The Canadian Revenue Agency has began to judge the “hefty penalties” regarding the GST/HST annual information return that many large businesses and financial institutions in Canada are needed to report. The penalties (which can be as high as $100,000* per return) can be applied in case of the failure to file a return, filing late, and misreporting amounts on the return.
Financial institutions and many large businesses that do not come under the ordinary definition of a “financial institution” must file form GST111, Financial Institution GST/HST Annual Information Return (the annual information return). Eligible entities have to file this return if they are GST/HST registrants with an income of more than $1 million per year.
