of the person, or where a person has elected to change their fiscal year, the period that the person elected to be their fiscal year. Where the person is an SLFI and either an investment plan or a segregated fund of an insurer, it generally means a calendar year.

Tax year of a person means:

Listed financial institution

You are a listed financial institution throughout your tax year if at any time in the particular year, you are a person referred to in any of subparagraphs 149(1)(a)(i) through (xi).

Examples of listed financial institutions include:

For more information, see GST/HST Memorandum 17-6, Definition of "Listed Financial Institution."

Selected listed financial institution

You are generally considered to be an SLFI for GST/HST purposes under subsection 225.2(1) throughout a reporting period in a fiscal year that ends in your tax year if you are a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) at any time in your tax year and you meet one of the following conditions:

A corporation that is a listed financial institution only because it has an election in effect under section 150 to have certain taxable supplies deemed to be financial services cannot be an SLFI.

For more information, see GST/HST Memorandum 17-6-1, Definition of "Selected Listed Financial Institution."

De minimis financial institution

You are considered to be a de minimis financial institution if you meet the criteria in paragraphs 149(1)(b) or 149(1)(c).

For more information, see GST/HST Memorandum 17-7, De Minimis Financial Institutions.

Paragraph 149(1)(b)

Under paragraph 149(1)(b), you are generally considered to be a financial institution throughout your tax year if your financial revenue in your immediately preceding tax year is more than 10% of your total revenues (other than certain revenue, including revenue from sales of capital property) in that year and is more than $10 million.

Financial revenue generally includes interest, dividends, or a separate fee or charge for a financial service that is included in computing the person's income for purposes of the ITA. However, it does not include interest or dividends from a related corporation, a dividend in kind or a patronage dividend, or a separate fee for a zero-rated supply of a precious metal.

For example, a holding company may be considered a financial institution if it earns financial revenues, such as dividends, from an unrelated corporation for its previous tax year to the extent that it meets the thresholds mentioned above.

Paragraph 149(1)(c)

Under paragraph 149(1)(c), you are generally considered to be a financial institution throughout your tax year if your income for the purposes of the ITA from interest or separate fees related to credit or charge cards you issue, or related to loans, advances, or credit you grant, was more than $1 million in your immediately preceding tax year.

For the purposes of this de minimis test, penalties levied by a vendor for late payment of an account receivable generated in the normal course of the vendor's business would not be considered to be a fee for the provision of credit.

Interest from a related corporation is not included in this total.

In addition, interest from certain deposits of money held by certain entities (for example, a bank or a credit union) in the usual course of the deposit taking activity of that entity (where the entity is required to pay the money in 364 days or less) is excluded when determining whether a person exceeds the $1 million de minimis threshold.

Filing instructions

You must file Form GST111 once per fiscal year, within six months of the end of your fiscal year.

Note

In certain situations, a person may have a shorter than normal fiscal year. If the person is a reporting institution for that fiscal year, a GST111 return must be filed for that fiscal year.

To file Form GST111, send your form to the same tax centre to which you file your GST/HST returns. Addresses are listed on the last page of the form.

The following sections contain detailed explanations of the information that you have to enter on each line of Form GST111.

Where applicable, you should report worldwide amounts on this form. For example, a non-resident financial institution would report worldwide amounts and not just amounts related to its Canadian branch when filling out this form.

Enter "0" if the amount for a line on Form GST111 is nil or the line does not apply to you. Do not leave any lines blank.

Estimated amounts

You may enter a reasonable estimate of an amount for certain lines, where indicated, where the amount is not reasonably ascertainable. This guide contains information about the lines you may be able to fill out using estimates.

If the amount you enter on a line is an estimated amount, you have to tick the grey box beside the line number.

Penalties

In addition to any other penalty that may apply, every reporting institution that fails to report an amount when and as required, or that misreports such an amount in Form GST111, will be liable for penalties. Penalties may also apply if a reporting institution fails to provide reasonable estimates when and as required of certain amounts for which estimates can be provided. Penalties for non-compliance will accumulate and can be as much as $1,000 for each failure (in other words, for each line mentioned below under the first and second penalty) unless due diligence was exercised in attempting to correctly report that amount.

