Chapter 16

Question 1

Generally, the ________ is required to collect the GST.

Answer 1

seller

Question 2

A ____ program allows owners to pay 1/12 of their annual property tax bill monthly, typically by debiting it from the owner’s bank account each month.

Answer 2

Tax Installation Payment Plan Service (TIPPS)

Question 3

Value added tax is __________.

Answer 3

a form of taxation used to raise funds on the final value created through the production of an item.

Question 4

Money earned from any activity that is carried on for the purpose of making a profit is categorized as _______.

Answer 4

business income

Question 5

The _____ is the piece of legislation that imposes GST in Canada.

Answer 5

Excise Tax Act (ETA)

Question 6

What is the self-supply rule?

Answer 6

The rule deems a builder to have sold the new home to him or herself at the time of the move-in, so the builder owes GST on the value of the home even though there was no actual sale.

Question 7

In transactions where commercial real property is purchased, the _____ is responsible for reporting GST.

Answer 7

buyer

Question 8

Every municipality is required to establish a ______ to hear appeals.

Answer 8

Board of Revision

Question 9

GST is _______________.

Answer 9

a federal tax paid on goods and services sold or provided in Canada

Question 10

When a property is sold for a price greater than what it was purchased for, the seller may realize what is called a ______.

Answer 10

capital gain