Did I mess up my tax accounts?

[David Harrison]

On Mon, 04 Oct 2004 22:57:29 -0400, Laurent Duperval
<lduperval at videotron.ca> wrote:
> Hi,
> 
> I'm looking at my account statement, to figure out how much I owe the
> gub'mint in taxes. Lo' an' behold, I find that all the taxes I've paid
> on my purchases are deducted from what I owe the feds and their
> acolytes. I'm not *quite* sure that's the way things work in Canada.
> 
> Did I mess up my accounts big time, or is this normal?

What type of taxes are you talking about? 

For GST (and HST, I think, for those provinces that have it), you pay,
or get refunded, the difference between the tax collected and the
taxes paid on purchases.  If this the type of tax you are referring
to, you might be OK. But I bet you filled the forms out wrong ;)

For PST, however, you pay what you collect, less a commission if you
pay on time.  The PST paid on purchases should be posted to the same
account as the expense (i.e.  If you buy office supplies, the PST
should be posted to the office supply expense account). If this is the
type of tax you are talking about, then you have underpaid and could
be subject to interest and penalties if audited!

Dave