Elections (not the political kind)

Sometimes you get what you ask for. And sometimes you don’t get unless you ask. And sometimes you don’t even have to ask.

In the world of taxation, there are certain elections which an organization may file which can affect the administration of the GST/HST, synchronize business activities and fiscal periods, change reporting periods or even make certain sales taxable or certain supplies taxed at a lower rate.

Typically, organizations must file a form or a written statement with the appropriate agency.

In certain situations, however, no notice is required and a copy of the election form or a even a written statement containing prescribed information can be kept on record.

Yes, that’s right. In some situations supplies which would otherwise be taxed and non recoverable, can be shifted, via the magic of paperwork to being taxed at a reduced rate or completely recoverable.

Is it simple to explain every situation in which these rules apply? Absolutely not.

Do these rules apply to your organization? Definitely, maybe, possibly, perhaps.

We call exploring this issue going “down the rabbit hole”, a metaphor for adventure into the unknown, from its use in Alice’s Adventures in Wonderland.

Having over 30 years of experience in exploring these areas, we’d be happy to provide guidance on what your organization can do and save you the headache of going down the rabbit hole.