HST Account Traps

This is a common area for mistakes.  HST is more complex than you think, and what you don't know will hurt you.

Last week I talked to a contractor who retired and closed his HST account.  CRA sent him a confirmation letter but he didn't know what they meant by "remember to include the tax you are considered to have collected on the disposition of capital property in your net tax calculation on your final return". It means that he now has to payback CRA thousands of dollars in HST he claimed on his new truck last year.

Or there's the owner who registered their HST account for calendar quarterly filings even though their fiscal year end is August.

Or there's the physiotherapist who closed his HST account mid year because that service is no longer taxable.  CRA then required his final return within 30 days, rather than 90 days and now he's facing late filing penalties.

So please don't open, close, or change your HST account, or calculate your first remittance without talking to me.

If you want a firm that does more than just count your winnings and file your taxes, that’s us.

I'm Ted Maclean and I do tax so you can relax!

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