- BOOKS AND/OR RECORDS
Books and records are used to refer to
the various documents detailing your businesses income and
expenses. Usually, you have to keep all sales and purchase
invoices and other records for your business operations
and GST/HST for six years.
- BALANCE SHEET
A statement listing the total assets
and liabilities, indicating the net worth of the company
for the given moment in time.
- INCOME STATEMENT
A statement that summarizes revenues
and expenses for a period of time.
- PAYROLL OBLIGATIONS
As an employer or payer, you hold payroll
deductions in trust for the Receiver General. You have to
keep these amounts separate from the operating funds of
your business. You must deduct Canada Pension Plan (CPP)
contributions, Employment Insurance (EI) premiums, and income
tax from amounts you pay. You remit these deductions plus
your share of CPP contributions and EI premiums throughout
the year on your employee's behalf.
- SOLE PROPRIETORSHIP / PARTNERSHIP
A sole proprietorship is a non-incorporated
business entirely owned by one person that is run in the
hope of obtaining a profit. A partnership is usually the
relationship between persons who conduct a business in common
in the hope of obtaining a profit.
- SOLE PROPRIETOR (SELF-EMPLOYED)
You are a sole proprietor (self-employed
individual) if: your business is not incorporated; you have
sole responsibility for decision making; you receive all
profits and are responsible for all losses; and you report
your business income on a T1 Individual income tax return.
A corporation is a separate legal entity.
It can enter into contracts and own property in its own
name, separately and distinctly from its owners. It has
to pay tax on its income, and therefore must file its own
income tax return.
- WHAT IS GST/HST
Approved by the Legislature of British Columbia and the Parliament of Canada the harmonized sales tax (HST) is the single harmonized value-added tax that will replace the GST and PST in British Columbia on July 1, 2010.
The HST will apply at a rate of 12 per cent to those goods and services that are subject to GST
In other words, the PST will be eliminated and a 7 per cent provincial rate will be added to the 5 per cent GST. This 12 per cent combined tax will be called the HST.
Goods and services that are taxable under the GST will be taxable under HST, except for the items eligible for a point of sale rebate on BC’s portion of the harmonized tax. Although there is GST on these items, the B.C. portion of the HST will not apply (i.e., you will not pay the B.C. portion of the tax).
Nothing that is currently exempt from GST will be subject to HST. If you do not pay GST on an item now, you will not pay HST after harmonization. GST-exempt items will be HST-exempt and zero-rated items for GST purposes will be zero-rated under the HST.
- GST/HST FILING DUE DATES
If your reporting period is monthly or
quarterly, you have to file your GST/HST return and remit
any amount owing no later than one month after the end of
your reporting period.
If your reporting period is annual, you usually have to
file your return and remit any amount owing no later than
three months after the end of the fiscal year. If you have
to pay quarterly installments, they are due no later than
one month after the last day of each fiscal quarter.
If you are an individual with business income for income
tax purposes who is also an annual filer with a December
31 fiscal year-end, you have to file your return by June
15. However, any GST/HST remittance is due on April 30 and
must be remitted by that date to avoid penalties and interest.