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For the GST/HST Tax Experts

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  • Apr 15th, 2017 7:52 pm
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Deal Addict
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Mar 9, 2012
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Kitchener

For the GST/HST Tax Experts

So....I feel like an idiot. For most of my life, basically until last year, most of my income was "self-employed".

Since my service earnings were more than $30,000/year, I have to collect, and submit, GST/HST. (I am in Ontario, so it's HST)

Well, somewhere along the line, when we went from GST to HST, I misread the PDF file from the CRA, which is, submission rate (for the Quick Method). So for the past 6 tax years, I've been submitting the rate in column 1, which was 10.5% (which is, earnings x 13% HST x 10.5%). I should have been doing 8.8%. I've already adjusted my 2015 and 2014 returns. Of course, I overpaid by a few thousands, but now those few thousands also turn into "Government Assistance". Also, they affect the CCTB, HST and Trillium benefits. Either way, I overpaid overall, so it's still a net gain for me.

That said, I was talking to a bookkeeper, he suggested only going 2 year back max, as if i go back further it will trigger a review. Since I technically am "employed" mostly, and not self-employed, I am wondering what are the experts thoughts on this? Most likely I overpaid by $8,000 all together. However, that means I understated my income by that amount, and was overpaid certain benefits during that timeframe. Again, it would mean a net benefit for me, probably at least $5-6,000. However, I don't want to trigger a review, just not worth the hassle.

Thoughts, anyone?
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Dec 27, 2009
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It sounds like you already answered your own question if you think it isn't worth the hassle. Personally I'd be willing to go through a bit of hassle for $5k, but you know your own situation better than anyone else does.
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Chickinvic wrote: It sounds like you already answered your own question if you think it isn't worth the hassle. Personally I'd be willing to go through a bit of hassle for $5k, but you know your own situation better than anyone else does.
Well, just an quick update, I changed my two HST returns for 2014 and 2015, last Friday. It was reassessed by Monday, so, yeah, about 1 business day. So I'm getting a rather large refund (about $1,400), which was the 1.7% difference.

That said, they're mailing a cheque!!! I'm already set up for direct deposit for everything else.

Anyway, since I moved over from mostly self-employed in 2015 to only partially in 2016, the refund pay for almost all the 2016 HST I owe. Easy come. Easy go.
Now I have to adjust returns, and they only allow adjustment at a time, so this is going to be a headache. Soooo...unsure if I will go back further, because if I do, I'll be checking my assessments and re-assessments for the next 18 months or so. Plus changes to the CTB, HST, Trillium. I am leaving this. I got my money for HST for 2016 tax season, so that'll be that. I'll take the advice of my buddy and not go back further. (although I can't go back many more years anyway, refund owing if I added the rest is $2,000) Imma idiot....

At least for 2017, I still have some self-employment, but the total is less than $300 owing in HST minus ITC, which is $300.
Why can't we all just get along?
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Nov 19, 2004
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That is a tough one. It sounds worth it, but then going back and changing your income tax returns for each year is going to be a pain. You will owe money for income taxes and repayment of any benefits and credits received for each year. But as you mentioned the net gain could be worth it.

I'd consider it as long as your records are in great shape for all those years. Chances are this will trigger requests for additional information as they review your returns.
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Mar 9, 2012
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don242 wrote: I'd consider it as long as your records are in great shape for all those years. Chances are this will trigger requests for additional information as they review your returns.
Yes, that would be the issue. Not wanting to trigger a review. I've been honest with my income, but the records aren't as good as they should be, namely, I didn't keep an accurate DVI.

The bookkeeper recommended just doing two years back. So that's what I'm doing. Funny thing, well, not so funny, those other years I didn't get any benefits, so benefit repayments wouldn't be an issue. Just the income tax needs to be changed.
Why can't we all just get along?

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