Changes Announced To GST Rules For Financial Institutions And Pension Plan Expenses

Background

On September 23, 2009, the Department of Finance released proposed legislation, draft regulations and explanatory notes relating to changes to the goods and services tax ("GST") levied under the Excise Tax Act (the "ETA"). Essentially, the GST changes relate to previously announced measures affecting GST accounting and reporting by financial institutions ("FIs") and the introduction of a new rebate mechanism for GST paid on registered pension plan expenses.

Changes to Rules for Financial Institutions

1. General

The changes to the GST rules applicable to FIs involve the following:

• Self-assessment of GST on certain imported taxable supplies;
• Imposition of an extended assessment period for imported taxable supplies;