Financial Institution GST/HST Annual Information Return

RC4419(E) Rev.11

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Table of contents

• An overview
• Who has to file?
  • Listed financial institution
  • Selected listed financial institution
  • De minimis financial institution
• Filing instructions
  • Estimated amounts
  • Penalties
• Part A – Information on the financial institution
• Part B – Sales and other revenue
  • GST/HST collected and collectible
  • Supplies of financial services
  • Supplies other than financial services
  • Other revenue
  • Total sales and other revenue made during the fiscal year
• Part C – Purchases and other expenditures
  • GST and federal part of HST paid or payable
  • Purchases of financial services
  • Purchases other than financial services
  • Other expenditures
  • Total purchases and expenditures for the fiscal year
• Part D – Imports
  • Tax on imports
  • Value of imports
  • Totals
• Part E – Exported supplies
  • Financial services
  • Tangible personal property
  • Intangible personal property and services (other than financial services)
  • Totals
• Part F – Input tax credits
• Part G – Tax adjustments
  • Adjustments to be added to net tax
  • Adjustments to be deducted from net tax
• Part H – ITC allocation method(s) used during the fiscal year
  • Exclusive inputs
  • Excluded inputs (capital real property and capital personal property)
  • Residual inputs
  • Full (100%) ITC recovery
  • Prescribed percentage method
  • Pre-approved method(s)
  • Direct attribution method(s)
  • Specified method(s)
  • Other method(s)
  • Totals
  • Have any of the allocation methods changed from the previous year?
• Part I – Change in use of capital property
  • Totals
• Part J – Group election under section 150
• Part K – Income allocation to various jurisdictions
• Part L – Certification
• Keeping records
• How do you change a return?
• For more information

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What's new

We list the major changes below. This guide contains information based on proposed amendments to the Excise Tax Act and Regulations. At the time of publication, these proposed amendments were not law. The publication of this guide should not be taken as a statement by the Canada Revenue Agency that such amendments will in fact become law in their current form. If they become law as proposed, they will be effective as of the dates indicated.

Is this guide for you?

Use this guide to help you complete Form GST111, Financial Institution GST/HST Annual Information Return, if you are a:

• listed financial institution;
• selected listed financial institution; or
• de minimis financial institution.

GST/HST and Quebec

In Quebec, Revenu Québec generally administers the GST/HST. If the physical location of your business is in Quebec, you have to file your returns and make your remittances with Revenu Québec using its forms. For more information, see the Revenu Québec publication IN 203 V, General Information Concerning the QST and the GST/HST, available at the Revenu Quebec website, or call 1-800-567-4692.

An overview

Financial institutions often provide a wide range of services. In addition to tax exempt financial services, a significant number also engage in taxable activities, both in Canada and internationally. A financial institution that is a registrant must generally file Form GST34, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return for Registrants and in some cases may file Form GST494, Goods and Services Tax/Harmonized Sales Tax Final Return for Selected Listed Financial Institutions.

To provide the information summarized on Form GST34 or Form GST494, financial institutions have to do a variety of calculations. One of the purposes of Form GST111, Financial Institution GST/HST Annual Information Return, is to record the results of this analysis. This guide gives line-by-line instructions on how to complete Form GST111.

In this guide, all legislative references are to the Excise Tax Act (ETA), and the proposed amendments to the ETA released on January 28, 2011, unless we specify otherwise.

As a result of these recent changes, the HST rate varies depending on the province. The chart below shows the applicable rates that apply following the rate changes in 2010.

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GST/HST Rates
Province	Before July 1, 2010	On or after July 1, 2010
Ontario	GST at 5%	HST at 13%
British Columbia	GST at 5%	HST at 12%
Nova Scotia	HST at 13%	HST at 15%
New Brunswick	HST at 13%	HST at 13%
Newfoundland and Labrador	HST at 13%	HST at 13%
Territories and all other provinces in Canada	GST at 5%	GST at 5%

Who has to file?

A reporting institution has to complete Form GST111, Financial Institution GST/HST Annual Information Return.

Reporting institution means a person, other than a prescribed person or a person of a prescribed class, that:

• is a financial institution, under subsection 149(1), at any time in the fiscal year;
• is a registrant at any time in the fiscal year; and
• the total of all amounts each of which is an amount included in computing, for the purposes of the Income Tax Act, the person’s income, or, if the person is an individual, the person’s income from a business, for the person’s last taxation year that ends in the fiscal year, exceeds the amount determined by the following formula:

$1 million × A/365

(where A equals the number of days in the taxation year).

Note
A selected listed financial institution that is described in subparagraph 149(1)(a)(vi) – a segregated fund of an insurer or in subparagraph 149(1)(ix) – an investment plan, other than a trust governed by a registered retirement savings plan (RRSP), a registered retirement income fund (RRIF) or a registered education savings plan (RESP), is proposed to be a prescribed person under the draft Financial Services (GST/HST) Regulations released by the Department of Finance on January 28, 2011 and as a result would not be required to complete Form GST111.

Registrant means a person who is registered or who is required to be registered for the GST/HST.

Listed financial institution

You are a listed financial institution throughout your taxation year if at any time in the particular year, you are included in any one of the categories in subparagraphs 149(1)(a)(i) through (xi).

Examples of listed financial institutions include:

• a bank;
• a corporation that is authorized to carry on in Canada the business of offering to the public its services as a trustee;
• an investment or insurance broker;
• a credit union;
• an insurer;
• a segregated fund of an insurer;
• the Canada Deposit Insurance Corporation;
• a person whose principal business is the lending of money;
• an investment plan;
• a tax discounter; and
• a corporation that has made an election for exempt supplies under section 150 and that election is in effect.

For more information, see GST/HST Memoranda 17.6, Definition of “Listed Financial Institution.”

