Quebec recently updated LAF 94.1-1, “Waiver or Cancellation of Interest, Penalties or Charges”, which is of interest to all taxpayers, and issued new bulletin IN-261.V, “The QST and the GST/HST: How They Apply to Residential Complexes (Construction or Renovation)”, for the construction industry.
This bulletin deals with interest and penalties relating to income tax, consumption taxes, source deductions and employer contributions, but it does not apply to penalties where a person knowingly commits an act of omission. The revision was made primarily to take into account the decision rendered by the Federal Court of Appeal in Bozzer v. Canada (2011 FCA 186). The current requirement is that an application must be made within a specific time limit in order for the Minister to exercise its discretionary powers. It also discusses wash transactions and the process to be followed in making an application for the cancellation or waiver of penalties and interest.
This comprehensive guide covers several topics related to the application of sales tax on the construction and renovation of residential complexes, including self-supplies, rent-to-own agreements, the change-in-use rules and rebates. It also includes a list of other publications related to this industry and the forms required to claim a rebate.