GST/HST Solutions

Most NPOs do not need to register for GST/HST but if they having taxable supplies in excess of $50,000 during the fiscal year and in excess of $250,000 in revenue from all sources then the NPO may be required to register and collect GST/HST. Be careful that you are dealing with taxable supplies and not exempt.

If an NPO is not a registered charity then a corporate tax return needs to be completed annually even though the corporation is exempt from tax. We can help complete the tax return while protecting your tax exempt status.

If you are a charity, you are eligible to file a GST/HST Public Service Bodies rebate every 6 months in order to recover the Federal and Provincial portions of the GST/HST the charity paid on expenditures. NPOs are eligible to recover GST/HST as well if greater than 40% of their income is received from government sources (or 40% of their income on average over the past three years).

Many organizations fail to record GST/HST properly in their recordkeeping. Please seek advice on recovering GST/HST on your capital expenditures, mileage reimbursements and other areas commonly overlooked.

All registered charities in Canada must file a T3010 Registered Charity Information Return within 6 months of its fiscal year end otherwise Canada Revenue Agency could de-register the charity. To avoid such penalties, be proactive and prepare financial statements along with organizing all required information throughout your fiscal year.

Not all NPOs are required to file the T1044 Non-Profit Organization Information Return but if incorporated, not a registered charity and either of the following conditions applies then it must be filed within 6 months of their fiscal year-end, otherwise stiff penalties apply. The conditions include earning interest, dividend and other investment income in excess of $10,000 in the year or the organization has total assets in excess of $200,000 in the prior year.