Businesses in Canada

Businesses in Canada are required to collect the GST & HST on the sale of supplies and services made in Canada, the tax payable can be offset by Input Tax Credits (ITC’s) which are the taxes that you pay on eligible expenses. GST/HST is a separate tax from corporate taxes businesses are required to pay and the information and process for filing the 2 are quite different. Compliance with collection, filing, and payment are mandatory requirements set out by the CRA and failure to file and pay on time can result in penalties and fines.

​At SMS, we understand the conditions, obligations, and nuances of when and what sales to collect tax on, eligible ITC’s, when to register, how to register, frequency of payment and many more. Knowing this information helps our clients to avoid overpaying the GST/HST tax, maximizing the available benefits, minimizing the likelihood of audits or reviews, and remaining compliant.

​GST/HST Audits

The CRA’s GST/HST laws and regulations are unyielding, these are mandatory taxes that are to be paid and the CRA views these funds as held in-trust until you pay them. Essentially you are holding this money on their behalf until it is time to pay. Failure to comply with filing and payment can result in GST/HST audits or reviews; should you be facing an audit, the tax specialists at Sms have the experience and expertise to help you navigate through this difficult time.