1.6 taxes - 1.6 Taxes 3 LEVELS OF GOVERNMENT MEANS 3...

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Unformatted text preview: 1.6 Taxes 3 LEVELS OF GOVERNMENT MEANS 3 DIFFERENT TYPES OF TAXATION LEVEL OF GOVERNMEN T EXAMPLE TYPE OF TAX FEDERAL PROVINCIAL MUNICIPAL CANADA ONTARIO LONDON GST PST PROPERTY TAX 5% Federal sales tax charged on most goods and services Paid by the purchaser of the good or service to the seller A business collects GST on sales, and pays GST on any purchases At the end of reporting period businesses file GST return, and remit only the difference between GST collected and GST paid GST Remittance = GST Collected GST Paid **refund if Collected < Paid** GST GOODS & SERVICES TAX Ex #1 : Marys Home Income Tax business operates only during tax season. Last season Mary grossed $28,000 before GST. During that season she spent $8,000 before GST on her paper and supply purchases. What is Marys GST remittance? GST Remittance = GST Collected GST Paid = 28,000(0.05) 8,000(0.05) = 1,400 400 = $1,000 Does Mary owe the CRA (Canada Revenue Agency) or will she receive a refund?...
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1.6 taxes - 1.6 Taxes 3 LEVELS OF GOVERNMENT MEANS 3...

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