Indirect Tax

Module 1 will cover in more detail the complexities of the definitions of "financial service" and "financial instrument" and provide details on key-related topics, such as derivatives and swaps, zero-rated financial services, mixed supplies including financial services (sections 138 and 139) and securitizations. Particular emphasis on paragraph (q) and "arranging for" (paragraph (l)) within the definition of "financial service" will be provided. Finally, this module will address the significant changes, as announced by the Department of Finance on December 14, 2009, to the definition of “financial service”.

Module 2 will focus on the definition of "financial institution" and why it is important to determine whether a business is one for GST purposes. The discussion will cover non-traditional financial institutions and will deal with related topics, including issues pertaining to making a section 150 election and other compliance implications for financial institutions (such as the Annual Information Return for Financial Institutions).

Module 3 will then focus on matters of great significance for financial institutions relating to GST compliance, including the rules for claiming input tax credits, self-assessment requirements for imported supplies, outlays and expenses and change-in-use of capital property.

Module 4 will deal with accounting for the provincial component of HST, including the special rules applicable to "selected listed financial institutions" (“SLFIs”) and the use of the "special attribution method", excluding investment plans. The modifications to the rules as it applies to the introduction of Ontario and British Columbia as harmonized provinces effective July 1, 2010 will be addressed in detail. This module will also address the contrasting world of Quebec Sales Tax as it relates to financial services supplied in the province of Quebec.

Module 5 will cover the new SLFI rules as applied specifically to investment plans, including mutual funds and segregated funds.

Part 1 of module 6 will address the pension plan rules (deemed supplies, pension entity SLFI reporting, rebates, etc.) and input tax credits related to financial services. Part 2 of this module will focus on the implications of specific transactions to buying/selling assets and other property from a financial services perspective, including the application of special rules dealing with seizures and repossessions, settlement of insurance claims, construction bonds, holding companies/takeovers and supplies of financial services related to commercial activities.