A penalty under subsection 284.1(1) may apply to amounts required to be reported on the following lines:

This penalty is equal to the lesser of $1,000 and 1% of the absolute value of the difference between the actual amount and:

Note

The term “actual amount” is defined in subsection 273.2(1). In general terms, actual amount means any amount that is required to be reported on Form GST111 for a fiscal year that is either of the following:

  • A tax amount for the fiscal year or a previous fiscal year of the person
  • An amount calculated using only tax amounts for the fiscal year or a previous fiscal year, unless all of those tax amounts are required to be reported on Form GST111

The term “tax amount” is also defined in subsection 273.2(1).

In addition, a second penalty, under subsection 284.1(2), may apply to amounts required to be reported on the following lines:

This penalty is equal to the lesser of $1,000 and 1% of the total of all amounts that:

Part A – Information on the financial institution

Enter the identification information requested, such as:

Each year that you fill out Form GST111, you have to answer questions to provide information about your financial institution.

If you are a de minimis financial institution and not a listed financial institution, you have to indicate whether you are a de minimis financial institution under paragraph 149(1)(b) or (c) or both paragraphs. In addition, you have to indicate your significant financial activities.

If you are a listed financial institution only because you have made an election under section 150 or you are a de minimis financial institution, you must indicate the first two digits of your North American Industry Classification System (NAICS) code.

Part B – Supplies

GST/HST collected or collectible

Line 0500

Enter the total amount of GST/HST collected or collectible during the fiscal year. For example, this amount would include the GST/HST that you are deemed to have collected and the GST/HST you are required to collect on any taxable sale of real property or capital assets.

This amount should equal the total of all amounts you have entered on line 103 of your GST/HST return(s) for the fiscal year.

Supplies of financial services

The term financial service is defined in subsection 123(1) and includes a broad range of transactions related to financial instruments and money.

Supplies of financial services are exempt under Part VII of Schedule V unless they are zero-rated (GST/HST taxable at the rate of 0%). See the explanation for line 0610 for information on supplies of financial services that are zero-rated.

Line 0600N

Enter the total amount of exempt supplies of financial services made during the fiscal year.

You should base this amount on revenues reported for income tax purposes that are attributable to your exempt supplies of financial services.

A supply deemed under section 150 to be a supply of a financial service is exempt under Part VII of Schedule V and should be excluded from line 0600N.

Election under section 150

Subject to certain exceptions, section 150 permits two corporations that are members of a closely related group that includes a listed financial institution to make a joint election to deem every taxable supply between them of property by way of lease, licence, or similar arrangement, or of a service that is made while the election is in effect, to be a supply of a financial service.

A corporation that has this election in effect would have filed Form GST27, Election or Revocation of an Election to Deem Certain Supplies to be Financial Services for GST/HST Purposes.

For more information, see GST/HST Memorandum 17-14, Election for Exempt Supplies.

Line 8520

Enter the total value of supplies you made during the fiscal year that are deemed by the election under section 150 to be supplies of financial services.

Line 0610

Enter the total amount of zero-rated supplies of financial services made during the fiscal year.

You should base this amount on revenues reported for income tax purposes that are attributable to your zero-rated supplies of financial services. Supplies of financial services may be zero-rated under sections 1, 2, or 3 of Part IX of Schedule VI.

Supplies of financial services that may be zero-rated include:

Example 1

You are a financial institution and you supply a financial service of granting a mortgage loan to a non-resident person to buy a house in Seattle, Washington (USA). Your supply of this financial service is zero-rated.

Example 2

You are an insurer and you supply a financial service related to an insurance policy you issued for real property situated in Chicago, Illinois (USA). Your supply of this financial service is zero-rated.

For more information, see GST/HST Memorandum 17-2, Products and Services of a Deposit-Taking Financial Institution.

Supplies other than financial services

Line 0700

Enter the total amount of zero-rated supplies, other than financial services, made during the fiscal year. Do not include provincial sales tax.

Supplies other than financial services may be zero-rated under any Part of Schedule VI, other than Part IX of Schedule VI which applies only to financial services. For example, exports of certain property or services may be zero-rated under Part V of Schedule VI.

Example

An insurance agent supplies to a non-resident individual an advisory service of assisting the individual with estate planning with respect to certain financial assets held by the individual in Canada. The advice does not relate to any real property or tangible personal property situated in Canada. The supply of this service is zero-rated as an export under Part V of Schedule VI.

For more information, see GST/HST Memorandum 4-5-2, Exports – Tangible Personal Property, and GST/HST Memorandum 4-5-3, Exports – Services and Intellectual Property.

