Offsetting of Tax to be Remitted

A group of closely related corporations (This link will open a new window) can elect to offset, in whole or in part, the tax that one of the corporations is required to remit by a refund or rebate to which another member of the group may, at that time, be entitled.

This election allows a qualifying corporation to:

• apply a GST refund or rebate to a GST debt
• apply a QST refund or rebate to a QST debt

However, the following conditions must be met:

• Each corporation of the group must be a GST registrant resident in Canada to be eligible to offset the GST, or a QST registrant resident in Québec to offset the QST. 
• Each corporation of the group must be closely related to each of the other corporations in the group.
• The members of the group of closely related corporations must designate one of the corporations as the co-ordinator corporation for the group.
• The closely related corporations must adopt the same reporting period.

To make this election, the group of closely related corporations must file the Application to Offset the GST/HST by a GST/HST Refund or Rebate (FP-303-V) and the Application to Offset the QST by a QST Refund or Rebate (VD-442.S-V).

Businesses that are required to file their tax returns online must do so for all reporting periods ending on or after July 1, 2010.

The election cannot be made using the online transmission service of financial institutions.