Exam 22: Gsthst Overview

Sam began a small seasonal business in Prince Edward Island on July 1st, 20x7. He began operations slowly during the off-season, prior to a larger sale between October and March. Sam's sales of taxable supplies per quarter for the first fifteen months are provided here: Required: Apply the 'sales in quarter' and 'cumulative sales' tests to determine when Sam was required to become an HST registrant. Show your calculations and answer the following: A. When did Sam lose his small supplier status? B. What date was Sam required to start collecting HST? C. By what date was Sam required to become an HST registrant?

Green Co. earned $20,000 in revenue and paid $15,000 in expenses (that do not include meals and entertainment). How much GST will Green Co. remit using the simplified ITC calculation? (Green Co. is in a province with 5% GST.)

Blue Co. earned $80,000 in revenue and paid $45,000 in operating expenses. If Blue Co. elects to use the quick method, how much is the net HST remittance? (Blue Co. is in a province with 13% HST and an 8.8% remittance rate.)

Jordan was required to pay her own employment expenses in 20x0. The expenses deducted on her tax return totaled $12,000 which included $2,000 CCA. The expenses all included a 15% HST component, other than the CCA which had a deemed inclusion since HST was originally paid on the vehicle. If Jordan applied for an HST rebate in 20x1 when preparing her 20x0 tax return, what impact would the rebate have on her 20x1 tax return?

With respect to GST/HST, supplies fall under different categories with different sets of rules.