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British Columbia HST Notice No. 4, "Temporary Recapture of Input Tax Credits Requirement"

Tax Development May 14, 2010

On February 19, 2010, the British Columbia Ministry of Finance issued this notice to provide guidance on the temporary recapture of input tax credits requirement (“RITC”) for the provincial component of the HST in British Columbia that has been placed on large businesses and certain financial institutions.  This notice has now been amended to simplify the reconciliation process that was outlined within the Estimation/Installment Approach section.  Large businesses using this approach will now be required to reconcile their “Actual RITCs” for a fiscal year with the amount of input tax credits that it recaptured on its GST/HST returns for the fiscal year rather than reconciling with its “Estimated RITCs”.