B.C. Finance Minister Kevin Falcon has announced that the PST will be reinstated at 7%. The transition period is expected to take a minimum of 18 months, during which the provincial portion of the HST will remain in place at 7%. The B.C. government noted that it may make some “common sense” administrative improvements to streamline the PST. [Click on Pic to learn more]
Finance Minister, Kevin Falcon has confirmed that one of the first orders of business will be for the provincial government to negotiate a deal with the federal Government to extricate itself from the HST, possibly without the repayment of the full $1.6 billion incentive payment. Secondly, the Government will need to decide whether to reinstate the PST in its previous form or make some changes, perhaps reducing exemptions or expanding the tax base. [Click on Pic to learn more]
Game Company has just signed a large contract to sell 1000 of their games to a retailer in Manitoba. They need guidance regarding what rate of tax to charge. [Click on Pic to learn more]
In this instance, the owners are asking why they must pay 13% HST on the purchase of their boxes from Ontario. They thought that since they were located in Alberta, that they should only have to pay 5% GST. They also expressed concern about whether they can claim an Input Tax Credit (ITC) if they pay tax at a different rate than5% and if they need to report this on a separate return? [Click on Pic to learn more]
In addition to the introduction of HST in B.C. and Ontario, Canada Revenue Agency (CRA) introduced a number of other changes that affect taxpayers all across the country. One of the more significant changes was with regards to the Place of Supply Rules. The Place of Supply rules are necessary to determine the appropriate rate of tax to charge. [Click on Pic to learn more]
This in-depth analysis of Ontario’s proposed Harmonized Sales Tax (HST) shows the tax is virtually revenue neutral when viewed as part of a total tax package that includes increased sales and property tax credits and a significant decrease in personal income tax rates. [Click on Pic to learn more]
The report, titled “Sales Tax Harmonization in Manitoba: What it would mean for households, businesses and public finances”, found that implementing a harmonized sales tax (HST) in Manitoba would impose $405 million in additional sales taxes on families. [Click on Pic to learn more]
