Department of Finance Releases Legislative and Regulatory Proposals Relating to the Goods and Services Tax/Harmonized Sales Tax

July 22, 2016 – Ottawa, Ontario – Department of Finance Canada

The Government of Canada is committed to listening to Canadians on all tax-related matters. Today, the Department of Finance released draft legislative and regulatory proposals relating to the Goods and Services Tax/Harmonized Sales Tax (GST/HST) for public consultation.

These proposals include amendments to:

Revise the GST/HST rules applicable to pension plans to ensure that they apply fairly and effectively to pension plans that use master trusts or master corporations.
Improve the clarity and effectiveness of the GST/HST rules applicable to certain pension plans and financial institutions by introducing clarifications and technical improvements to those rules.
Extend the application of the GST/HST rules applicable to selected listed financial institutions to include group trusts for registered education savings plans.
Revise and modernize the GST/HST drop shipment rules to enhance the effectiveness of these rules and introduce technical improvements.
Clarify the application of the GST/HST to supplies of municipal transit services to accommodate the modern ways in which those services are provided and paid for.
Introduce housekeeping amendments to improve the accuracy and consistency of the GST/HST legislation and regulations.

The proposed amendments, as well as explanatory notes that describe the proposed amendments in detail, are included with this release. References to “Announcement Date” in the legislative and regulatory proposals and the explanatory notes refer to today’s date. Canadians are invited to provide comments on these proposals by August 31, 2016.

Today, the Department of Finance is also announcing consultations on proposed changes to the GST/HST rules applicable to certain limited partnerships and investment plans. The accompanying Consultation paper contains information on these proposals. Canadians are invited to submit their comments by November 30, 2016.

Please send your comments to fin.gsthst2016-tpstvh2016.fin@canada.ca or to:

Tax Policy Branch Department of Finance 90 Elgin Street Ottawa, Ontario K1A 0G5

Media Contacts

Annie Donolo Press Secretary Office of the Minister of Finance 613-369-5696

Media Relations Department of Finance Canada 613-369-4000