Which of these is a TRUE statement:

(a) Businesses collect HST on behalf of the provinces

(b) ITC can be claimed by a Business if the goods & services purchased are for personal use

(c) If the ITC is higher than the HST collected, the Business will end up remitting HST to CRA

(d) Businesses must start remitting HST on revenues above $30,000 even though there is no ITC claim for that period

a.

Businesses collect HST on behalf of the provinces

b.

ITC can be claimed by a Business if the goods & services purchased are for personal use

c.

If the ITC is higher than the HST collected, the Business will end up remitting HST to CRA

d.

Businesses must start remitting HST on revenues above $30,000 even though there is no ITC claim for that period

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Question 2

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An Ontario business has total revenues of $50,000 for a period. Revenues from Quebec customers represented $18,000. Revenues from Alberta customers represented $6,000. The balance was from Ontario customers. The business has an ITC claim of $3,200. How much HST does the business have to remit for the period?

(a) $3,250

(b) $3,300

(c) $50

(d) None of the above

a.

$3,250

b.

$3,300

c.

$50

d.

None of the above

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Question 3

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In the above example, if ITC claim was $4,000, will the business have to pay HST to CRA?

(a) Yes

(b) No

(c) The net amounts will balance out

(d) None of the above

a.

Yes

b.

No

c.

The net amounts will balance out

d.

None of the above

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Under what circumstances does an employee of a corporation not have to contribute to an Employment Insurance plan?

(a) When the employee is deemed at not at- arms length with the corporation

(b) When the employee has more than 40% voting shares of the corporation

(c) When the employee is the brother of the CEO of the corporation

(d) When the employee is a key executive of the corporation

a.

When the employee is deemed at not at- arms length with the corporation

b.

When the employee has more than 40% voting shares of the corporation

c.

When the employee is the brother of the CEO of the corporation

d.

When the employee is a key executive of the corporation

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Which of the following are zero-rated goods & services for the purpose of HST?

(a) Supplies necessary for business

(b) Soft drinks

(c) Alcoholic beverages

(d) Both (b) & (c)

a.

Supplies necessary for business

b.

Soft drinks

c.

Alcoholic beverages

d.

Both (b) & (c)

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You will need the following information to answer this question and the next two questions:

The 2017 rates for CPP & E.I are as follows:

Maximum Pensionable Earnings for CPP: $55,300; Basic Exemption for year: $3,500; CPP contributory rate: 4.95%; Employer has to match Employee share for its E.I contribution.

Maximum Insurable Earnings for E.I: $51,300; E.I contributory rate: 1.63%; Employer share of E.I contributions: 1.4 times employee contribution.

Question: Rahul is employed on a monthly pay period basis. He made $48,000 annually in 2017. What is his CPP deduction per pay period?

(a) $2,202.75

(b) $84.72

(c) $183.56

(d) $198.00

a.

$2,202.75

b.

$84.72

c.

$183.56

d.

$198.00

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Using the above information for Rahul, calculate his E.I. deductions for the pay period:

(a) $782.40

(b) $65.20

(c) $69.68

(d) $60.45

a.

$782.40

b.

$65.20

c.

$69.68

d.

$60.45

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Using the information in the above examples and given that Rahul was deducted $580 in total income taxes, what was the employers total remittance to CRA for the pay period?

(a) $371.12

(b) $156.48

(c) $1,527.60

(d) $1,107.60

a.

$371.12

b.

$156.48

c.

$1,527.60

d.

$1,107.60

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Navjot was a director of a Canadian corporation in 2017. She did not receive regular remuneration as an employee; however, she got a directors fee of $6,000 every three months. Calculate her CPP deductions for her pay period.

(a) $875.00

(b) $427.08

(c) $253.69

(d) $208.33

a.

$875.00

b.

$427.08

c.

$253.69

d.

$208.33

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If your business is incorporated in Ontario, you are required to charge HST on:

(a) All online sales you would have made to B.C and Alberta customers

(b) All sales you would have made to all customers outside Ontario

(c) All sales you would have made to Ontario residents

(d) None of the above

a.

All online sales you would have made to B.C and Alberta customers

b.

All sales you would have made to all customers outside Ontario

c.

All sales you would have made to Ontario residents

d.

None of the above