07-27-2016, 12:20 PM
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#1
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Powerplay Quarterback
Join Date: Aug 2005
Location: N/A
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Business Tax Question
My google-fu is failing me  and I was hoping this is an easy answer for one of you accounting types on a lunch break:
If charge a customer $100 for something and have to pay the government GST ($5), do I pay corporate tax on my $100 revenue or $95 revenue, net of sales tax?
Thanks.
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07-27-2016, 12:27 PM
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#2
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Franchise Player
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If you charge the customer $100 for something, they're supposed to pay you $105, of which $100 is revenue and $5 is in trust for the government...
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07-27-2016, 12:28 PM
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#3
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First Line Centre
Join Date: Oct 2010
Location: Deep South
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Neither.
You charge $100 and add on $5 GST. The customer pays your $105, and you send that extra $5 off to the government. Then you are taxed on that $100.
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07-27-2016, 12:39 PM
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#4
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Backup Goalie
Join Date: Oct 2011
Exp: 
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If your sales price is $100 before 5% GST, you charge $105 to the customer. You remit $5 GST to the government and report $100 of revenue.
If the total charge is $100 and you have to remit GST, then you remit $4.76 to the government and report $95.24 of revenue.
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07-27-2016, 12:54 PM
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#5
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Powerplay Quarterback
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Wow - lots of wrong answers in this thread...
The correct answer is that you must remit 45.5% of your revenue - whatever the highest number is that you can support - directly to me, in cash.
Contact info available via PM. Do not delay - penalties and interest are already accruing!
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07-27-2016, 12:56 PM
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#6
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Franchise Player
Join Date: Mar 2007
Location: Income Tax Central
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Oldie but a goodie.
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07-27-2016, 01:40 PM
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#7
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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Quote:
Originally Posted by BigNumbers
Wow - lots of wrong answers in this thread...
The correct answer is that you must remit 45.5% of your revenue - whatever the highest number is that you can support - directly to me, in cash.
Contact info available via PM. Do not delay - penalties and interest are already accruing!
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I'll accept iTunes gift cards!
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07-27-2016, 01:45 PM
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#8
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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All the answers are wrong, btw. You remit net GST, that is the difference between the GST you collected and the GST you spent.
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07-27-2016, 01:52 PM
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#9
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Franchise Player
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Quote:
Originally Posted by Shazam
All the answers are wrong, btw. You remit net GST, that is the difference between the GST you collected and the GST you spent.
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This is wrong... that's not how ITC's work.
WE'RE ALL WRONG ABOUT EVERYTHING YOU GUYS
__________________
"The great promise of the Internet was that more information would automatically yield better decisions. The great disappointment is that more information actually yields more possibilities to confirm what you already believed anyway." - Brian Eno
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07-27-2016, 01:53 PM
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#10
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First Line Centre
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####ing Accountants!!!
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07-27-2016, 01:54 PM
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#11
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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Quote:
Originally Posted by CorsiHockeyLeague
This is wrong... that's not how ITC's work.
WE'RE ALL WRONG ABOUT EVERYTHING YOU GUYS
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Yes, yes, it's a bit more complicated. But fer crying out loud don't just simply send in what GST you get in as you'll never get back any money owed.
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07-27-2016, 01:57 PM
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#12
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Franchise Player
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Huh? If you over-remit GST you can get back the excess. Or you can just apply the ITCs on a going forward basis. I'm not a business accountant but that's more of a cashflow problem than anything else. Anyway, just by bringing ITCs into it you've made a really simple question needlessly complicated.
__________________
"The great promise of the Internet was that more information would automatically yield better decisions. The great disappointment is that more information actually yields more possibilities to confirm what you already believed anyway." - Brian Eno
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07-27-2016, 02:04 PM
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#13
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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Getting back money for overpaying is nigh-impossible these days. At best they'll credit you for the next cycle.
I over-paid my payroll, the only thing they would do for me was put the overage to next year's payroll.
Yeah you're not a business accountant. This is a somewhat common problem, this is why your accountant is supposed to tell you to be very careful when making payments. Also if you pay the wrong account, tough ####.
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07-27-2016, 02:13 PM
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#14
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Franchise Player
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I'm fairly certain that the ETA has a provision that allows you to apply for a return of tax paid in error, though. Granted, it's probably a bureaucratic nightmare and so it's good advice just to not screw up in the first place but I'm pretty sure you can get the $ back if you use the right procedure.
EDIT: Box 1C.
http://www.cra-arc.gc.ca/E/pbg/gf/gst189/gst189-14e.pdf
__________________
"The great promise of the Internet was that more information would automatically yield better decisions. The great disappointment is that more information actually yields more possibilities to confirm what you already believed anyway." - Brian Eno
Last edited by CorsiHockeyLeague; 07-27-2016 at 02:16 PM.
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07-27-2016, 02:17 PM
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#15
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Franchise Player
Join Date: Aug 2005
Location: Memento Mori
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Well that's nice, yes in fact there are forms you can fill for certain very specific error situations and perhaps they may give you a credit after a very long time.
The CRA will never, ever cut you a cheque for remittance errors that were your fault.
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