News and Insights

CRA Updates Public Service Bodies’ Guides

Tax Development Jan 18, 2016

The Canada Revenue Agency (“CRA”) has issued the latest version of a few of their guides on public service bodies, including RC4081, “GST/HST Information for Non-Profit Organizations”, RC4049, “GST/HST Information for Municipalities”, and RC4034, “GST/HST Public Service Bodies’ Rebate”.

The most notable update relates to the new public service bodies’ rebate for municipalities in Newfoundland and Labrador. For 2016, the rebate is equal to 25% of the provincial part of the HST paid or payable on eligible purchases and expenses, and this will increase to 57.14% in 2017. Note that legislative changes to the Excise Tax Act and its Regulations have not yet been enacted. Additional information on this rebate can be found in RC4034 and RC4049.