Yesterday the Canada Revenue Agency (CRA) released a draft of the GST/HST Rebate for Pension Entities Notice (notice No. 257).
Notice 257 is a dense 53-page document, including 19 illustrative calculation examples of scenarios of varying complexity, but is focused only on the pension rebate. And it’s time for employers to take notice.
Wake-up call
General awareness on GST/HST matters relating to pension plans and other employee benefit arrangements is appallingly low—not just among plan sponsors but in the industry as well. As of yet, no pension industry advocacy or educational organizations have published any materials concerning GST/HST matters for their members, even though the new GST/HST rules and requirements are, or will be, in effect for the current fiscal year for affected plans.
Sponsors of registered pension plans governed by a trust agreement (or administered by a pension corporation) must note that new GST/HST rules now apply to their plans.
There are important things these plan sponsors need to know, decisions that must be made and actions that must be taken. It would be wise to gain some mastery of the issues, either directly or through a knowledgeable advisor now to ensure the information and assistance that may be required is timely.
Getting up to speed now will also avoid exposure to additional penalties and costs that will arise from non-compliance with assessment and reporting requirements.