Line 0710

Enter the total amount of exempt supplies, other than financial services, made during the fiscal year. Do not include provincial sales tax.

Supplies other than financial services may be exempt under any Part of Schedule V, other than Part VII of Schedule V which applies only to financial services.

Lines 0720 to 0740

Enter on line 0740 the total amount of taxable supplies subject to the GST/HST (other than zero-rated supplies) made during the fiscal year. Do not include the GST/HST or provincial sales tax.

Provide a breakdown of your total amount of taxable supplies on line 0740 as explained below:

You may enter estimates on lines 0720 or 0730 if these amounts are not reasonably ascertainable. However, the total of these two lines must equal the amount entered on line 0740.

Part C – Purchases

GST and federal part of the HST paid or payable

Line 1500

Enter the total amount of GST and the federal part of the HST that became payable or was paid without becoming payable by you during the fiscal year including amounts of deemed tax or self-assessed tax. This amount includes all GST and the federal part of the HST paid or payable under Divisions II, III, and IV of Part IX of the ETA.

Provincial part of the HST paid or payable

Line 1505

Enter the total amount of the provincial part of the HST that became payable or was paid without becoming payable by you during the fiscal year, including amounts of deemed tax or self-assessed tax. This amount includes all the provincial parts of the HST paid or payable under Divisions II, III, IV, and IV.1 of Part IX of the ETA.

Purchases of financial services

Line 1600N

Enter the total amount of exempt and zero-rated financial services you acquired during the fiscal year. You should base this amount on costs reported for income tax purposes that are attributable to your purchases of exempt and zero-rated supplies of financial services.

A purchase of a supply deemed under section 150 to be a supply of a financial service should be excluded from line 1600N. See Line 0600N for more information on an election under section 150.

Line 8620

Enter the total value of supplies you received during the fiscal year that are deemed by the election under section 150 to be supplies of financial services.

Purchases subject to GST/HST

Line 1720

Enter the total amount of taxable purchases, including property acquired by way of lease, you made during the fiscal year, that were subject to GST/HST (other than purchases of zero-rated supplies). For example, enter your purchases of capital property and office supplies. If you are an insurer, this amount would include taxable purchases 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. Do not include GST/HST or any provincial sales tax.

Part D – Imports and property and services brought into a participating province

The GST/HST applies not only to domestic purchases but also to certain imports of goods into Canada, to imported taxable supplies, and to property and services brought into a participating province.

Goods imported into a participating province from outside Canada are generally subject to the GST/HST unless identified in Schedule VII as non-taxable for GST/HST purposes.

Certain recipients of supplies of services and intangible personal property acquired for use in a participating province have to self assess the tax, including on imported taxable supplies, and supplies that are included in Division IV.1 of Part IX of the ETA.

Imported taxable supply is defined in section 217 and includes, for example, taxable supplies (other than certain zero-rated supplies or prescribed supplies) of services and intangible personal property made outside Canada to a person who is resident in Canada, unless certain exclusions apply. One such exclusion is a supply of a service that is acquired for consumption, use, or supply, exclusively (in other words, 100% for a financial institution) in the course of commercial activities of the person, or activities that are engaged in exclusively outside Canada by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Canada.

Division IV.1 sets out self-assessment rules that in some circumstances require a person to report and pay the provincial part of the HST where property and services are brought into a participating province for consumption, use or supply in a participating province after having been supplied in a province with a lower provincial rate (if the province in which the supply is made is a non-participating province, the provincial rate is equal to 0%), or where taxable goods are imported from outside of Canada into a participating province with a provincial rate that is higher than the provincial rate that was payable in respect of the importation of the property.

There are several exceptions to the requirement to self-assess the provincial part of the HST in respect of property or services that are brought into a participating province. A significant exception generally applies where the property or service is brought into a participating province by a registrant for consumption, use or supply exclusively (100% for financial institutions) in the course of commercial activities of the registrant. In addition, there is an exception under section 220.04 that generally applies when a person is a selected listed financial institution.

For more information on self‑assessment under Division IV.1, see Notice 266 – For discussion purposes only – Draft GST/HST Technical Information Bulletin, Harmonized Sales Tax – Self-assessment of the provincial part of HST in respect of property and services brought into a participating province.

