Monthly Archives: June 2011

Bottom Line HST Impact on Purchases for Business in BC

Example: Purchase of a computer on or after July 1st 2010    

Small Retail Business

Medical Practice

Current GST Rules

New HST Rules

Current GST Rules

New HST Rules

1,000.00

1,000.00

1,000.00

 

1,000.00

70.00 PST

 

70.00 PST

 


50.00 GST


120.00 HST


50.00 GST

 

120.00 HST

Net Amt including tax 1,120.00

Net Amt including tax 1,120.00

Net Amt including tax 1,120.00

Net Amt including tax

1,120.00

Input tax credit (50.00)

Input tax credit (120.00)

   

Net Cost to entity 1,070.00

Net Cost to entity 1,000.00

Net Cost to entity 1,120.00

Net Cost to entity 1,120.00

 

Savings (Cost)

70.00

 

0.00

 

0.00

Bookkeeping for Non-Deductable Fines

In Canada, a parking fine, seat belt fine, towing fine,
overweight or over-length truck fine or other general fines are non-deductable. The company can expense it; however is unable to claim it as a business expense for tax purposes. It would be best to create a non- deductable fine account to post any fines to. This way the accountant can take the dollar amount off the profit or loss when doing the tax return at year end.

 

Dianne Mueller CPB Certified Professional Bookkeeper

www.simplysoma.com