GST and PST issues

As of July 1st 2010 the HST replaces the GST and PST on Ontario. Learn more here

GST Issues

GST is a Canadian sales tax which is applied to most, but not all, goods and services that are sold in Canada. The exceptions include insurance, interest and bank charges.

Simkover and Associates understand that there are many possible GST issues that companies (large or small) have to deal with. This becomes particularly important when companies are importing goods from a foreign country. This is because it becomes more difficult to determine:

• In which country the title is passed to the purchaser
• whether or not the supplier is considered a non-resident
• whether or not the non-resident is considered to be carrying on business in Canada

All of these factors, and more, must be considered in order for our chartered accountants to determine whether GST should or should not be charged at all and which party is liable to pay it.

GST is a refundable tax (many companies that pay it are eligible to have it refunded back to them at a future date.) If your company does not charge it to your customer when you were required to do so, the government will charge it to you instead. This charge can include interest and penalties on top of the GST payback. Therefore to avoid having unpaid GST charged to your company, hire Simkover and Associates to detect all payable (refundable) GST. Do not make your company's "refundable" tax become a costly penalty - Contact Simkover and Associates today.

PST Issues

This is a provincial sales tax applicable to sales occurring in the province of Ontario. Other provinces have their own sales taxes which operate under different rules. Ontario PST applies to the fair market value of taxable goods brought into Ontario for a company's own use, meaning that the goods are not for resale. This includes importation from another province or another country.

There is a long list of products that attract PST, as well as a significant list which do not attract the tax. Most companies that get audited by the Ontario Government end up paying back taxes for PST because they were not up-to-date on the tax rules. They will also pay interest and penalties for not having remitted the PST on time.

Simkover and Associates chartered accountants have real world experience working with large and small corporations for over 15 years. Our chartered accountants have the expertise and knowledge to help your company prevent any GST or PST issues. Tax planning and preparation can help you avoid these issues and help your company save money in the long run. Contact Simkover today to see how we can lead you and your money into the future.