In addition to self-assessing on imports, imported taxable supplies and property and services brought into a participating province, a financial institution that is also a qualifying taxpayer is required to self-assess under section 218.01 and subsection 218.1(1.2) (if applicable) for a specified year on the total of all amounts of qualifying consideration, or where an election under subsection 217.2(1) is in effect, on the total of internal and external charges.

For more information, see GST/HST Technical Information Bulletin B-095, The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules).

Specified year of a person for the purposes of Division IV means:

For more information, see the definitions of “fiscal year” and “tax year” in Who has to file?

Tax on imports and on property and services brought into a participating province

Line 2400

Enter the total amount of GST and the federal part of the HST that became payable or that was paid without becoming payable for imported goods under section 212.

Section 212 requires every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, to also pay tax at the rate of 5% on the excise and duty-paid value of the goods.

Exception

No tax is payable on imports of goods included in Schedule VII. For example, goods you import that are supplied by a non-resident for no consideration, other than shipping and handling charges, as replacement property under a warranty are not subject to tax.

Line 2410

Enter the total amount of GST and the federal part of the HST that became payable or that was paid without becoming payable for imported taxable supplies under section 218.

Section 218 requires every recipient of an imported taxable supply to pay tax at the rate of 5% on the value of the consideration for the supply. As a GST/HST registrant, you should use your regular GST/HST return to self assess the tax.

Example

You are a financial institution that is a GST/HST registrant and you are resident in Canada. You hired a non-registered non-resident company to provide taxable services that relate to your tax-exempt activities in Canada. You have to self-assess tax on the value of the services by using line 405 of your GST/HST return.

Line 2420

Enter the total amount of GST and the federal part of the HST that became payable on qualifying consideration under paragraph 218.01(b). This amount should be the amount of the GST that you self-assessed on all amounts of qualifying consideration for the specified year and included on line 405 of your GST/HST return(s). The term "qualifying consideration" is defined in section 217.

For more information, see GST/HST Technical Information Bulletin B-095, The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules).

Line 2430

Enter the total amount of the provincial part of the HST that became payable or that was paid without becoming payable on certain imported goods under section 212.1.

Section 212.1 generally requires every person who is a resident in a participating province and is liable under the Customs Act to pay duty on imported goods, or who would be liable if the goods were subject to duty, to also pay the provincial part of the HST on the excise and duty-paid value of the goods. Certain taxable goods are not subject to the provincial part of the HST upon importation including goods that are accounted for as commercial goods. "Commercial goods" are goods that are imported for sale or for any commercial, industrial, occupational, institutional or other like use.

Line 2440

Enter the total amount of the provincial part of the HST that became payable or that was paid without becoming payable on certain taxable imported goods brought into a participating province under section 220.07.

For example, you may have to self-assess the provincial part of the HST if you bring commercial goods from a place outside Canada into a participating province.

This payment is in addition to the tax imposed by section 212.

Example

You are a Canadian corporation that is a de minimis financial institution. You bring taxable commercial goods into New Brunswick from a place outside Canada. Since New Brunswick is a participating province, section 220.07 generally requires the corporation to pay, in addition to the tax imposed under section 212, the provincial part of the HST at the tax rate applicable to the particular participating province.

Line 2450

Enter the total amount of the provincial part of the HST that became payable or that was paid without becoming payable for imported taxable supplies under subsection 218.1(1).

Line 2460

Enter the total amount of the provincial part of the HST that became payable on qualifying consideration under paragraph 218.1(1.2)(b).

Line 2470

Enter the total of any other amounts of the provincial part of the HST you had to self-assess for property and services brought into a participating province. This would include the provincial part of the HST self-assessed under Division IV.1 other than under section 220.07, which is reported on line 2440.

Line 2480

Enter the total amount of GST and the federal part of the HST, that became payable or was paid without becoming payable for all internal charges under paragraph 218.01(a).

Internal charge

Internal charge for a specified year is generally any part of an amount in respect of a transaction between a qualifying establishment of a qualifying taxpayer in Canada and another qualifying establishment of the same qualifying taxpayer in another country that meets certain criteria.

For more information, see GST/HST Technical Information Bulletin B-095, The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules).

Line 2481

Enter the total amount of GST and the federal part of the HST that became payable or was paid without becoming payable for all external charges under paragraph 218.01(a).

