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Streamlined Accounting (GST/HST) Regulations

Version of section 17 from 2016-10-01 to 2024-05-28:

  •  (1) Subject to subsection 21.3(1), if an election by a registrant to determine the net tax of the registrant in accordance with this Part is in effect during a particular reporting period of the registrant, the net tax of the registrant for the particular reporting period is equal to the positive or negative amount determined by the formula

    A + B - C - (1% × D)

    where

    A
    is the total of all amounts each of which is determined, in respect of all the particular supplies to which the same quick-method rate applies, by the formula

    E × F

    where

    E
    is the quick-method rate of the registrant for the particular reporting period that applies to the particular supplies, and
    F
    is the portion of the net specified supplies of the registrant for the particular reporting period attributable to the particular supplies;
    B
    is the total of
    • (a) all amounts that became collectible and all other amounts collected by the registrant in the particular reporting period as or on account of tax under Division II in respect of

      • (i) supplies (other than specified supplies) made by the registrant, and

      • (ii) supplies made on behalf of another person for whom the registrant acts as agent and in respect of which the registrant has made an election under subsection 177(1.1) of the Act,

    • (b) all amounts in respect of supplies (other than specified supplies) that are required under Division V to be added in determining the net tax for the particular reporting period, and

    • (c) the amount that is required under subsection 238.1(4) of the Act to be added in determining the net tax for the particular reporting period;

    C
    is the total of all amounts each of which is
    • (a) an input tax credit

      • (i) for the particular reporting period or a preceding reporting period of the registrant in respect of property (other than specified property) acquired, imported or brought into a participating province by the registrant or an improvement to that property,

      • (ii) for a reporting period of the registrant ending before the election became effective in respect of specified property or services (other than an improvement to property that is not specified property) acquired, imported or brought into a participating province by the registrant,

      • (iii) for the particular reporting period or a preceding reporting period of the registrant in respect of tangible personal property that is specified property acquired, imported or brought into a participating province by the registrant for the purpose of supply by way of sale and is deemed under subsection 177(1.2) of the Act to have been supplied by an auctioneer acting as agent for the registrant or is supplied by a person acting as agent for the registrant in circumstances in which subsection 177(1.1) of the Act applies, or

      • (iv) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of tangible personal property that is deemed under paragraph 180(e) of the Act to have been acquired by the registrant and under subsection 177(1) or (1.2) of the Act to have been supplied by the registrant,

      that is claimed in the return filed under Division V by the registrant for the particular reporting period,

    • (b) an amount in respect of a supply (other than a specified supply) that may be deducted by the registrant under Division V in determining the net tax for the particular reporting period and that is claimed in the return under Division V filed by the registrant for the particular reporting period,

    • (c) an amount equal to 2.8% of the portion of the registrant’s net specified supplies for the particular reporting period that is attributable to supplies which are made through a permanent establishment of the registrant in Ontario and to which the quick-method rate of 0% applies, or

    • (d) an amount equal to 4% of the portion of the registrant’s net specified supplies for the particular reporting period that is attributable to supplies which are made through a permanent establishment of the registrant in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador and to which the quick-method rate of 0% applies; and

    • (e) [Repealed, SOR/2012-191, s. 15]

    • (f) [Repealed, SOR/2016-212, s. 5]

    D
    is
    • (a) where the election was not in effect,

      • (i) if the registrant became a registrant on a day in the registrant’s fiscal year that includes the particular reporting period, on that day, or

      • (ii) in any other case, on the first day of that fiscal year,

      nil,

    • (b) if the total net specified supplies of the registrant for all reporting periods of the registrant in that fiscal year during which the registrant was a registrant that end before the particular reporting period is equal to or greater than $30,000, nil, and

    • (c) in any other case,

      • (i) if the particular reporting period is the first reporting period in that fiscal year during which the registrant was a registrant, the lesser of the net specified supplies of the registrant for the particular reporting period and $30,000, and

      • (ii) if the particular reporting period is not the first reporting period in that fiscal year during which the registrant was a registrant, the lesser of

        • (A) the net specified supplies of the registrant for the particular reporting period, and

        • (B) the amount by which $30,000 exceeds the total net specified supplies of the registrant for all reporting periods of the registrant in that fiscal year during which the registrant was a registrant that end before the particular reporting period.

  • (2) For the purposes of paragraphs (b) and (c) of the description of E in subsection (1), the first reporting period of a registrant beginning after 1993 in a fiscal year of the registrant beginning before 1994 is deemed to be the first reporting period of the registrant in that fiscal year.

  • SOR/99-368, s. 6
  • SOR/2007-203, s. 2
  • SOR/2011-56, s. 19
  • SOR/2012-191, s. 15
  • SOR/2013-44, s. 6
  • SOR/2016-119, s. 5
  • SOR/2016-212, s. 5

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