Question

In Ontario, the HST rate is 13 percent, in Alberta there is only GST of 5 percent. For which of the following transactions will the rate charged be 5 percent? Question 6 options:

A. An Ontario registrant ships a product to a recipient in Alberta.

B. An Ontario registrant sells a product to a resident of Alberta who is visiting Ontario.

C. An Alberta registrant ships a product to a recipient in Ontario.

D. A writer located in Alberta produces a book for a publisher located in Ontario and receives payment from the Ontario office.

The term "supply" as used in the Excise Tax Act would include all of the following except: Question 7 options:

A. The sale of a car by a car dealership.

B. The provision of engineering services by an engineering firm.

C. A trade of hairdressing services provided in exchange for tax advice.

D. The provision of employment services by an employee to their employer.

question 3: John’s Rooms is a new business which started on January 1, 2016. Its sales during its first four quarters of operation were as follows: Quarter Sales 1 - $13,000 2 - 18,000 3 - 24,000 4 - 27,000 On what date will John’s Rooms have to begin collecting GST? Question 3 options A. The date in the second quarter on which cumulative sales total $30,000. B. July 1, 2016. C. August 1, 2016. D. September 1, 2016.

Question 4: How does the Canadian government compensate for the regressive nature of the GST? Question 4 options: A. By allowing an exemption from the tax for lower income individuals. B. By ensuring that items purchased more frequently by lower income individuals are not subject to the tax. C. By providing lower income individuals with GST refunds. D. By providing a refundable GST tax credit that is available to lower income individuals.

Question 5: Kevin Knight, a lawyer, is a sole practitioner in the province of Ontario. The HST rate in Ontario is 13 percent. Kevin has requested that you advise him on what his HST remittance should be for the October to December quarter. Details of transactions, excluding HST, between October and December are: Revenues $30,000 Expenses: Salaries $ 7,000 Proprietor’s drawings 11,000 Office supplies 500 Rent 3,000 The HST that is to be remitted for the October to December quarter is: Question 5 options: A. $1,105. B. $2,535. C. $3,445. D. $3,835. E. None of the above.

Answer 1

Hey there !!

let me help you with these GST questions !

Question 6 Correct option is C

When An Alberta registrant ships a product to a recipient in Ontario, GST prevailing in Alberta is levied and not HST.

Question 7 Correct option is D

Provision of employment Services by an employee to his employer doesn't constitute to be a Supply.

Income tax is levied on the salary earned by the employees and not GST.

Question 3 Correct option is A

Let us plot the sales...

	Sales	Cumulative Sales
Quarter 1	13,000	13,000
Quarter 2	18,000	31,000
Quarter 3	24,000	55,000
Quarter 4	27,000	82,000

Now, if an entity exceeds throshold of $ 30,000 in any quarter, the entity ceases to be small supplier and GST is to be charged begining of the month when the entity ceases to be small supplier.

Question 4 Correct option is D

Certain taxes are regressive in nature such as GST . They impact the richer section and the poorer section of society equally. These taxes are levied irrespective of the financial status of an individual.

However, the Canadian Govt has taken an initiative to reduce the tax burden on Lower income individuals by providing Tax credits.

I hope the above solutions are clear to you...do let me know if you have any other queries...

all the best !!!