External charge

External charge for a specified year of a qualifying taxpayer is generally an amount in respect of an outlay or expense described in any of paragraphs 217.1(2)(a) to (c) that meets certain criteria.

For more information, see GST/HST Technical Information Bulletin B-095, The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules).

Line 2482

Enter the total amount of the provincial part of the HST that became payable or was paid without becoming payable for all internal charges under paragraph 218.1(1.2)(a).

Line 2483

Enter the total amount of the provincial part of the HST that became payable or was paid without becoming payable for all external charges under paragraph 218.1(1.2)(a).

Part E – Input tax credits (ITCs)

As a GST/HST registrant, you may be eligible to claim ITCs to recover the GST/HST payable, or paid without becoming payable, on inputs (property and services) you acquire to make taxable supplies for consideration. In general, you cannot claim ITCs to recover the GST/HST paid on inputs you acquire to make exempt supplies.

Lines 4500 to 4700

The ITCs you claim for a fiscal year may include amounts of the GST/HST that became payable or that were paid without becoming payable in a previous fiscal year.

Enter on line 4500 the total amount of ITCs you claimed in the fiscal year for the GST/HST that became payable or that was paid without becoming payable during the fiscal year.

Enter on line 4600 the amount of ITCs you claimed in the fiscal year that relate to previous fiscal years.

Add lines 4500 and 4600, and enter the total on line 4700. This amount should equal the total of all ITC amounts you reported on line 106 of your GST/HST returns for the fiscal year.

Notes

You must fill out Part F – ITC allocation methods used during the fiscal year to support the amount reported on line 4700.

An amount on lines 4500 to 4700 should not be reduced by the amount of any recaptured input tax credits (RITCs) related to the provincial part of the HST.

Part F – ITC allocation methods used during the fiscal year

You must enter an amount on each line in Part F if you have claimed any ITCs in the fiscal year. Report the ITCs you claimed for each type of input according to the ITC allocation method you used for that input.

In general, when you acquire property or a service for consumption or use exclusively (100%) for the purpose of making taxable supplies for consideration, you can claim a full (100%) ITC for the GST/HST you paid to acquire the input. In determining an ITC for a financial institution, consideration does not include nominal consideration. If you acquire an input both for the purpose of making taxable supplies for consideration and for other purposes, you have to determine the extent it is acquired for each purpose to determine the percentage of the GST/HST paid on the input that can be recovered as an ITC.

For more information on the detailed ITC allocation rules for financial institutions, see the following GST/HST Memoranda:

The specific ITC allocation rules for financial institutions found in section 141.02 apply in determining the operative and procurative extent of an input. The application of these rules depends on the type of the input, and whether or not the person is a qualifying institution. Generally, a financial institution should categorize each input according to whether it is an exclusive input, excluded input, direct input or non-attributable input and apply a particular ITC allocation method to that input.

An amount in Part F should not be reduced by the amount of any RITCs related to the provincial part of the HST.

Exclusive inputs

An exclusive input is property or a service (other than an excluded input) that you acquired, imported, or brought into a participating province for your consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively other than for the purpose of making taxable supplies for consideration.

Excluded inputs (capital real property and capital personal property)

An excluded input is either of the following:

Direct inputs

A direct input is property or a service, other than:

Generally, a direct input is a property or a service that:

Non-attributable inputs

A non-attributable input is property or a service that is:

Qualifying institution

In general terms, for the purposes of the ITC allocation rules for financial institutions, a qualifying institution for a particular fiscal year is a financial institution that meets all of the following requirements in the fiscal year:

For more information, see GST/HST Memorandum 17-11, Determining Whether a Financial Institution is a Qualifying Institution for Purposes of Section 141.02.

Bank

Bank, for a fiscal year, means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act, but does not include an insurer.

Insurer

Insurer, for a fiscal year, means a person who is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an insurance business or under the laws of another jurisdiction to carry on in that other jurisdiction an insurance business, and, who at any time in the fiscal year, carries on an insurance business as its principal business in Canada.

Securities dealer

Securities dealer, for a fiscal year, means a person who meets all of the following conditions:

Operative extent of property or a service

The operative extent of property or a service is the extent to which the consumption or use of the property or service by a person is for the purpose of making taxable supplies for consideration or for purposes other than making taxable supplies for consideration.