Selected listed financial institution

In general terms, you would be considered to be a selected listed financial institution (SLFI) for GST/HST purposes under proposed subsection 225.2(1) throughout a reporting period in a fiscal year that ends in your taxation year if you satisfy the following two conditions:

• you are a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) of the ETA at any time during your taxation year; and
• you have a permanent establishment in a participating province and a permanent establishment in any other province, at any time during your taxation year.

Notes
It is proposed that the definition of what constitutes a permanent establishment be expanded for purposes of proposed subsection 225.2(1) of the ETA and the draft SLFI Regulations.

A person who is a listed financial institution under subparagraph 149(1)(a)(xi) because of an election under section 150, cannot be a selected listed financial institution.

For more information, see Guide RC4050, Information for Selected Listed Financial Institutions.

De minimis financial institution

In general, you are considered to be a de minimis financial institution if you earn a significant amount of interest, certain dividends, or income from separate fees or charges for financial services.

More specifically, you are considered to be a de minimis financial institution if you meet the criteria in paragraphs 149(1)(b) or 149(1)(c), discussed below.

Paragraph 149(1)(b)

Under paragraph 149(1)(b), you are generally considered to be a financial institution throughout your taxation year if your financial revenue in your immediately preceding taxation year is more than 10% of your total revenues (other than from sales of capital property) in that year and is more than $10 million.

Financial revenue generally includes interest, dividends, or a separate fee or charge for a financial service that is included in computing the person's income for purposes of the Income Tax Act. However, it does not include interest or dividends from a related corporation, a dividend in kind or a patronage dividend, or a separate fee for a zero-rated supply of a precious metal.

For example, a holding company may be considered a financial institution if it earns financial revenues, such as dividends, from an unrelated corporation for its previous taxation year to the extent that it meets the thresholds mentioned above.

Paragraph 149(1)(c)

Under paragraph 149(1)(c), you are generally considered to be a financial institution if your income for purposes of the Income Tax Act from interest or separate fees related to credit cards you issue, or related to loans, advances, or credit you grant, was more than $1 million in your preceding taxation year.

For the purpose of this de minimis test, penalties levied by a vendor for late payment of an account receivable generated in the normal course of the vendor's business would not be considered to be a fee for the provision of credit.

In addition, interest from a related corporation is not included in this total.

Example
A department store that issues credit cards to its customers and that receives interest related to those credit cards would be a financial institution if the income it earns from the interest was more than $1 million in its preceding taxation year.

Filing instructions

Although you may file your GST/HST returns more frequently, you must file Form GST111 once per fiscal year, within six months of the end of your fiscal year.

To file Form GST111, send your completed form to the same tax centre to which you file your GST/HST returns. Addresses are listed on the last page of the form.

The following sections contain detailed explanations of the information that you have to enter on each line of Form GST111.

Where applicable you should report worldwide amounts on this form. For example, a non-resident financial institution would report worldwide amounts and not just amounts related to its Canadian branch, when completing this form.

Enter a zero if the amount for a line on Form GST111 is nil or the line does not apply to you. Do not leave lines blank.

Estimated amounts

You may enter a reasonable estimate of an amount for certain lines, where indicated, where the amount is not reasonably ascertainable. This guide contains information about the lines you may be able to complete using estimates.

If the amount you enter on a line is an estimated amount, you have to tick the grey box beside the line number.

Penalties

In addition to any other penalty that may apply, every reporting institution that fails to report an amount as and when required, or that misstates such an amount in Form GST111, will be liable to one of two types of penalties, unless due diligence was exercised in attempting to report that amount.

The first penalty may apply to amounts required to be reported on the following lines:

050 (Part B); 240-247, 2480–2483, and 2841-2843, 2845-2847, 2853 and 2858-2859 (Part D); 450 and 460 (Part F); 550-554 and 560-563 (Part G); 620-623, 634, 635, 640-645, 654, 661 663, 665 and 670-675 (Part H); 750-754 and 760 764 (Part I).

The penalty is equal to the lesser of $1,000 and 1% of the absolute value of the difference between the amount and:

• if the reporting institution failed to report the amount when and as required, zero; or
• if the reporting institution misstated the amount, the amount reported by the reporting institution on the information return.

The second penalty may apply to amounts required to be reported on the following lines:

060, 061, 070-073, 075 and 080 (Part B); 150, 160, 170, 171, 173 and 180 (Part C); 250-252, 260-262, 270-272 and 280-282 (Part D); 350-352, 360-362 and 370-372 (Part E); 850, 851, 860 and 861 (Part J).

The penalty is equal to the lesser of $1,000 and 1% of the total of:

• all amounts that became collectible by the reporting institution, as or on account of the GST/HST in a reporting period in the fiscal year; and
• all amounts that the reporting institution claimed as an input tax credit in a GST/HST return filed by the reporting institution for a reporting period in the fiscal year.

The penalties described above may apply to amounts required to be reported in an information return (i.e., Form GST111) that is required to be filed after June 29, 2010. If an information return is required to be filed after June 29, 2010, but on or before July 12, 2010, (date of Royal Assent) the penalty only applies if the amounts are not reported in an information return that is filed not later than six months after July 12 2010. The following are examples of when penalties are applied and are not applied.

Part A – Information on the financial institution

Enter the identification information requested, such as the name of the financial institution and the Business Number. You also have to include your fiscal year and information about the contact person.

Each year that you complete Form GST111, you have to enter your type of financial institution and your business type (for example, bank, insurance company, and credit union).

You also have to enter a description of your major business activities. This information is useful to determine which industry classification the financial institution belongs to. For example, this information is used to clarify which industry group a financial institution belongs to under the North American Industry Classification System (NAICS).

Note
If you are providing a NAICS code, you still have to include a detailed description of your major business activities.

If this is the second or subsequent filing of Form GST111 for the financial institution and your major business activity has not changed since your last filing, you can write “no change since last filing” in the space provided.

