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Input Tax Credits (ITC)

Update on the Impact of HST on Insurance Premiums in Ontario

Richard Weber on November 23, 2015 in Harmonized Sales Tax (HST)

Pre-Harmonized Sales Tax (HST) rules Before the implementation of the HST, Ontario Retail Sales Tax (RST) applied at a rate of 8 percent to a broad range of goods and selected services. It also applied to premiums for certain types of insurance, including group insurance and contributions paid into funded plans. Automobile insurance premiums were … Continued



Update on Verification of Suppliers’ GST/HST Numbers for ITC Claims

Richard Weber on November 13, 2015 in Advice for Business Owners

Section 169(4) of the Excise Tax Act requires a purchaser to substantiate its input tax credit (ITC) claim by obtaining information from the supplier, including the name of the supplier and the GST/HST registration number assigned to it. This information is typically obtained from the invoice provided by the supplier. Beware: Invalid information such as … Continued



Buy Your Equipment Now! Capital Cost Allowance - Class 29 is Disappearing

Janice Pomerleau on November 11, 2015 in Input Tax Credits (ITC)

Are you planning on purchasing equipment for your business in 2016? If you purchase that equipment and it is available for use before January 1, 2016 you could use the accelerated CCA Class 29 which would allow you to write off the cost of the equipment over a 3 year period instead of an 8-10 … Continued



Tax Implications for Businesses When Phasing out the Penny

Mustafa Dossajee on March 6, 2013 in Advice for Business Owners

Retail cash transactions will be affected when phasing out the penny and we would like to offer some advice—provided by the Canada Revenue Agency (CRA)—to help you through this process. Do you charge GST/HST before/after rounding out the penny? Since the GST/HST is calculated on the amount charged for taxable supplies, the rounding should occur … Continued



Verification of Suppliers’ GST/HST numbers for ITC claims is imperative

Richard Weber on September 29, 2010 in Advice for Business Owners

Click here to read the 2015 Update! Section 169(4) of the Excise Tax Act requires a purchaser to substantiate its input tax credit (ITC) claim by obtaining information from the supplier, including the name of the supplier and the GST/HST registration number assigned to it. This information is typically obtained from the invoice provided by the … Continued



The impact of HST on Insurance Premiums in Ontario

Richard Weber on September 22, 2010 in Harmonized Sales Tax (HST)

Click here to read the 2015 Update! Pre-Harmonized Sales Tax (HST) rules Before the implementation of the HST, Ontario Retail Sales Tax (RST) applied at a rate of 8 percent to premiums for certain types of insurance, including group insurance, contributions paid into funded plans as well as benefits paid out of unfunded plans. Automobile insurance … Continued



ITC Restrictions and Production Proxy

Richard Weber on August 4, 2010 in Advice for Business Owners

With the introduction of HST effective July 1, 2010, businesses making taxable supplies, including zero-rated supplies, worth more than $10 million annually on an aggregate associated basis (“large business”), including financial institutions, in the course of their commercial activities are subject to temporary restrictions on input tax credits (ITCs) that would apply to specified road … Continued



HST – Small Business Transition Support

Richard Weber on June 23, 2010 in Advice for Business Owners

With the introduction of HST effective July 1, 2010, the Ontario government is providing a one-time transition support to assist small businesses make the necessary changes to their systems to collect the HST. Systems that may require changes include: point of sale terminals, cash registers, computer software and websites invoices, purchase orders and expense reports … Continued



Input Tax Credit Restrictions for Large Businesses

Richard Weber on March 31, 2010 in Harmonized Sales Tax (HST)

With the introduction of the Harmonized Sales Tax (HST) becoming effective July 1, 2010, the 2009 Ontario Budget announced temporary restrictions on input tax credits (ITCs) for the Ontario portion (8%) of the HST that would apply to the underlying items used by businesses making taxable supplies, including zero-rated supplies, that are worth more than … Continued