Procurative extent of property or a service

The procurative extent of property or a service is the extent to which the property or service is acquired, imported, or brought into a participating province by a person for the purpose of making taxable supplies for consideration or for purposes other than making taxable supplies for consideration.

Full (100%) ITC recovery

Lines 6200 to 6230

Enter on lines 6200 to 6230 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you were entitled to a full recovery of the GST/HST that became payable or was paid without becoming payable. Categorize this information based on the type of input.

Notes

An amount entered on any of lines 6200 to 6230 should not be entered on any other line, even if it was calculated using a pre-approved method, specified method, or other method.

An amount should not be reported on line 6200 that is for exclusive inputs where the amount of the ITC is subject to any restriction or subsequent adjustment such as an ITC with respect to meals and entertainment expenses. This amount should be reported on line 6400 or 6700.

Prescribed percentage method

Lines 6340 and 6350

The extent to which a residual input (direct input or non-attributable input) of the financial institution is acquired, imported, or brought into a participating province or consumed or used for the purpose of making taxable supplies for consideration is deemed to be the prescribed percentage for the prescribed class of financial institution (in other words, 12% for banks, 10% for insurers, and 15% for securities dealers) where the person is either of the following:

Enter on lines 6340 and 6350 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you determined your recovery of the GST/HST that became payable or was paid without becoming payable using the prescribed percentage method.

Categorize this information based on the type of your residual input(s). That is, you must enter separately the ITC amounts for direct inputs and the ITC amounts for non-attributable inputs.

Pre-approved methods

Lines 6400 to 6450

A person that is a qualifying institution for a fiscal year can apply for authorization to use its own ITC allocation methods for the fiscal year.

For more information, see the following GST/HST Memoranda:

Line 6400

Enter on line 6400 the total amount of eligible ITCs, if any, you claimed during the fiscal year for exclusive inputs where you have used a pre-approved method and the amount of the ITC is subject to any restrictions or subsequent adjustments (for example, an ITC with respect to meals and entertainment expenses).

Lines 6410 to 6450

Enter on lines 6410 to 6450 the total amount of eligible ITCs, if any, you claimed during the fiscal year using pre-approved methods. Categorize this information based on the type of input.

Exception

Do not include any amount related to an ITC for an excluded input for which you were entitled to claim a full ITC, even if it was calculated using a pre-approved method. These amounts should be included on lines 6210 to 6230.

Direct attribution methods

A direct attribution method is a method that conforms to criteria, rules, terms, and conditions specified by the Minister of National Revenue, and that is the most direct manner of determining the operative extent and procurative extent of property or a service. These criteria, rules, terms, and conditions are specified in GST/HST Memorandum 17-12, Input Tax Credit Allocation Methods for Financial Institutions for Purposes of Section 141.02.

Line 6540

Enter on line 6540 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you determined your recovery of the GST/HST payable or paid without having become payable on direct inputs using a direct attribution method.

Specified methods

A specified method is a method that conforms to criteria, rules, terms, and conditions specified by the Minister of National Revenue and that is used to determine the operative extent and the procurative extent of property or a service. These criteria, rules, terms, and conditions are specified in GST/HST Memorandum 17-12, Input Tax Credit Allocation Methods for Financial Institutions for Purposes of Section 141.02.

Lines 6610 to 6650

Enter on lines 6610 to 6650 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you determined your recovery of the GST/HST payable or paid without having become payable using a specified method. Categorize this information based on the type of input.

Exception

Do not include any amount related to an ITC for an excluded input for which you were entitled to claim a full ITC, even if it was calculated using a specified method. These amounts should be included on lines 6210 to 6230.

Other methods

Line 6700

Enter in line 6700 the total amount of eligible ITCs, if any, you claimed during the fiscal year for exclusive inputs where the amount of the ITC is subject to any restrictions or subsequent adjustments (such as an ITC with respect to meals and entertainment expenses), unless this amount has been reported on line 6400.

Lines 6710 to 6750

Enter on lines 6710 to 6750 the total amount of eligible ITCs, if any, you claimed during the fiscal year which has not already been included in lines 6210 to 6650 (other than 6400). Categorize this information based on the type of input.

Also provide a brief description of the other methods you used in the space directly below the chart.

Totals

Lines 6800 to 6850

Enter on lines 6800 to 6850 the total from each column.

The totals from lines 6800 to 6850 in this part should equal the amount reported on line 4700 of Part E.