Part B – Sales and other revenue

Enter an amount on each of lines 050 through 090. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. If an amount is not reasonably ascertainable, you may use a reasonable estimate of the amount on lines 060, 061, 070 073, 075, and 080 by ticking the grey box beside each line number (for example, you may use amounts you reported in the General Index of Financial Information [GIFI]).

GST/HST collected and collectible

Line 050

Enter the total amount of the GST/HST collected or collectible during the fiscal year. For example, this amount would include the GST/HST that you are deemed to have collected and the GST/HST you are required to collect on any taxable sale of real property, or capital assets.

This amount should equal the total of all amounts you have entered on line 103 of your GST/HST return(s) for the fiscal year.

Supplies of financial services

The term financial service is defined in subsection 123(1) and includes a broad range of transactions related to financial instruments and money.

Line 060

Enter the total amount of exempt supplies of financial services made during the fiscal year.

You should base this amount on revenues reported for income tax purposes that are attributable to your exempt supplies of financial services.

A supply deemed under subsection 150(1) to be a supply of a financial service is exempt and should be included on line 060. See the next section for more information.

Note
Supplies of financial services are exempt unless zero-rated (GST/HST taxable at the rate of 0%) under Part IX of Schedule VI. See the explanation for line 061 for information on supplies of financial services that are zero-rated.

Election under subsection 150(1)

Subsection 150(1) generally entitles two corporations that are members of a closely related group that includes a listed financial institution to make an election to treat every taxable supply between them of property by way of lease, licence, or similar arrangement, or of a service that is made while the election is in effect and that would otherwise be a taxable supply, as a supply of a financial service.

A corporation that has made this election would have filed Form GST27, Election or Revocation of an Election to Deem Certain Supplies to be Financial Services.

Line 061

Enter the total amount of zero-rated supplies of financial services made during the fiscal year.

You should base this amount on revenues reported for income tax purposes that are attributable to your zero-rated supplies of financial services. Supplies of financial services made by a financial institution may be zero-rated under sections 1, 2, or 3 of Part IX of Schedule VI. Supplies of financial services that may be zero-rated include:

• certain financial services when supplied to a non-resident person;
• financial services related to certain insurance policies for non-resident individuals or real property outside Canada, or that relate to risks ordinarily situated outside Canada; and
• a sale of precious metals by a financial institution on whose behalf the precious metals were refined.

Example
You are a financial institution and you supply a financial service of granting a mortgage loan to a non-resident person to buy a house in Seattle, Washington. Your supply of this financial service is zero-rated.

For more information, see GST/HST Memoranda 17.2, Products and Services of a Deposit-Taking Financial Institution. Also see GST Memorandum 300-3-9, Financial Services, for information about zero-rated supplies of financial services.

Line 062

Add lines 060 and 061, and enter the total on line 062. It is recognized that this total may include estimated amounts.

Supplies other than financial services

Line 070

Enter the total amount of zero-rated supplies, other than financial services, made during the fiscal year. Do not include provincial sales tax.

Supplies other than financial services may be zero-rated under any Part of Schedule VI, other than Part IX of Schedule VI, which applies only to financial services. For example, exports of certain property or services may be zero-rated under Part V of Schedule VI.

Example
An insurance agent supplies an estate planning service to a non-resident individual. The non-resident is not in Canada at any time for this supply. The supply of this service is zero-rated as an export under Part V of Schedule VI.

See GST/HST Memoranda 4.5.2, Exports – Tangible Personal Property, and GST/HST Memoranda 4.5.3, Exports – Services and Intellectual Property, for more information on zero-rated exports.

Line 071

Enter the total amount of exempt supplies, other than financial services, made during the fiscal year. Do not include provincial sales tax.

Supplies other than financial services may be exempt under any Part of Schedule V, other than Part VII of Schedule V, which applies only to financial services.

Lines 072 to 074

Enter on line 074 the total amount of taxable supplies subject to the GST/HST (other than zero-rated supplies) made during the fiscal year. Do not include the GST/HST or provincial sales tax.

Provide a breakdown of your total amount of taxable supplies on line 074 as explained below:

On line 072, enter the total amount of taxable supplies (other than zero-rated supplies) subject to the GST made during the fiscal year. Do not include the GST or provincial sales tax.

On line 073, enter the total amount of taxable supplies (other than zero-rated supplies) subject to the HST made during the fiscal year. Do not include the HST.

You may enter estimates on lines 072 or 073 if these amounts are not reasonably ascertainable. However, the total of these two lines must equal the amount entered on line 074.

Line 075

Enter the total amount of supplies, other than financial services, made during the fiscal year, which have not been entered on lines 070 to 073. Do not include provincial sales tax.

For example, line 075 would include the amount you received from a supply made outside Canada and from the disposition of property that, before the disposition, was used exclusively in non-commercial activities.

Line 076

Add lines 070, 071, 074, and 075, and enter the total on line 076. It is recognized that this total may include estimated amounts.

Other revenue

Line 080

Enter the total amount of revenues that were not consideration for a supply, specify their sources, and provide a description.

Include revenue you received from outside Canada and from grants, subsidies, or damage payments where those payments were not consideration for a supply. Also, include natural resource royalties you received that are deemed not to be consideration for a supply.

Total sales and other revenue made during the fiscal year

Line 090

Add lines 062, 076, and 080, and enter the total on line 090. It is recognized that this total may include estimated amounts.

Part C – Purchases and other expenditures

Enter an amount on each of lines 150 through 190. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. If an amount is not reasonably ascertainable, you may use a reasonable estimate of the amount on lines 150, 160, 170, 171, 173, and 180 by ticking the grey box beside each line number (for example, you may use amounts you reported in the General Index of Financial Information [GIFI]).

GST and federal part of HST paid or payable

Line 150

Enter the total amount of the GST and federal part of the HST that became payable or was paid without becoming payable by you during the fiscal year including amounts of deemed tax or self-assessed tax.

