The June 30, 2011 deadline for the filing of the first round of
GST/HST 494 returns is quickly approaching. Highlighted below are
some of the things pension plan trustees, pension plan sponsors and
administrators should keep in mind to assist them with their new
HST compliance obligations.
Pension entities with members in an HST province and any other
province will be considered "selected listed financial
institutions" (SLFIs) for GST/HST purposes and will be subject
to heightened compliance requirements under the draft SLFI
Pension entities that qualify as SLFIs are required to use the
calendar year as their fiscal year. As such, the fiscal year end
for many pension entities for GST/HST purposes will be December
SLFI pension entities are required to file Form GST/HST 494,
which is a final year end return, within six months of year end
(i.e., June 30) whether they are registered for GST/HST or not.
Certain pension entities will also be required to file a monthly
return where certain elections are made or if they are
Pension entities that were already registered in 2010 who were
not using the calendar year as their fiscal year are required to
file two separate GST/HST 494s if their 2010 fiscal year ends
between July 1, 2010 and December 31, 2010 – one for the
fiscal year including July 1, 2010 and one for the stub year ending
December 31, 2010.
Pension entities will be required to register if they make
certain elections (i.e., the consolidated filing election, the
reporting entity election or the tax adjustment transfer election).
Non-registrants are required to file the GST/HST 494 return
monthly, as opposed to annually if registered. Registration should
therefore be considered as it should decrease a pension
entity's compliance burden.
Retroactive registration can be done if it is discovered that a
pension entity was required or wishes to register, but hasn't,
as long as it hasn't filed any returns.
Pension entities that qualify as "qualifying small
investment plans" (QSIPs) are not required to register for
GST/HST or file returns. A pension entity will qualify as a QSIP if
it pays less than $10,000 in unrecoverable GST/HST per year on its
It is important for pension entities to stay on top of their
obligations if they are to mitigate the risk and exposure that
non-compliance with these complex rules may pose. Where needed, BLG
would be pleased to assist you in complying with these rules and
staying up to date with further developments and announcements by
the Department of Finance.
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