News and Insights

CRA Updates Guides for Public Service Bodies’ Rebate and Charities

Tax Development Oct 04, 2016

The CRA has updated guides RC4034, “GST/HST Public Service Bodies’ Rebate”, and RC4082, “GST/HST Information for Charities”, to include the rebate available for municipalities resident in Newfoundland and Labrador. Effective January 1, 2016, the rebate is 25% of the provincial portion of the HST, with an increase to 57.14% scheduled to take effect on January 1, 2017. The guides were also updated to account for the New Brunswick and Newfoundland and Labrador HST rate increases to 15%, effective July 1, 2016, as well as the Prince Edward Island HST increase to the same rate, effective October 1, 2016.

In addition, RC4082 was updated to reflect how GST/HST only applies to the value of the property or services supplied in exchange for a donation, provided that an income tax receipt may be issued for a part of the donation under the “split-receipting” rules for charities, effective March 23, 2016. RC4082 also clarified how cosmetic procedures are generally taxable when supplied by a charity.