Purchases of financial services

Line 160

Enter the total amount of exempt and zero-rated financial services you bought during the fiscal year. You should base this amount on costs reported for income tax purposes that are attributable to your purchases of exempt and zero-rated supplies of financial services.

A purchase of a supply deemed under subsection 150(1) to be a supply of a financial service should be included on line 160. See Line 060 for more information on an election under subsection 150(1).

Purchases other than financial services

Lines 170 to 172

Enter the total amount of purchases you made during the fiscal year, other than financial services, that were GST/HST taxable (exclude purchases of zero-rated supplies). For example, enter your purchases of capital property and office supplies.

On line 170, enter the total amount of taxable purchases subject to GST. Do not include the GST or provincial sales tax.

On line 171, enter the total amount of taxable purchases subject to the HST. Do not include the HST.

Add lines 170 and 171, and enter the total on line 172. It is recognized that this total may include estimated amounts.

Line 173

Enter the total amount of all purchases of supplies that you made during the fiscal year that are not financial services, and that were exempt, zero-rated, or non-taxable.

For example, include purchases of exempt supplies of building permits from a municipality, zero-rated supplies of international flights, non-taxable imported supplies and supplies outside Canada.

Do not include expenses you incurred during the fiscal year that were not consideration for a supply, such as amounts you paid as salaries or wages, grants, subsidies, or damage payments, or amounts you paid as natural resource royalties that were deemed not to be consideration for a supply. Include these other expenditures on line 180.

Line 174

Add lines 172 and 173, and enter the total on line 174. It is recognized that this total may include estimated amounts.

Other expenditures

Line 180

Enter the total amount of other expenditures and provide a description for each type or category of expense.

This amount could include expenses you incurred inside or outside Canada during the fiscal year that were not consideration for a supply, such as amounts you paid as salaries or wages, grants, subsidies, or damage payments. Also include on this line amounts paid as natural resource royalties that were deemed not to be consideration for a supply.

Total purchases and expenditures for the fiscal year

Line 190

Add lines 160, 174, and 180, and enter the total on line 190. It is recognized that this total may include estimated amounts.

Part D – Imports

The GST/HST applies not only to domestic purchases but also to imports. Imported goods are generally subject to the GST/HST unless identified in Schedule VII as non-taxable for GST/HST purposes.

Certain recipients of imported services and intangible personal property have to self-assess the tax.

Imported taxable supplies include taxable supplies (other than certain zero-rated supplies or prescribed supplies) of services and intangible property made outside Canada to a person who is resident in Canada, unless certain exclusions apply. One such exclusion is a supply of a service that is acquired for consumption, use, or supply, exclusively outside Canada by the person and that is not part of a business or an adventure or concern in the nature of trade engaged in by the person in Canada.

In addition to self-assessing on imported taxable supplies, a financial institution that is also a qualifying taxpayer is required to self-assess under section 218.01 and subsection 218.1(1.2) (if applicable) for a specified year on the total of all amounts of qualifying consideration or where an election under subsection 217.2(1) is in effect the total of internal and external charges. See GST/HST Technical Interpretation Bulletin B-095, “The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules)” for further information.

Also, under section 217.1, a financial institution that is also a qualifying taxpayer will have to self assess the GST/HST on each amount of qualifying consideration for an outlay made or an expense incurred outside Canada that is greater than zero for a taxation year. See GST/HST Technical Information Bulletin B-095, “The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules)” for further information.

Tax on imports

Enter an amount on each of lines 240 through 247 and 2480 through 2483. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. An estimated amount cannot be used for any of lines 240 through 247 or lines 2480 through 2483.

Line 240

Enter the total amount of the GST that became payable or that was paid without becoming payable for imported goods under section 212.

Section 212 requires every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, to also pay tax at the rate of 5% on the value of the goods.

Exception
No tax is payable on imports of goods included in Schedule VII. For example, goods you import that are supplied by a non-resident for no consideration, other than shipping and handling charges, as replacement property under a warranty are not subject to tax.

Line 241

Enter the total amount of the GST that became payable or that was paid without becoming payable for imported taxable supplies under section 218.

Section 218 requires every recipient of an imported taxable supply to pay tax at the rate of 5% on the value of the supply. As a GST/HST registrant, you should use your regular GST/HST return to self assess the tax.

Example
You are a financial institution that is a GST/HST registrant and you are resident in Canada. You hired a non-registered non-resident company to provide taxable services that relate to your tax-exempt activities in Canada. You have to self-assess tax on the value of the services by using line 405 of your GST/HST return.

Line 242

Enter the total amount of the GST that became payable on qualifying consideration under paragraph 218.01(b). This amount should be the amount of the GST that you self assessed on all amounts of qualifying consideration for the specified year and included on line 405 of your GST/HST return(s).

Line 243

Enter the total provincial part of the HST that became payable or that was paid without becoming payable on certain imported goods under section 212.1.

Section 212.1 requires every person who is a resident in a participating province and is liable under the Customs Act to pay duty on imported goods, or who would be liable if the goods were subject to duty, to also pay the provincial part of the HST on the value of the goods.

Line 244

Enter the total provincial part of the HST that became payable or that was paid without becoming payable on certain imported goods under section 220.07.

For example, you may have to self-assess the provincial part of the HST if you bring commercial goods from a place outside Canada into a participating province.

This payment is in addition to the tax imposed by section 212.

Example
You are a Canadian corporation that is a de minimis financial institution. You bring commercial goods into New Brunswick from a place outside Canada. Since New Brunswick is a participating province, section 220.07 requires the corporation to pay, in addition to the tax imposed under section 212, the provincial part of the HST at the tax rate applicable to the particular participating province.

Line 245

Enter the total provincial part of the HST that became payable or that was paid without becoming payable for imported taxable supplies under subsection 218.1(1).

Line 246

Enter the total provincial part of the HST that became payable on qualifying consideration under paragraph 218.1(1.2)(b).

