Video: Canada Revenue Agency

businesses are in charge of deducting ___ from employees:

- canada pension plan -Employment insurance -Income tax

Def of a business for income tax purposes

- for income tax purposes: a business you intend to continue on for profi

penalties and interest

- interest is charged on unpaid taxes - penalties: late filing penalty (5% of balance owing), failure to report all income, gross negligence (50% of the tax), penalty for not deducting, not remitting, gst/hst penalties, interest charged on late, overdue or forgotten reporting. interest also charged on the penalty cost.

how to keep track of records

- keep every receipt, invoice, slips etc. -always keep proof of purchase keeping track of sales: -invoices keep all documents in an organized and sysematic way

Electronic services

- mypayment: allows individuals or businesses to make payments to the CRA online. - mybusinessaccount: business owners can access their payroll, gst/hst, taxes, program accounts, view account balances and file returns - myaccount: sole proprietors are able to view your T1 return, check the status of your assessment and view your notice of assessment and adjustments

who is required to keep accurate records?

- persons carrying on a business or engaged in a commercial activity - persons who are required to file a GST/HST return - persons who make an application for a rebate or refund

dates to remember

- your payment and return due dates - the length of time you have to retain books and records - your fiscal year end - your instalment payment dates

Program accounts

Different types of CRA accounts you may need to register for depending on business activities (payroll, gst, hst..etc)

gst/hst

businesses collect and distribute gst/hst to the gov.

Partnership

does not pay income tax on its operating results. each partner includes a share of the partnerships income or loss on their T1 form. Financial statements are needed.

Personal assets that you want to transfer to your business (Sole Prop)

income tax act requires you transfer these assets that their fair market value

do all businesses need a BN or a CRA program account?

not all businesses need a BN or a CRA program account

registering your business

obtaining a business number (BN), first step to doing business with the CRA.

Sole Proprietorship

pay taxes by reporting your income on a T1 return. It includes personal and business together. Need financial statements as well.

zero rated supplies

supplies that are taxable at zero %

input tax credits

to recover the GST/HST payable from the goods /services that are imported into canada for use consumption or supply

small supplier

up to $30,000 in worldwide taxable supplies made by you in a single calender or in four consecutive calender quarters

registering for gst/hst

yes if you have taxable supplies and are not a small supplier

exempt supplies

you dont charge gst/hst on these goods