Posted on September 18th, 2015 by Gregory M. Sawatsky in Commodity Tax (HST), Domestic Tax

Timing of Public Service Body GST/HST rebates

Many public service bodies (PSBs) are eligible to claim a GST/HST rebate on a percentage of the GST and HST paid or payable on eligible purchases and expenses.  For those PSBs resident in a participating province, they may also be eligible for a rebate on the provincial component of the HST.  For more information on what is a PSB and the rebate itself, please see Guide RC4034, GST/HST Public Service Bodies’ Rebate.

The PSB rebate is calculated and filed on a claim period by claim period basis. If a PSB is a GST/HST registrant, its claim periods are the same as the reporting periods for its GST/HST returns, that is annual, quarterly or monthly. If a PSB is not a GST/HST registrant (a non-registrant), it has two claim periods per fiscal year – the first six months and the last six months of its fiscal year. To claim the PSB rebate, a PSB must file one Form GST66, Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund , or Form GST284, Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund.

If you previously filed a PSB rebate form and found out that there is additional GST/HST you could have claimed, the CRA’s position was you could not include the missed GST/HST in your next rebate claim.  In the 2013 summer release of the GST/HST News 89, CRA confirmed that if a PSB has already claimed a rebate for a claim period and subsequently discovers additional GST/HST that was paid or payable during that same claim period, they must adjust the previously filed PSB rebate application to claim a rebate for the additional GST/HST. The PSB cannot include the additional tax in the PSB rebate application for a different claim period. There is a time limitation on filing the adjustment; a reassessment or additional assessment of a rebate claim normally would not be made more than four years after the day the application for the rebate was filed.   If you do need to make a change, you can do so by:

  • Using the CRA’s online services at My Business Account or Represent a Client;
  • Send the CRA  a letter indicating the change; or
  • By calling, the business enquires line at 1-800-959-5525.

Earlier in 2015, the CRA was mailing out letters to PSB’s explaining the proper claim period for their rebates.  If you’re a PSB and you received one of these letters, the CRA’s administrative position above will be important to ensure that your rebates are filed accurately with minimal CRA intervention.

If you have any questions about these rules or other rules pertaining to PSB’s, please contact a DJB professional to discuss this further.

About the Author

Gregory M. SawatskyPartner | MAcc, CPA, CA

As a Partner in the tax services area, Greg provides GST/HST, corporate, personal and estate tax services for the Hamilton and Halton regions.
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