Computer Programs - Ontario Retail Sales Tax Amendment

On July 19, 2002, the Ontario provincial government released new draft legislation related to the Retail Sales Tax ("RST") treatment of computer programs. The draft legislation is intended to simplify the taxation of computer software and IT services. The legislation includes new industry specific definitions which reflect the characteristics of the services provided by the IT industry. The current RST legislation will be in force until the new amendments are enacted, which is expected to be in the fall of 2002. When enacted, the changes will be retroactive to July 19, 2002. For a copy of the draft legislation, visit: http://www.gov.on.ca/FIN/english/acte-rst_sw.htm For a copy of a background information document from the Ministry of Finance, visit: http://www.gov.on.ca/FIN/english/bke-rst_sw.htm