Did I mess up my tax accounts?

[Laurent Duperval]

David Harrison wrote:

>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? 
>
>  
>

I just noticed I never replied to this. Shame on me!

The taxes are PST and GST.

>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 ;)
>
>  
>

No I din't. :-)

>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!
>
>  
>

Really? I didn't know that. Well, fortunately I don't have to pay until 
next year so I won't sweat it just yet. But if what you say is true, 
there are a few things I need to fix in my book then.

Thanks,

L


-- 
<Laurent Duperval> lduperval at videotron.ca

I want another RE-WRITE on my CEASAR SALAD!!