We recently attended the 35th Annual Commodity Tax Symposium 2015, as well as a recent CPA Ontario GST/HST update course, whereby a number of professionals discussed the current ‘hot topics’ when it comes to audits and other CRA activity. Below is a summary of the issues that are currently at the forefront:
- Denied input tax credit (ITC) claims due to the wrong entity claiming
- Principal and Agent ITC eligibility
- Improper or incomplete documentation
- Improper calculation of cost recoveries and cost sharing arrangements
- Ineligible ITC claims (motor vehicles, meals and entertainment, etc.)
- 167 elections and the applicability of the GST44 Election Concerning the Acquisition of a Business or Part of a Business
- General partners and the reporting of the GST/HST for the partnership
- Bare trustees and joint venture elections
- Services to non-residents
- Sale of real property to GST/HST registrant and real property fair market value audits
As you will notice from our prior blog postings on this topic over the past two years, the majority of the issues are the same. From our observations over the pat year, this continues to show that businesses are still making errors on these common issues. Based on our experience, we have developed a GST/HST questionnaire that is meant to help businesses identify risk areas in their commodity tax. It is our first step in helping your business properly structure your GST/HST reporting.
If you believe your company has some exposure in any of these areas, or other areas of the GST/HST, please contact your DJB professional to discuss your commodity tax issues further.
Article written by: Greg Sawatsky, MAcc, CPA, CA