ARTICLE · 14 JULY 2015

RITC Requirements For Large Businesses

MNP LLP

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Effective July 01, 2015, this date marks the beginning in the gradual reduction in Recaptured Input Tax Credits (RITC) requirements for large business with annual sales greater than $10 million...

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Effective July 01, 2015, this date marks the beginning in the gradual reduction in Recaptured Input Tax Credits (RITC) requirements for large business with annual sales greater than $10 million (for them and all associated persons of taxable and zero-rated sales). This means that clients considered to be a "Large Business" by the CRA, will only be required to restrict the provincial portion of the Input Tax Credit (ITC) they claim on specified property by 75% in Ontario. The 75% Ontario ITC recapture rate will take effect July 1, 2015 to June 30, 2016.

As a reminder, expenses that are considered specified property or services and must be restricted:

mileage allowances, leases, purchase or rentals of cars and light trucks (<3000kg) including certain vehicle parts and services and gasoline fuel

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