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What is the purpose of the financial acquisitions threshold?

April 26, 2017acquisitions financial purpose threshold

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What is the purpose of the financial acquisitions threshold?

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The purpose of the financial acquisitions threshold is to allow entities that make a relatively small amount of financial supplies as compared to their taxable supplies or GST free supplies, to claim full input tax credits relating to those financial acquisitions. If you do not exceed the financial acquisitions threshold, you will be entitled to full input tax credits for your acquisitions relating to financial supplies.