Entrepreneurship & Small Business

Taxation - answering any questions here

  • Last Updated:
  • Oct 15th, 2019 9:41 am
Newbie
Nov 2, 2018
2 posts
Hi Phillip. I have a corporation and charge and remit HST as per normal. My wife also has a separate small business but doesn’t sell enough services to warrant HST. She doesn’t have a separate bank account. Questions:
A. Can I record her handful of sales into the corporation bank account and into the corporation books and treat as a separate business
B. If I include her sales per A., would she need to be charging HST since it is recorded as a corporation sale.

I may just leave her business as a sole proprietor to keep things simpler but was exploring ways to obtain a better tax position overall which has more expenses at this time.

Thanks.
[OP]
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Oct 30, 2017
171 posts
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Ottawa, Ontario
AntLor wrote:
Nov 23rd, 2018 7:55 am
Hi Phillip. I have a corporation and charge and remit HST as per normal. My wife also has a separate small business but doesn’t sell enough services to warrant HST. She doesn’t have a separate bank account. Questions:
A. Can I record her handful of sales into the corporation bank account and into the corporation books and treat as a separate business
B. If I include her sales per A., would she need to be charging HST since it is recorded as a corporation sale.

I may just leave her business as a sole proprietor to keep things simpler but was exploring ways to obtain a better tax position overall which has more expenses at this time.

Thanks.
A. Yes, a corporation/company can have different kind of division. but she has to somehow link to your corporation/company. For example, you can employ her as a staff and pay her salary. Or you can issue her shares, if you have a corporation..
B. if she earns income under your corporation, yes she will need to charge HST.
thank you very much
Philip Kwok, CPA, CGA
[OP]
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Oct 30, 2017
171 posts
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Ottawa, Ontario
heatherstreet wrote:
Nov 22nd, 2018 8:38 pm
I had a quick question. If I sell software online into the United States -- and under the new 2018 Supreme Court ruling I have to collect sales taxes for the various states -- can I write off that sales tax as an expense / can I lower the amount of income my software is sold for?
As in if I sell something for 100, now pay 10 in sales tax to Washington state, is my income from CRA's perspective 90 dollars or the full 100?
Hi, if you collect sale tax, how can it be an expense? I am not sure if I understand your question here.
if you need to collect sales tax for some states, you will remit them to that states, therefore, these amounts are your expenses.
for Canada, it is only the HST that you need to remit to CRA, not the sales tax you collect related to other country.
thank you very much
Philip Kwok, CPA, CGA
Newbie
Dec 6, 2018
6 posts
Quick question. For inc, a GST account is required if canadian sales are over $30k as stated on the cra site.
my corp have under 30k sales in canada but over 30k sales outside of canada.
cra over the phone told me that i need to register a GST account because total sales are over 30k.

why is cra telling me that gst account was required even though my canadian sales are well below the 30k mark?
Deal Guru
Aug 2, 2010
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Here 'n There
beansbeans wrote:
Dec 7th, 2018 11:54 pm
Quick question. For inc, a GST account is required if canadian sales are over $30k as stated on the cra site.
my corp have under 30k sales in canada but over 30k sales outside of canada.
cra over the phone told me that i need to register a GST account because total sales are over 30k.

why is cra telling me that gst account was required even though my canadian sales are well below the 30k mark?
Because it's based on revenue not just revenue that you must charge GST on.
Newbie
Dec 6, 2018
6 posts
So when my accountant tells me "no, you do not need a GST account" even when I quoted what the CRA told me, it should be a red flag to look for a new accountant?
Deal Addict
Mar 3, 2018
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beansbeans wrote:
Dec 8th, 2018 6:51 pm
So when my accountant tells me "no, you do not need a GST account" even when I quoted what the CRA told me, it should be a red flag to look for a new accountant?
You may also want to register so that you can claim back the GST you paid on your expenses and purchases. Your accountant should have been aware of that.
Newbie
Dec 6, 2018
6 posts
If I hire an accountant to do book keeping and year end, should I receive a copy of the ledger when every thing is done for that year?
Newbie
Apr 4, 2018
5 posts
Hey there. I’m in Ontario. Around Janauary, I signed up for Uber and Lyft because I had no job. Thankfully I got a job and I have never driven for any of these companies. I got a letter from the CRA today on how to file these ridesharing taxes. Do I just ignore this letter since I have never driven for them? Or what what I do?
Thanks
Deal Guru
Aug 2, 2010
14312 posts
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Here 'n There
legendarygringo wrote:
Dec 11th, 2018 11:46 pm
Hey there. I’m in Ontario. Around Janauary, I signed up for Uber and Lyft because I had no job. Thankfully I got a job and I have never driven for any of these companies. I got a letter from the CRA today on how to file these ridesharing taxes. Do I just ignore this letter since I have never driven for them? Or what what I do?
Thanks
It's probably worth the 5 min it takes to call them or send them a letter back saying you never drove just in case they keep hounding you, which they will if you do not file.
[OP]
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Oct 30, 2017
171 posts
41 upvotes
Ottawa, Ontario
beansbeans wrote:
Dec 8th, 2018 6:51 pm
So when my accountant tells me "no, you do not need a GST account" even when I quoted what the CRA told me, it should be a red flag to look for a new accountant?
if your revenue over the last 4 quarters are over 30000, then you need to open hst account. it is likely to benefit you since your Canadian revenue is so low, meaning that your HST charge is likely to be low and your Canadian expenses likely to be higher than Canadian revenue, therefore, when you file your HST return, you will likely to get a refund.
if you have more questions, please let me know. thanks
thank you very much
Philip Kwok, CPA, CGA
[OP]
Jr. Member
User avatar
Oct 30, 2017
171 posts
41 upvotes
Ottawa, Ontario
legendarygringo wrote:
Dec 11th, 2018 11:46 pm
Hey there. I’m in Ontario. Around Janauary, I signed up for Uber and Lyft because I had no job. Thankfully I got a job and I have never driven for any of these companies. I got a letter from the CRA today on how to file these ridesharing taxes. Do I just ignore this letter since I have never driven for them? Or what what I do?
Thanks
when you signed up Uber, did you earn anything at all? if yes, then you still need to file those income.
you never earn anything, you can simply call them and tell them that you never even earn any income and never will. they will put a note in the file for you.
thank you very much
Philip Kwok, CPA, CGA
[OP]
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User avatar
Oct 30, 2017
171 posts
41 upvotes
Ottawa, Ontario
Hey everyone, stay tuned for my update in 2019, I will try to summarize some changes for personal tax and give some guide for prepare your tax for 2018.
thank you very much
Philip Kwok, CPA, CGA
Newbie
Feb 9, 2016
89 posts
1 upvote
Hello I'm studying for insurance broker licence now. If I incorporate in the future, would my commission income get taxed at the lower rate?
[OP]
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Oct 30, 2017
171 posts
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Ottawa, Ontario
fbjin01 wrote:
Jan 2nd, 2019 2:22 pm
Hello I'm studying for insurance broker licence now. If I incorporate in the future, would my commission income get taxed at the lower rate?
Yes, that's correct. all the fees/income must paid to your corporation, and it will get tax at small business rate, ~~15%
thanks
thank you very much
Philip Kwok, CPA, CGA

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