What is a trust examination?
During trust examinations, the CRA will review only a business’ GST/HST and payroll remittances.
How far back can the CRA go in conducting a trust examination audit?
Trust examinations generally involve one-to-two years, unless HST or payroll has not been filed, in which case they often cover all periods with unfiled returns.
Do small businesses have to charge GST/HST?
Businesses that have not had previously had a four-quarter period in which they had sales of over $30,000 generally do not need to register for and collect/remit GST/HST, as they may be small suppliers.
What is an input tax credit?
An Input tax credit allows the taxpayer to recover the GST/HST paid or payable for property or services they acquired, imported into Canada, or brought into a participating province for use, consumption, or supply in the course of their commercial activities.
How much do I have to pay in GST when importing goods into Canada?
An importer must pay GST/HST on imported goods, which are subject to the federal GST, which is calculated at the rate of 5% of the duty-paid value of the shipment.
Do I have to remit GST/HST if I have not received payment for a service?
The date of the invoice will determine when you need to report and remit (pay) the GST/HST you charge. For the reporting period that includes the date of the invoice, your return should include the GST/HST you have charged, whether or not you have received payment.
When is GST/HST payments due?
At the end of each reporting period, you need to: complete and file a GST/HST Return and remit the net amount of GST/HST. The GST/HST return will show your due date at the top of the form. Annual filers also generally need to pay installments on a quarterly basis.
What are the penalties for not remitting GST/HST?
Common penalties include for failures to file and for inaccurate statements in returns. Interest will be charged if you make late or insufficient payments. Arrears interest is charged on the outstanding GST/HST that is owing. The interest rates on overdue and overpaid remittances is 6% compounded daily quarterly. Interest on the part of any installment payment that was not paid or that was paid late will be charged at the end of the fiscal year.
Do I have to remit GST/HST on employee benefits?
Employers generally need to remit HST on non-cash benefits provided to employees, such as passenger vehicles or aircraft, subsidized meals, payment of membership dues, trips, vacations, and gifts. Employers may be able to claim offsetting credits.
