RC 4616 GST/HST Closely Related Election
Following up on a previous blog post: http://djb.com/2014/06/gsthst-election-for-closely-related-corporations-and-canadian-partnerships/, corporations and partnerships that are part of a closely related group (as defined in the Excise Tax Act), need to ensure they file the required election forms with the CRA and Revenue Quebec by no later than December 31, 2015. The previous version of the form, GST25 was not required to be filed with the CRA. Starting in 2015, the new form RC4616 is required to be filed with the CRA to allow various taxable activities between closely related persons to not have to charge GST/HST. Prior to filing, if your corporate group has gone through a restructuring, it is prudent to review the rules to ensure that your corporate group still qualifies for the election.
Changes affecting the filing of your GST/HST return
In CRA’s continued quest for efficiency and to reduce red-tape, beginning October 19, 2015, the Canada Revenue Agency (CRA) started providing all GST/HST registrants with a new and unique access code on their GST34-2 return. As of the same date, registrants will now be able to change their access code to one of their own choice by going to: http://www.cra-arc.gc.ca/gsthst-accesscode/. This access code can then be used to file all future returns online. To change your access code, you will need to enter your business number and your choice of the following information from a previously filed return:
- the reporting period and line 109 (net tax) where the amount on line 109 is not $0.00; or,
- the reporting period and confirmation number from a return filed using GST/HST NETFILE, TELEFILE, or Internet File Transfer.
Article written by: Greg Sawatsky, MAcc, CPA, CA