Line 247

Enter the total of any other amounts of the provincial part of the HST you had to self-assess.

Line 2480

Enter the total amount of the GST that became payable or was paid without becoming payable for all internal charges under paragraph 218.01(a).

Internal charge

Internal charge for a specified year is an outlay or an expense incurred, between a qualifying establishment of a qualifying taxpayer in Canada and another qualifying establishment of the same qualifying taxpayer in another country. To determine if your expenses are internal charges, refer to subsection 217.1(4) of the ETA.

Line 2481

Enter the total amount of the GST that became payable or was paid without becoming payable for all external charges under paragraph 218.01(a).

External charge

External charge for a specified year of a qualifying taxpayer is in respect of an outlay or expense described in any of paragraphs 217.1(2)(a) to (c). Refer to section 217 for the definition of external charge.

Line 2482

Enter the total provincial part of the HST that became payable or was paid without becoming payable for all internal charges under paragraph 218.1(1.2)(a).

Line 2483

Enter the total provincial part of the HST that became payable or was paid without becoming payable for all external charges under paragraph 218.1(1.2)(a).

Value of imports

Lines 250 to 293 and 2841 to 2860

Enter an amount on each of lines 250 through 293 and 2841 through 2860. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. If an amount is not reasonably ascertainable, you may use a reasonable estimate of the amount on lines 250 252, 260 262, 270 272, and 280 282, by ticking the grey box beside each line number. Do not include the GST/HST or provincial sales tax.

Enter the total value of property and services that you imported into Canada during the fiscal year in the following categories:

• financial services;
• taxable goods;
• taxable supplies other than goods;
• other inputs.

Enter the total of all amounts related to self-assessment under section 218.01 and subsection 218.1(1.2) for the specified year in the following categories:

• Element A of qualifying consideration formula;
• Element B of qualifying consideration formula;
• total qualifying consideration A minus B;
• internal charges; and
• external charges.

The amounts entered on lines 250 to 252 should be based on your costs reported for income tax purposes and attributable to imports of financial services.

Report the amounts from lines 250 to 293 based on the source of the import. The source must be identified as one of the following:

• head office or branches;
• related persons; or
• third parties.

Related persons

Persons are related to each other for these purposes if, by reason of subsections 251(2) to (6) of the Income Tax Act, they are related for the purposes of that Act.

In addition, a member of a partnership is deemed to be related to the partnership.

Third parties

Enter the value of property and services you imported into Canada during the fiscal year that do not belong under the other two categories.

Totals

Lines 253, 263, 273, 283, 2844, 2848, 2852, 2856, and, 2860

Enter on lines 253, 263, 273, 283, 2844, 2848, 2852, 2856, and, 2860, the total of each row. It is recognized that these totals may include estimated amounts.

Lines 2841 to 2843 and 2845 to 2847

The amounts entered on lines 2841 to 2843 are the amounts for “Element A of the qualifying consideration formula.” The amounts entered on lines 2845 to 2847 are the amounts for “Element B of the qualifying consideration formula.” The amounts from Element B are subtracted from the amounts in Element A, and the results are entered on lines 2849 to 2851, “Total qualifying consideration A minus B.” The amounts on lines 2849 to 2852 are added in the total of each column.

Lines 290 to 293

Enter on lines 290 to 293 the total of each column. Do not include 2841, 2842, 2843, 2844, 2845, 2846, 2847, and 2848 in the calculation for any of the column totals. The amounts in the shaded area for Elements A and B will not be used in the final total of the columns. It is recognized that these totals may include estimated amounts.

Part E – Exported supplies

Supplies of property or services may be zero-rated if exported from Canada. Zero-rated supplies of exported goods and services are described in Schedule VI.

On lines 350 to 383, enter the total value of zero-rated exports of property and services during the fiscal year. The recipient of the export must be identified as one of the following:

• head office or branches;
• related persons; or
• third parties.

Enter an amount on each of lines 350 through 383. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. If an amount is not reasonably ascertainable, you may use a reasonable estimate of the amount on lines 350-352, 360-362, and 370-372, by ticking the grey box beside each line number.

Financial services

Lines 350 to 352

The amounts entered on lines 350 to 352 should be based on your revenues reported for income tax purposes and attributable to zero-rated exports of financial services.

Exported supplies of financial services made by a financial institution may be zero-rated under sections 1 or 2 of Part IX of Schedule VI. Examples of exported supplies that may be zero-rated include:

• certain financial services when supplied to a non-resident person; and
• financial services for certain insurance policies for non-resident individuals or real property outside Canada, or that relate to risks ordinarily situated outside Canada.

Example
A credit union charges a processing fee to a non-resident for its mortgage loan related to real property that is situated outside Canada. This supply of a financial service is zero-rated. However, if the mortgage were held on real property situated in Canada, the financial service would not be zero-rated, but exempt.

See GST Memorandum 300-3-9, Financial Services, for information about zero-rated supplies of financial services.

Also see GST/HST Memoranda 4.5.1, Exports – Determining Residence Status, for information on residency.

Tangible personal property

Lines 360 to 362

Part V of Schedule VI describes circumstances in which the supply of a good would be a zero-rated export.

Example
You sell office equipment from your Canadian location. A person in Canada purchases equipment from you but does not take possession. Instead, as per the customer's request, you ship the equipment to a non-resident in New York City. The supply of the equipment is made in Canada but is zero-rated as an export.

See GST/HST Memoranda 4.5.2, Exports – Tangible Personal Property, for more information.

Intangible personal property and services (other than financial services)

Lines 370 to 372

Part V of Schedule VI describes circumstances in which supplies of intangible personal property and services would be zero-rated as exports.

See GST/HST Memoranda 4.5.3, Exports – Services and Intellectual Property, for more information.

Totals

Lines 353, 363, and 373

Enter on lines 353, 363, and 373 the total of each row. It is recognized that these totals may include estimated amounts.

