1. (Registration Requirements)

Come-By-Chance is a newly created proprietorship owned by Charlie Chance and it has a December 31 year end. It operates white-water rafting trips along the Bow River in Alberta and has not registered to collect the GST.

The business is seasonal, with the following trip fees received in 2018:

June $ 5,200

July 13,400

August 9,500

Total 2018 Revenue $28,100

To date, revenue received in 2019 is as follows:

May $ 1,300

June $ 6,200

Required: Advise Come-By-Chance if registration for the GST is required and include the reasons for your answer. If required, state when GST collection should start and by what date registration must be completed.

1. (Regular HST Return)

Norton's Variety is an unincorporated business owned by Sheila Norton. All of its operations are in Ontario. Ontario participates in the HST program and the HST rate is 13 percent. The business is an HST registrant that sells both fully taxable and zero-rated goods. In addition, Norton's Variety provides exempt services. Norton is an annual filer for HST purposes.

The Income Statement for the current year is as follows (all amounts are before the addition of applicable HST):

Revenues:

Fully Taxable Goods $250,000

Zero-Rated Goods 100,000

Exempt Services 150,000 $500,000

Less Expenses:

Cost Of Fully Taxable Goods Sold ($175,000)

Cost Of Zero-Rated Goods Sold ( 60,000)

Amortization ( 40,000)

Salaries And Wages ( 20,000)

Interest Expense ( 5,000)

Other Operating Expenses ( 10,000) ( 310,000)

Income Before Taxes $190,000

Less: Federal And Provincial Income Taxes ( 82,000)

Net Income $108,000

Other Information:

1. Inventories of fully taxable goods increased by $10,000 during this period, while inventories of zero-rated goods declined by $7,000. The zero-rated sales were generated by purchasing and selling zero-rated supplies.

2. Capital expenditures for this period amounted to $600,000, with HST being paid on all amounts. Of this total, $480,000 was for a building that will be used 40 percent for the provision of fully taxable or zero-rated supplies. The remaining $120,000 was for equipment that will be used 70 percent in the provision of exempt supplies. HST was paid on the acquisition of all assets on which amortization is being taken during this period.

3. Of the Other Operating Expenses, 91 percent were related to the provision of either fully taxable or zero-rated supplies.

4. Of the Salaries And Wages, 40 percent were paid to employees involved in providing exempt supplies.

Required: Calculate the net HST payable or refund that Norton's Variety will remit or receive for the current year.