FIN 305 Lecture Notes - Lecture 17: Remittance, Cash Flow, Capital Cost Allowance
5 Nov 2016
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Fin 305 17: impact of taxation on small business. 3 main types of taxes that impact small biz: sales taxes (hst, payroll deductions/burden, income taxes. For costs of gov"t services - education, transit, healthcare, infra, etc. Broad/universal (all citizens pay it, like income taxes are paid by both individuals and corporations) Specific/user (sales, tobacco, fuel, road tolls - paid by entities that use particular good/service) Tax on consumption/use of goods/service - paid for by ultimate consumer aka end user. Includes big items like cars, machines, biz equipment. Rates: 13% on, nb, n&l; 14% pei; 15% ns. Other provinces charge a separate pst, while fed charges gst 5% It"s ultimately payable by the end user, but this system allows gov"t to collect sooner. Some portion of tax is paid @ every stage of distribution chain. Govt as khs - same objective: get cash flow asap. Hst collected and paid by registered businesses @ each step in commercial value chain.