Lines 380 to 383

Enter on lines 380 to 383 the total of each column. It is recognized that these totals may include estimated amounts.

Part F – Input tax credits

As a GST/HST registrant, you may be eligible to claim input tax credits (ITCs) to recover the GST/HST payable, or paid without becoming payable, on inputs used to make taxable supplies. Generally, you cannot claim ITCs to recover the GST/HST paid on inputs used to make exempt supplies.

Enter an amount on each line in Part F. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. An estimated amount cannot be used in Part F.

Lines 450 to 470

The ITCs you claim for a fiscal year may include amounts of the GST/HST that became payable or that were paid without becoming payable, in a previous year.

On line 450, enter the amount of ITCs you claimed for the GST/HST that became payable during the fiscal year without being paid before the fiscal year, or that was paid during the fiscal year without it becoming payable during the fiscal year.

On line 460, enter the amount of ITCs you claimed in the fiscal year that relate to previous fiscal years.

Add lines 450 and 460, and enter the total on line 470. This amount should equal the total of all ITC amounts you reported on line 106 of your GST/HST return(s) for the fiscal year.

Notes
You must complete “Part H – ITC allocation method(s) used during the fiscal year” to support the amounts reported on line 470.

An amount on lines 450 to 470 should not be reduced by the amount of any recaptured input tax credits (RITCs) related to the provincial part of the HST for Ontario and British Columbia for periods commencing after June 30, 2010.

Part G – Tax adjustments

Adjustments to be added to net tax

Enter the total amount of adjustments to be added to the amount of your net tax for the fiscal year.

Enter an amount on each line in Part G. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. An estimated amount cannot be used in Part G.

Line 550

Enter the total of the GST/HST part of credit notes received and debit notes issued. Include adjustments for tax paid in error, price adjustments, and patronage dividends.

Line 551

If you wrote off the GST/HST part of any bad debts in a previous return and then recovered all or some of those debts, enter the total amount of GST/HST you have recovered during the fiscal year based on the formula included in Guide RC4022, General Information for GST/HST Registrants.

Line 552

If your lease payments for a passenger vehicle are more than the maximum lease costs that are deductible under the Income Tax Act, once a year you have to add back part of the ITCs you previously claimed for these payments. Enter the amount you have to add back on line 552. See Guide RC4022, General Information for GST/HST Registrants, for the maximum lease cost.

Line 553

If you have claimed 100% ITCs for food, beverage, and entertainment expenses during the year, once a year you generally have to add back 50% of those credits to the extent those expenses are not deductible under the Income Tax Act. Enter the amount you have to add back on line 553. See Guide RC4022, General Information for GST/HST Registrants, for information on the special rules for claiming ITCs on such expenses.

Line 554

Enter the total amount of other adjustments to be added to your net tax during the fiscal year.

Example
A selected listed financial institution has a positive amount on line 031 on its Form GST494 for a fiscal year ending prior to July 1, 2010 and on line 038 on its Form GST494 for a fiscal year ending after June 30, 2010. The SLFI includes this amount on line 554.

Line 555

Add lines 550 to 554, and enter the total on line 555.

This amount should equal the total amount of adjustments you reported on line 104 of your GST/HST return(s) for the fiscal year.

Adjustments to be deducted from net tax

Enter the total amount of adjustments to be deducted from the amount of your net tax for the fiscal year.

Line 560

Enter the total of the GST/HST part of credit notes issued and debit notes received, including adjustments for tax paid in error (other than a rebate claimed under section 261), price adjustments, and patronage dividends.

Line 561

If you previously accounted for the full amount of GST/HST on supplies that you made that resulted in bad debts, enter the GST/HST part of bad debts written off during the fiscal year.

Line 562

Enter the total amount of adjustments for rebates paid or credited to buyers.

Line 563

Enter the total amount of other adjustments to be deducted from your net tax during the fiscal year.

Example
A selected listed financial institution (SLFI) has a negative amount on line 031 on its Form GST494 for a fiscal year ending prior to July 1, 2010 and on line 038 on its Form GST494 for a fiscal year ending after June 30, 2010. The SLFI includes this amount on line 563.

Line 564

Add lines 560 to 563, and enter the total on line 564.

This amount should equal the total amount of adjustments you reported on line 107 of your GST/HST return(s) for the fiscal year.

Part H – ITC allocation method(s) used during the fiscal year

You must enter an amount on each line in Part H if you have claimed any ITCs in the fiscal year. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. An estimated amount cannot be used in Part H.

Generally, when you use an input exclusively in the course of making taxable supplies, you can claim a full (100%) ITC for the GST/HST you paid to acquire the input. However, if you use an input in the course of making both taxable and exempt supplies, you have to allocate its use between those taxable and exempt supplies to determine the percentage of the GST/HST paid on the input that can be recovered as an ITC.

There are detailed ITC allocation rules for financial institutions. These rules are explained in Technical Information Bulletin B-098, Application of Section 141.02 to Financial Institutions That Are Qualifying Institutions, Technical Information Bulletin B-099, Application of Section 141.02 to Financial Institutions That Are Not Qualifying Institutions, Notice 236, Draft GST/HST Technical Information Bulletin on the Input Tax Credit Allocation Methods for Financial Institutions for Purposes of Section 141.02 of the Excise Tax Act.

The totals from lines 680 to 685 in this part should equal the amount reported on line 470 of Part F.

An amount in Part H should not be reduced by the amount of any recaptured input tax credits (RITCs) related to the provincial part of the HST for Ontario and British Columbia for periods commencing after June 30, 2010.

Exclusive inputs

Exclusive input means property or a service (other than an excluded input) that you acquired, imported, or brought into a participating province for your consumption or use:

• directly and exclusively to make taxable supplies for consideration; or
• directly and exclusively other than to make taxable supplies for consideration.

