Personal Finance

GST Return Small Business

  • Last Updated:
  • Apr 30th, 2020 7:04 pm
[OP]
Newbie
Apr 26, 2020
11 posts
13 upvotes

GST Return Small Business

Back is 2014 I've registered a small business, sole proprietorship, and got a gst number. I've ended up working for my parents company and never did anything about that small business.

Fast forward to 2020 and after filing my taxes and being assessed with a refund I got a notice that my refund is being held. I've called CRA and it turns out that gst number was active until November 2019 and since I never filed GST returns they did it for me to the tune of over 20,000 total since 2014.

I just filed gst returns online for 0 balance since I've never collected gst or operated this business.

Anyone has any experience with this? So once they assess (says received for now) gst returns they'll change balance to zero and process my personal tax refund and send it? Any idea how long it takes for gst assessment (I've filed all 6 today)? Is this automatically done or after gst assessment I'll have to contact cra to release my tax refund?

How do they even estimate and file on my behalf (they put between 2500 and 4000 yearly as amount owing)..
9 replies
Newbie
Aug 12, 2017
22 posts
9 upvotes
Yes, the CRA determined an amount owing based on some formula they have.

No worries, since you have filed all your past returns, they will eventually fix things up, and you will get your personal tax refund. I have seen in my work in public accounting completely random figures that they use, that have no basis in any facts.

Sometimes our firm will drop off a letter at the local CRA office indicating if the company was inactive and that there were no sales/ITC's to be claimed. Seems to work.

Good luck, normally it gets cleared up within 6-8 weeks, however, no idea how long it will take these days.

Cottager
[OP]
Newbie
Apr 26, 2020
11 posts
13 upvotes
Thanks for the reply. If I call them again to say I've filed all gst returns would it speed up assessment? All 6 returns are simple nil returns. It's just frustrating because it's holding my refund from being deposited..

Also, after gst returns are assessed do I need to call cra so they direct deposit my personal tax refund or that hold will be released automatically and direct deposit sent?

Thanks!
Jr. Member
Apr 16, 2020
129 posts
197 upvotes
If you paid expenses related to the business (setting it up, annual filing, etc.) you may actually be missing out on ITCs that you can claim.
[OP]
Newbie
Apr 26, 2020
11 posts
13 upvotes
I've only registered the business and got gst number, that's all. GST number has been closed now but basically until they finish assessing gst return I'm not getting my personal tax refund.
Penalty Box
Jun 24, 2015
4704 posts
1386 upvotes
0 downvotes
if they're going to process it and change your amount owing to Zero, then you have nothing to worry. Otherwise a quick call to them should suffice. Another good tip for others on here, if you register a GST account number, but do not have any business activity, then make it a habit to put aside ONE day per calendar year to file a NIL remittance. If you determine you opened the business and realized it's not for you, simply request to close it, its a quick phone call.
Hi
[OP]
Newbie
Apr 26, 2020
11 posts
13 upvotes
Definitely good advice, it took me 5 min to file 6 nil reports, if I did it regularly I would've had my tax refund already. Anyone knows how long it usually takes to have gst filings assessed?
Jr. Member
Oct 8, 2019
135 posts
81 upvotes
DarMo087 wrote: Definitely good advice, it took me 5 min to file 6 nil reports, if I did it regularly I would've had my tax refund already. Anyone knows how long it usually takes to have gst filings assessed?
It usually shows up online after a few days. Cra will automatically issue u ur personal tax refund after without u having to follow-up. Also, if u dont have any intention of using ur gst number, just close it unless you want to continue filing nil returns.
[OP]
Newbie
Apr 26, 2020
11 posts
13 upvotes
Thanks, I filed them yesterday (Monday) so they should be assessed this week?

Cra already closed my gst number, I guess after6 years they do it automatically.
[OP]
Newbie
Apr 26, 2020
11 posts
13 upvotes
Here's an update. So this morning when I logged in cra my business account it showed that one of the gst filings, for 2019, was assessed. Nil return, zero balance. The other 5 still show Received.

Should I assume the others will be assessed soon too?

Also, I tried to check the total balance, to see that 2019 automated cra assessment amount is removed, but now I get an error when I try to see the balance. Being updated I guess?

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