Key Tax Information for Canadian Businesses

Here are some tips from Webnames.ca to keep our clients aware of key tax information.

Webnames.ca would like to remind everyone that British Columbia will be switching back from HST to the GST/PST tax system. While this transition may cause some confusion regarding, Webnames.ca would like to help inform clients of the up-coming changes. We would also like to inform clients about important dates that need to be marked on your calendar.

Key Dates to Mark on Your Calendar

March 31

Deadline to pay any 2012 penalty tax owing on excess RRSP contributions.

April 1

British Columbia reverts back from the Harmonized Sales Tax (HST) to the Goods and Services Tax (GST)on April 1st, 2013; the new Provincial Sales Tax (PST) will be rated at 7%.

Businesses in British Columbia also need to register to collect PST. For more information, read our previous blog on the changes http://blog.webnames.ca/2013/03/pst-returns-april-1-register-n.html#.UUzDkK7VbOM

P.E.I. will switch to the HST and follow the tax system used in the provinces of Ontario, Nova Scotia, New Brunswick, and Newfoundland and Labrador. P.E.I.’s HST tax rate will be 14%, slightly less than Quebec’s 14.95% HST rate.

April 30

The deadline for filing Canadian income tax returns without interest penalties being incurred.

Tax Tip: Save more by purchasing capital goods now!

To make the most of HST, make capital purchases now before the switch back to GST/PST. By doing so, you will be able to deduct 12% off capital expenses that you might owe the CRA in taxes. This will net you an extra 7% if you purchase capital goods before April 1st. Capital goods purchased on or after April 1st, which will only net you a 5% deduction.