Note
In determining exclusive inputs, consideration does not include nominal consideration.

Excluded inputs (capital real property and capital personal property)

Excluded input means:

• property for use as capital property;
• property or a service that is acquired, imported, or brought into a participating province for use as an improvement to property for use as capital property; or
• a prescribed property or service.

Residual inputs

Direct input

Direct input means property or a service, other than:

• an excluded input;
• an exclusive input; or
• a non-attributable input.

Non-attributable inputs

Non-attributable input means property or a service that is:

• not an excluded input;
• not an exclusive input;
• acquired, imported, or brought into a participating province; and
• not attributable to the making of a particular supply.

Full (100%) ITC recovery

Lines 620 to 623

Enter on lines 620 to 623 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you were entitled to a full recovery of the GST/HST that became payable or was paid without becoming payable. Categorize this information based on the type of input.

Prescribed percentage method

Lines 634 and 635

Lines 634 and 635 only apply to:

• a qualifying institution that is not using a method pre-approved by the CRA; or
• a financial institution of a prescribed class (i.e., a bank, an insurer or a securities dealer) that has an election in effect under subsection 141.02(9).

Enter on lines 634 and 635 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you determined your recovery of the GST/HST that became payable or was paid without becoming payable using the prescribed percentage method.

Categorize this information based on the type of your residual input(s). That is, you must enter separately the ITC amounts for direct inputs and the ITC amounts for non-attributable inputs.

Qualifying institution

In general terms, a qualifying institution for a particular fiscal year, is a financial institution that meets the following requirements in the fiscal year:

• the financial institution is a bank, an insurer or a securities dealer at any time in the fiscal year;
• the financial institution has two fiscal years immediately preceding the particular fiscal year and in each of those two fiscal years:
  • the financial institution had an adjustment tax credit amount equal to or exceeding $500,000; and
  • the financial institution had a tax credit rate equal to or exceeding 12% for banks, 10% for insurers or 15% for securities dealers.

Refer to GST/HST Technical Information Bulletin B-097, Determining Whether a Financial Institution is a Qualifying Institution for Purposes of Section 141.02 for additional information.

Bank

Bank, in respect of a fiscal year, means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act but does not include an insurer (as that term is described below).

Insurer

Insurer, in respect of a fiscal year, means a person who is licensed or otherwise authorized under the laws of Canada or a Canadian province or territory to carry on in Canada an insurance business, or under the laws of another jurisdiction to carry on in that jurisdiction an insurance business, and, at any time in the fiscal year, the person carries on an insurance business as its principal business in Canada.

Securities dealer

Securities dealer, in respect of a fiscal year, means a person who:

• is not a bank or an insurer (as those terms are previously described) at any time in the fiscal year;
• carries on, at any time in the fiscal year, a business as a trader or dealer in, or as a broker or salesperson of, securities as the person's main business in Canada; and
• is registered under the laws of Canada or a province to carry on in Canada, at any time in the fiscal year, a business as a trader or dealer in, or as a broker or salesperson of, securities.

Pre-approved method(s)

Lines 640 to 645A person that is a qualifying institution for a fiscal year can apply to use its own ITC allocation method(s) for the fiscal year.

Refer to GST/HST Technical Information Bulletin B-098, Application of Section 141.02 to Financial Institutions That Are Qualifying Institutions and GST/HST Technical Bulletin B-099, Application of Section 141.02 to Financial Institutions That Are Not Qualifying Institutions for additional information.

Line 640

Enter the total amount of eligible ITCs, if any, you claimed during the fiscal year for exclusive inputs where you have used a pre-approved method and the amount of the ITC is subject to any restrictions or subsequent adjustments (for example, an ITC with respect to meals and entertainment expenses).

Lines 641 to 645

Enter on lines 641 to 645 the total amount of eligible ITCs, if any, you claimed during the fiscal year using pre-approved methods. Categorize this information based on the type of input.

Exception
Do not include in this amount any amount related to an ITC for an excluded input for which you were entitled to claim a full ITC, even if it was calculated using a pre-approved method. These amounts should be included on lines 621 to 623.

Direct attribution method(s)

A direct attribution method is a method that conforms to criteria, rules, terms, and conditions specified by the Minister, and that is the most direct way to determine the operative extent and procurative extent of property or a service. For more information on the direct attribution method, see Notice 236, Draft GST/HST Technical Information Bulletin on the Input Tax Credit Allocation Methods for Financial Institutions for Purposes of Section 141.02 of the Excise Tax Act.

Line 654

Enter on line 654 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you determined your recovery of the GST/HST payable or paid without having become payable on direct inputs using a direct attribution method.

Specified method(s)

A specified method means a method that conforms to criteria, rules, terms, and conditions specified by the Minister and that is used to determine the operative extent and the procurative extent of property or a service. For more information on the specified method, see Notice 236, Draft GST/HST Technical Information Bulletin on the Input Tax Credit Allocation Methods for Financial Institutions for Purposes of Section 141.02 of the Excise Tax Act.

Lines 661 to 665

Enter on lines 661 to 665 the total amount of eligible ITCs, if any, you claimed during the fiscal year for which you determined your recovery of the GST/HST payable or paid without having become payable using a specified method. Categorize this information based on the type of input.

Exception
Do not include in this amount any amount related to an ITC for an excluded input for which you were entitled to claim a full ITC, even if it was calculated using a specified method. These amounts should be included on lines 621 to 623.

Other method(s)

Line 670

Enter the total amount of eligible ITCs, if any, you claimed during the fiscal year for exclusive inputs where the amount of the ITC is subject to any restrictions or subsequent adjustments (for example, an ITC with respect to meals and entertainment expenses), unless this amount has been reported on line 640.

Lines 671 to 675

Enter on lines 671 to 675 the total amount of eligible ITCs, if any, you claimed during the fiscal year which has not already been included in lines 621 to 665 (other than 640). Categorize this information based on the type of input.

