Fact Sheet - HST Credit? What’s That?
Originally posted on Jun 02, 2012
Since July 2010, the Canada Revenue Agency (CRA) has adopted a new program to refund GST/HST paid by pension plan administrators on services related to the running of a registered pension plan. This program is not applicable to RRSP annuitants.
Read more about it on the CRA’s website:
· http://www.cra.gc.ca/gsthst, and look up GST/HST Notice 257, The GST/HST Rebate for Pension Entities, or call the CRA at 1-‐855-‐666-‐5166.
Under this program, a registered pension plan administrator who files a special return (RC4607) can receive a refund of 33% of all HST paid in connection with the pension plan. The new program is authorized by Section 261.01 of the Excise Tax Act.
For example, if during the course of a year, a pension plan paid $10,000 in fees, with
$1,300 in HST, the CRA will refund the plan administrator $433 (33% of $1,300).
In light of the new tax rules that penalize passive investments within CCPCs, advisors must understand how pension legislation can become a powerful tool to deal with wealth succession, business succession, and tax optimization within a corporate environment.Learn more about the ppp101 course
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