COMMERCE 4SB3 Lecture Notes - Lecture 5: Dofasco, Maytag, Passive Income
18 Oct 2018
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Pote(cid:374)tiall(cid:455) (cid:448)aries i(cid:374) ca(cid:374)ada depe(cid:374)di(cid:374)g o(cid:374) (cid:449)hi(cid:272)h pro(cid:448)i(cid:374)(cid:272)e (cid:455)ou"re i(cid:374) Harmonized sales tax in ontario; 5% goes to federal and 7% goes to province. Vat (value-added tax)- as produ(cid:272)t (cid:373)o(cid:448)es through (cid:272)(cid:455)(cid:272)le, there"s ta(cid:454) added alo(cid:374)g the process. Hst is the end-user"s lia(cid:271)ilit(cid:455) si(cid:374)(cid:272)e the (cid:272)o(cid:374)su(cid:373)er pa(cid:455)s for it at the e(cid:374)d. Bob has no costs and collect pallets, dofasco buys them for 100 +hst. Bob keeps and remits to the government. Government pays (cid:271)a(cid:272)k to dofas(cid:272)o so the(cid:455)"re (cid:374)ot out of po(cid:272)ket. Dofas(cid:272)o (cid:373)akes (cid:272)hu(cid:374)k of steel a(cid:374)d sells to a(cid:374)other company. Dofasco is owed back but since they made a sale of with hst, they owe. When they file hst return, only write cheque for since they have credit for . Maytag is owed for paying for that steel. Maytag makes washer and sells for + . Maytag owes to government and gets credit.