Have any of the ITC allocation methods changed from the previous year?

Indicate whether any allocation methods have changed from a previous year by ticking the appropriate box under the chart in Part F. Where an allocation method has changed, briefly explain why you changed the method.

Part G – Certification

Every filer must fill out this part. You have to sign and date the information return.

Note

There are serious consequences associated with the failure to properly report information on Form GST111, Financial Institution GST/HST Annual Information Return.

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, the CRA may ask you to keep them longer than six years.

If you want to destroy your records before the time limit expires, you have to send a written request to the CRA and wait for a written approval to do so. CRA auditors may ask to see your records.

How to change a return

If you need to make a change to a return you have sent in, you can send a letter to your tax centre, including your business number, the fiscal year of the Form GST111 to be amended, and the corrected amounts per line number on your Form GST111. Make sure an authorized representative signs the letter and includes the name and telephone number of a person the CRA can contact if needed.

If you prefer, you can file a new Form GST111, instead of sending a letter, and write the word "AMENDED" at the top of the return. The amended Form GST111 should contain all the correct information that was reported on the original Form GST111 as well as any amended/revised information and/or amounts and be sent to your tax centre. In addition, the amended Form GST111 should be the same version as the original Form GST111.

Digital services

Handle your business taxes online

My Business Account lets you view and manage your business taxes online.

Use My Business Account throughout the year to:

To sign in to or register for the CRA's digital services, go to:

For more information, go to Digital services for businesses.

Receive your CRA mail online

Register for email notifications to find out when your CRA mail, like your notice of assessment, is available in My Business Account.

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

Create a pre-authorized debit agreement from your Canadian chequing account

A pre-authorized debit (PAD) is a secure online self-service payment option for individuals and businesses to pay their taxes. A PAD lets you authorize withdrawals from your Canadian chequing account to pay the CRA. You can set the payment dates and amounts of your PAD agreement using the CRA's secure My Business Account service. PADs are flexible and managed by you. You can use My Business Account to view your account history and modify, cancel, or skip a payment. For more information, go to Pay by pre-authorized debit.

For more information

If you need help

If you need more information after reading this guide, go to GST/HST for businesses or call 1-800-959-8287.

Direct deposit

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

Forms and publications

The CRA encourages you to file your return electronically. If you need a paper version of the CRA's forms and publications, go to Forms and publications or call 1-800-959-5525.

Electronic mailing lists

The CRA can send you an email when new information on a subject of interest to you is available on the website. To subscribe to the electronic mailing lists, go to Canada Revenue Agency electronic mailing lists.

Teletypewriter (TTY) users

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

If you use an operator-assisted relay service, call the CRA's 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 GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, or call 1-800-959-8287.

Formal disputes (objections and appeals)

You have the right to register a formal dispute if you disagree with an assessment, determination, or decision.

For more information about objections and related deadlines, go to File an objection.

CRA service feedback program

Service 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. For more information, go to Taxpayer Bill of Rights.

You may provide compliments or suggestions, and if you are not satisfied with the service you received:

  1. Try to resolve the matter with the employee you have been dealing with or call the telephone number provided in the correspondence you received from the CRA. If you do not have contact information for the CRA, go to Contact the Canada Revenue Agency.
  2. If you have not been able to resolve your service-related issue, you can ask to discuss the matter with the employee's supervisor.
  3. If the problem is still not resolved, you can file a service-related complaint by filling out Form RC193, Service Feedback. For more information and to learn how to file a complaint, go to Submit service feedback.

If you are not satisfied with how the CRA has handled your service-related complaint, you can submit a complaint to the Office of the Taxpayers' Ombudsperson.

Reprisal complaints

If you have received a response regarding a previously submitted service complaint or a formal review of a CRA decision and feel 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, go to Objections, appeals, disputes, and relief measures.

Cancel or waive penalties and interest

The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA discretion to cancel or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.

The CRA’s discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to a penalty for a tax year or fiscal period ending in 2013 or later.

For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to interest that accrued in 2013 or later.

Taxpayer relief requests can be made online using the CRA's My Account, My Business Account (MyBA), or Represent a Client digital services:

You can also fill out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest, and send it by one of the following ways:

For information on the "Submit documents online" service, go to Submit documents online.

For more details on the required supporting documents, relief from penalties or interest, and other related forms and publications, go to Cancel or waive penalties and interest at the CRA.

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