Can someone tell me how exactly taxes , hst, is paid back to the government?
so one of my family members has a small business.
his accountant said he owed around 19,000 in taxes. he pays through those remittence voucher things but by the end of the year the accoundant said it wasnt enough and owes practically half more.
im not an expert nor is he and his accoundant is away till next week so im hoping i can maybe help clear things up.
HSt is 13%, so assuming you had sales/revnue of 50,000 for example, im assuming the amount owed as taxes would be 6500 on that amount.
in ordere to pay 19,000 in taxes to the revnue aaency, his sales (assuming everything was taxed) would be around 150,000. but hes no where NEAR that.
Am I missing something or are there other factors invovled?
i know information still a bit vague but if any of you have more experience with this that can shed some light, that would be great or even provide an example.