RSM324H1 Chapter 3: CHAPTER 3-3
15 Feb 2017
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Chapter 3 liability for tax, income determination, and administration of the income tax system. Except for a few exempt items, the gst is imposed at the rate of 5% on the value of all goods or services sold by registered businesses. The tax is charged to businesses as well as to individual consumers. Most business entities are entitled to a full rebate of the tax on all goods and services purchased, provided that those goods and services were acquired for business purposes. In effect, the gst is a sales tax on consumer goods and services. If costs > sales, no tax is remitted, and a business is entitled to a gst refund. As a result, the tax applies primarily to individuals as the ultimate consumers. Businesses are generally responsible for collecting and remitting the gst to the government. Businesses that are required to have a gst registration are called registrants.
