Charitable Status

Date: Wed, 5 May 1999 12:59:52 -0300 (ADT)
From: Christopher Majka <nextug@is.dal.ca>
To: Doug McCann <MCCANND@gov.ns.ca>
cc: drigby@chebucto.ns.ca, ab934@chebucto.ns.ca, ccn-board@chebucto.ns.ca, ccn-ip@chebucto.ns.ca
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Hi all,

On Wed, 5 May 1999, Doug McCann wrote:

> Carefull on how you interpret the "$50,000" limit.
> 
> It is my understanding that the $50,000 is not a 'deductable', i.e.
> subtract from gross revenue to determine the proportion on which tax is
> due.  I understand it is a classification, with some organizations above
> and below the threshold.  Those below are not required to register and
> collect the HST.  Those above must register, collect and remit the HST. 
> (Actual net HST - HST collected minus HST paid, or, the value computed
> from the flat rate method). 

This is exactly my understanding as well. Below 50,000 no HST has to be
remitted. Above that the 15% must be (with 7.5% clawback as Doug pointed
out). Between 50,000 & 54,000 the 7.5% paid results in a net loss (i.e.
the net amount we retain is less than $50,00). Above circa 54,000 the net
we retain is again over 50,000 so there is no net loss to the
organization, we are simply paying the 7.5% GST.

Cheers,

Chris

_._.._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._.
Christopher Majka                               <aa051@chebucto.ns.ca>
Editor-in-Chief: Chebucto Community Net - Halifax, Nova Scotia, Canada
URL = http://www.chebucto.ns.ca/Home.html

"We have ... in this country ... far too many captive editors who cannot 
even be heard to rattle their chains."              -- Carl E. Lindstrom
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