FIN 305 Chapter Notes - Chapter 9: Harmonized Sales Tax, Canada Revenue Agency, Canada Pension Plan
14 Nov 2016
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3 main taxes that affect small businesses in canada: sales taxes (hst, payroll deductions & burden", income taxes. Use money to pay for gov. "t services. Taxes are designed to be levied, or charged, in 2 primary ways: broad/universal (ie. income tax, specific/user (ie. sales tax, fuel) To most goods, services and property in canada incl. ing big ticket items ie. cars, business machinery. Many provinces joined harmonized sales tax aka hst. Other provinces: charge separate pst on top of federal gov. t"s gst of 5% Ultimately payable by the end-user, but gov. t"s have a system that allows them to collect taxes sooner. Think of gov. t as k/s: they want cf asap!! (their objective) Hst collected/paid by registered busi. at each step of commercial value chain, so net remittance is the value added on by the business itself selling it. Business collects hst from the customer on the sp.
