July 1, 2010

 

  • On July 1, 2010, the provinces of Ontario and British Columbia joined the harmonized sales tax (HST) framework. The HST combines the federal goods and services tax (GST) with the provincial sales tax (PST) in those provinces and is administered by the Canada Revenue Agency. The HST is now in effect in Ontario. It is applied on most purchases of taxable supplies of goods and services in Ontario at a rate of 13%, consisting of the 5% federal portion and an 8% provincial portion.Businesses in Ontario that were registered for GST are now required to collect and report the HST according to their previous GST filing frequency.
  • You have to register for GST/HST when you no longer qualify as a small supplier because your total worldwide taxable supplies of goods and services exceed the small supplier limit of $30,000 in a single calendar quarter or in four consecutive calendar quarters.
  • Corporation tax rates; The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement.
For Canadian-controlled private corporations claiming the small business deduction, the net tax rate before surtax* is:
  • 12% before January 1, 2008
  • 11% effective January 1, 2008
For the other corporations, the net tax rate before surtax* will decrease as follows:
  • 21% before January 1, 2008
  • 19.5% effective January 1, 2008
  • 19% effective January 1, 2009
  • 18% effective January 1, 2010
  • 16.5% effective January 1, 2011
  • 15% effective January 1, 2012
*The corporate surtax is zero, effective January 1, 2008.
  • Federal tax rates for individuals for 2010 are:
    • 15% on the first $40,970 of taxable income, +
    • 22% on the next $40,971 of taxable income (on the portion of taxable income between $40,970 and $81,941), +
    • 26% on the next $45,080 of taxable income (on the portion of taxable income between $81,941 and $127,021), +
    • 29% of taxable income over $127,021.
  • Ottawa, Ontario, June 28, 2010... The Canada Revenue Agency (CRA) today announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to amounts the CRA owes to individuals and corporations. These rates are calculated quarterly according to applicable legislation. The rate indicated below will be in effect from July 1, 2010 to September 30, 2010.
Interest Rates

Income tax

  • The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%.
  • The interest rate paid to corporate taxpayers on overpayments will be 1%.[Footnote 1]
  • The interest rate paid to non corporate taxpayers will be 3%.
  • The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 1%.

Other taxes

The interest rate on overdue and overpaid remittances for the following taxes will be:
Tax and Duty Overdue remittances Overpaid remittances
    Corporate taxpayers [Footnote 1] Non corporate taxpayers
Goods and Services Tax (GST) 5% 1% 3%
Harmonized Sales Tax 5% 1% 3%
Air Travellers Security Charge 5% 1% 3%
Excise Tax (non GST) 5% 1% 3%
Excise Duty (except Brewer Licensees) 5% 1% 3%
Excise Duty (Brewer Licensees) 3% N/A N/A
Softwood Lumber Products Export Charge 5% 1% 3%

Footnotes [Footnote 1] Part 1, 2, 3 and 4 of Bill C-9, an Act to implement this interest rate change comes into force on July 1st 2010, subject to Royal Assent.

 

 


 

Latest News & Articles

July 1, 2010

The provinces of Ontario and British Columbia joined the harmonized sales tax (HST) framework. The HST combines the federal goods and services tax (GST) with the provincial sales tax (PST) in those provinces and is administered by the Canada Revenue Agency. The HST is now in effect in Ontario.



Read more
Email us your tax and accounting related questions.




Corporate Info
Our associates are a group of former Canada Revenue Agency tax auditors and accountants who have years of accounting and tax experience. We understand the importance of bookkeeping.
Recent News
Connect With Us

Powerd by Lorewing.com Copyright TradeLink. All Rights Reserved
Home About Us Services Links & Forms Contacts