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.
|
I'm sure.
Businesses do not pay PST and GST on a percentage of their sales. They account for GST/PST at a transactional level, recording what they collected in sales taxes and, if eligible, deducting sales taxes they have paid.
Money that you collect on behalf of a government is not revenue.
Debit Cash $105
Credit Sales ($100)
Credit GST/PST Payable ($5)
The collection of sales taxes would not occur without a purchase of any goods or services, so the Flames situation is not an exceptional case.
And I understand that a ticket tax is not HRR but that is because it is a TAX, not simply a way for the Flames to divert a revenue stream.
Again, just like the airport taxes it is collected, on behalf on the taxing authority, from the users. Airlines do not record these fees as revenue, or as their own contribution towards airport improvements.
I hope that helps clear things up.
Sent from my Pixel XL using Tapatalk