The Department of Finance has released proposed changes to the Harmonized Sales Tax (HST) rules for financial institutions relating to the calculation of the provincial component of the HST.

“The proposed changes are intended to provide for a level playing field for financial institutions in terms of where they locate or where they purchase their business inputs, and result in the appropriate amount of tax collected for HST provinces,” the department said in a release.

The changes are designed to ensure that the federal Excise Tax Act and its regulations function properly in the context of the modernized HST Framework, which gives additional flexibility to provinces in areas such as variable rates of the provincial component of the HST under the Provincial Choice Tax Framework Act.

Finance also outlined proposed transition rules for the implementation of the HST in Ontario and British Columbia on July 1.

Comments on these proposals should be submitted by June 9.

IE