Entrepreneurship & Small Business

Just realized a mistake in HST remittance

  • Last Updated:
  • Dec 5th, 2017 7:48 pm
[OP]
Newbie
Jun 19, 2017
9 posts
Toronto

Just realized a mistake in HST remittance

Hi Everyone,

Just got a question about HST remittance. Recently, we are under review by the CRA for HST remittance. Part of our business is to lease residential homes, our revenue is basically tax exempted due to that reason. However, I did not know that utilities and management fees that our company pay are also unable to claim HST credit. I found out after looking at our books and got suspicious of the transactions I entered, because previously we didn't have that much utilities or management fee. After google search, realized that those transactions were not suppose to be part of the ITC. Now we claimed extra ITC. What should I do and what to tell CRA?

Also, the recent review might be the 2nd one from CRA in a few months. I didn't know what trigger the first review (the previous accountant did all the remittances), but I think CRA did not adjust our HST remittance claim for the first review (I would've guess that everything was ok??). Due to my mistake, will it cause an audit on our company?

Please help give advise, thank you very much.
4 replies
Jr. Member
User avatar
Aug 15, 2015
171 posts
27 upvotes
Markham, ON
Do you think the tax man are really going to come knocking? Start making changes as soon as you notice the mistake so when they do come knocking, you can show that you corrected your mistake at the first opportunity.

You can seek professional advice too. Maybe what you were doing was correct. I am no accountant or business owner. I don't know this stuff.
[OP]
Newbie
Jun 19, 2017
9 posts
Toronto
Since we are currently under review, how can we make changes? I would've not claim ITC in the first place if I knew.
Deal Addict
User avatar
Mar 23, 2008
4951 posts
2445 upvotes
Edmonton
You're under review by the CRA, and you don't have an accountant that you can call? My advice is to get professional help. Not anonymous help off the Internet.

C
[OP]
Newbie
Jun 19, 2017
9 posts
Toronto
We do have professional help, just talked to the accountant, and the response was hopefully CRA won't see it. I thought the answer would be fix the problem and send it to CRA.

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