Regular and Quick Tax Methods

Question 1

To use the Quick Method of preparing your HST return, total taxable sales must be under __________ per year.

Answer 1

$400 000

Question 2

With the quick method, you don’t need to add up _______.

Answer 2

ITCs

every penny of HST paid

Question 3

When is the quick method most useful?

Answer 3

EXPENSES NOT HIGH

relative to income

Question 4

When is an RMT especially likely to have low expenses (and benefit greatly from the quick method)?

Answer 4

WORKING ON A SPLIT

Question 5

How it works: Quick Method
Instead of remitting to the government all of the HST you collected on your taxable sales, minus the operational HST (ITCs), you remit a ____________ of the HST you collected.

Answer 5

PERCENTAGE

Question 6

What is the percentage CRA asks us to remit using the Quick Method?

Answer 6

8.8%

Question 7

If you are using the quick method at the start of the fiscal year, you get an additional ____% credit for the first __________ of sales.

Answer 7

1%
for the first
$30 000 of sales
($300 for nothing, well, for using QM)

Question 8

If your ITCs are less than _____% of your taxable sales, what will happen using the Quick Method?

Answer 8

ITCs less than 4.2%

you may MAKE A PROFIT using QM

Question 9

You still claim _________ _________ purchases when using the quick method.

Answer 9

CAPITAL ASSET

Question 10

What is the min time you must charge HST before cancelling a registration?

Answer 10

ONE YEAR

Question 11

When must you file for quarterly and monthly returns?

Answer 11

WITHIN ONE MONTH OF END OF PERIOD

Question 12

When must you file for annual returns?

Answer 12

DATE TO FILE: JUNE 15th

MONEY OWING MUST BE PAID BY: APRIL 30th