Basic tax content formula

We have simplified the basic tax content formula to accommodate most registrants. It may not apply to some registrants such as selected listed financial institutions.

Basic tax content formula:

(A - B) × C

A is the GST/HST payable on the property when you last acquired it, plus any GST/HST payable on improvements to the property;

B is any rebate or refund of GST/HST you were entitled to receive on the property (not including ITCs);

C is the lesser of:

• 1; and
• the fair market value of the property at the time of the change in use divided by the cost when you last acquired the property and the cost of improvements to the property.

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants