Quote:
Originally Posted by New Era
Are you sure on this? Doesn't this break down to gross revenues versus net revenues? The Flames sell a ticket, and that becomes revenue to them, every single dollar. They are expected to collect every dollar, but then deduct associated taxes, which along with business costs, leads to net revenues. This is also why HRR are clearly defined in the CBA, and taxes on tickets are not defined as HRR. Yes, this is one of those semantics arguments, trying to define what "sex" is, but it is the reality of the claim. The collection of the revenue would not exist without the ticket there in the first place, nor the transaction of selling the ticket and collecting the revenue. Just like gas taxes, the retailer has to collect and submit them. They are submitted based on revenues collected, so are part of the gross revenues of the business. Please correct this if any of it is inaccurate.
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If it is anything like when I was collecting GST for services, then the tax is a completely separate section of the balance sheet. Basically I was just collecting and holding onto the taxes received until it was time to declare the amount and send it onto the CRA...at no time was it considered revenue or expense.