Also provide a brief description of the other method(s) you used in the space directly below the chart.

Totals

Lines 680 to 685

Enter on lines 680 to 685 the total from each column.

Have any of the allocation methods changed from the previous year?

Indicate whether any allocation methods have changed from a previous year by ticking the appropriate box under the chart in Part  H. Where an allocation method(s) has changed, briefly explain why you changed the method(s).

Part I – Change in use of capital property

Enter on lines 750 to 754 the total amount of ITCs you claimed during the fiscal year as a result of beginning to use or increasing the use of your capital property in commercial activities.

Enter on lines 760 to 764 the total amount of the GST/HST you are deemed to have collected during the fiscal year as a result of ceasing to use or decreasing the use of your capital property in commercial activities.

Include amounts on the applicable line for the reason and nature of the change in use. For example, if you have ceased to use capital property in commercial activities as a result of making a group election for exempt supplies, include this amount on line 763.

You must enter an amount on each line in Part I. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. An estimated amount cannot be used in Part I.

Totals

Lines 755 and 765

Enter on lines 755 and 765 the total of each column.

Part J – Group election under section 150

Complete this part if you have made an election under section 150, using Form GST27, Election or Revocation of an Election to Deem Certain Supplies to be Financial Services, and it is in effect at any time during the fiscal year. See “Part B – Sales and other revenue,” on page 6 for information about this election. To get Form GST27, go to our Forms and publications for GST/HST page or call 1-800-959-2221.

You must enter an amount on each line in Part J. Enter a zero if the amount for a line is nil or the line does not apply to you. Do not leave lines blank. If an amount is not reasonably ascertainable, you may use a reasonable estimate of the amount on lines 850, 851, 860, and 861 by ticking the grey box beside the line number.

Lines 850 to 852

Enter the value of supplies you made during the fiscal year that are covered under the group election(s) for exempt supplies as follows:

• If the consideration equals or is more than the fair market value, enter on line 850 the total of the value of the consideration for supplies made.
• If no consideration is charged or if the consideration is less than the fair market value, enter on line 851 the total of the fair market value for supplies made.

Add lines 850 and 851, and enter the total on line 852. It is recognized that this total may include estimated amounts.

Lines 860 to 862

Enter the value of supplies you received during the fiscal year that are covered under the group election(s) for exempt supplies as follow:

• If the consideration equals or is more than the fair market value, enter on line 860 the total of the value of the consideration for supplies received.
• If no consideration is charged or if the consideration is less than the fair market value, enter on line 861 the total of the fair market value for supplies received.

Add lines 860 and 861, and enter the total on line 862. It is recognized that this total may include estimated amounts.

Part K – Income allocation to various jurisdictions

Part K sets out your percentage of income allocated to a province, territory or sources outside Canada as provided for purposes of determining provincial income tax.

Lines 950 to 963

Complete lines 950 to 963 that apply to your financial institution’s income allocation to various jurisdictions. The total of lines 950 to 963 must add up to 100% of your income allocated to various jurisdictions. Place a tick mark for each province, territory, or source outside Canada under the heading “Indicate the jurisdiction(s) in which you carry on business.” Put the percentages of the income allocated under the heading “Percentage of income allocated to the jurisdiction.”

Part L – Certification

Every filer must complete this part. You have to sign and date the information return. If you have agreed to have some other authorized person sign the return on your behalf, you must have completed Form RC59, Business Consent Form, or have sent us a letter of authorization. To get Form RC59, go to our Forms and publications for GST/HST page.

Keeping records

Usually, you have to keep all sales and purchase invoices and other records related to your business operations and GST/HST for six years from the end of the year to which they relate. However, we may ask you to keep them longer than six years.

If you want to destroy your records before the time limit expires, you have to send us a written request and wait for our written approval to do so. Our auditors may ask to see your records.

How do you change a return?

If you need to make a change to a return you have sent in you can send a letter to your tax centre including your Business Number, the fiscal year of the Form GST111 to be amended, and the corrected amounts per line number on your Form GST111. Make sure an authorized representative signs the letter and includes the name and telephone number of a person we can contact if needed. If you prefer, you can file a new Form GST111, instead of sending a letter, and write the word “AMENDED” at the top of the return. The amended Form GST111 should contain all the correct information that was reported on the original Form GST111 as well as the amended/revised information and/or amounts and be sent to your tax centre.

For more information

Throughout this guide you will find references to other forms and publications.

If you need more information about Form GST111 or other technical GST/HST issues, go to our Goods and services tax/harmonized sales tax (GST/HST) page or call us at 1-800-959-8287.

To get forms or publications, go to our Forms and publications for GST/HST page or call 1-800-959-2221.

Teletypewriter (TTY) users

TTY users can call 1-800-665-0354 for bilingual assistance during regular business hours.

Our service complaint process

If you are not satisfied with the service that you have received, please contact the CRA employee with whom you have been dealing (or call the telephone number that you have been given). If you are not pleased with the way your concerns are addressed, you can ask to discuss the matter with the employee’s supervisor.

If the matter is not settled, you can then file a service complaint by completing Form RC193, Service-Related Complaint. If you are still not satisfied, you can file a complaint with the taxpayers’ ombudsman.

For more information, go to our CRA - Service Complaints page or see Booklet RC4420, Information on CRA-Service Complaints.

My Business Account

My Business Account is a secure and convenient way to access and manage your business accounts online.

You can:

• view your account balance and transactions;
• request additional remittance vouchers;
• file your return and view its status;
• calculate your instalment payments;
• view notices, letters, and statements;
• view address and banking information; and
• transfer payments and immediately view an updated balance.

Quick, Easy, Secure, For more information, go to our My Business Account page.

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If you have any comments or suggestions that could help us improve our publications, we would like to hear from you. Please send your comments to:

Taxpayer Services Directorate
Canada Revenue Agency
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