FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Gst-Hst

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Tamara Soccorro is a real estate agent. She lives in a province that participates in the HST program at 13 percent. She earns commission income, and pays her employment related expenses herself. Tamara has claimed the following expenses on her T777 - Statement of Employment Expenses: Where applicable, the amounts include the HST. What is Tamara's Employee HST Rebate?

A) $ 607
B) $1,273
C) $1,439
D) $1,634

E) B) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

George Black lives in Manitoba, a non-participating province that has an 8 percent provincial sales tax. During the current year, he purchases a new Lexus for $82,000. He receives a trade in allowance of $36,000 for his old vehicle. The GST/HST charged on his new vehicle would be equal to:

A) $4,100.
B) $2,300.
C) $5,980.
D) $10,660.

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Underwater World Ltd., is located in Alberta. Alberta does not participate in the HST program and does not have a provincial sales tax. Among the purchases Underwater World Ltd. made during December were the following items: Waterways Ltd. carries supplies for charter boat operators and requires the payment of a membership to use their services. The input tax credits that Underwater World Ltd. can claim for the above items for December are:

John is a resident of Ontario where a 13 percent HST rate is in effect. He is acquiring a new car from a car dealer and is being given a trade-in allowance for his old vehicle. Explain how the HST will apply to John's purchase.

Describe the GST/HST consequences related to the sale of: • fully taxable goods and services; • zero-rated goods and services; and • exempt goods and services.

Kenichi Tajima operates a small clothing store in Saskatchewan, a non-participating province. The provincial sales tax is 6 percent. This store uses the simplified method of accounting for input tax credits. The store had fully taxable purchases of $180,000 and purchased capital items (not including real property) with a cost of $5,000. Both amounts include PST and GST. What amount of input tax credit is Mr. Tajima able to claim?

Provide two examples of expenditures where available input tax credits are restricted, even when the expenditures involved commercial activity.

Under what circumstances would an entity choose to file a GST or HST return more frequently than required by the Excise Tax Act?

Briefly describe the advantages, from the point of view of business organizations, of an HST system as compared to a combined GST/PST system.

Describe two factors that have been influential in the increased use of transaction taxes in various countries around the world.

Elfassy Art Dealers is a new business which started operating on January 1 of the current year. It had four sales on the following dates during its first year of operation: On what date will Elfassy Art Dealers have to begin collecting GST?

Certain qualifying registrants can use the Quick Method of accounting for GST/HST. What are the advantages of using this method?

In April of the current year, Bryan Lord purchases a new home at a cost of $610,000, plus GST of $30,500. Bryan is a resident of Manitoba, a province that does not participate in the HST program. Bryan will be eligible for a new housing GST rebate of:

Ms. Jesse Holt begins her business on January 1 of the current year. Her quarterly sales of fully taxable items are as follows: *Consists of a sale of $28,000 on October 15 and a sale of $14,000 on November 27. At what point in time will Ms. Holt have to begin collecting GST? At what point will she be required to register?

Describe the "place of supply" rules as they apply to (1)tangible goods other than real property, and (2)services.

If a newly acquired capital real property is used more than 50 percent for the provision of taxable supplies, the acquirer can claim 100 percent of the GST paid as an input tax credit.

Which of the following is NOT a fully taxable supply?

Which of the following is NOT correct?

When the quick method is used, input tax credits on capital expenditures are tracked and dealt with in the same manner as when the regular method is used.

Which of the following transactions related to the operation of a trust are subject to GST/HST?