OT- Contractor

[Dave Cramer]

On Tue, Jun 22, 2010 at 6:03 PM,  <phiscock-g851W1bGYuGnS0EtXVNi6w at public.gmane.org> wrote:
>> Incorporation separates things nicely,
>> plus you can buy your car inside the corp and not pay GST, or HST
>> soon.
>> Only your accountant can advise you on
>> how aggressive you should be on what is a company purchase, and what
>> is not.
>
> My understanding is that stuff bought for resale gets a GST refund, or is
> PST exempt. Stuff bought to operate the company (eg, computers, that are
> not resold to a client) are taxable.

Yes, that is/was true for PST, however GST now HST is different, and
this is the advantage to companies

Everything a company, (or a sole proprietor with an HST number)  buys
for their company is now HST deductible.

Dave

>
> In fact, I had a PST inspector here at my premises to check that it was
> being done properly. We passed, happily.
>
> You also have to be careful in granting exemptions. I know of one company
> that was audited and had to cough up thousands in PST payments because
> they had been sloppy about granting PST exemptions.
>
> Peter
>
>
>
> --
> Peter Hiscocks
> Syscomp Electronic Design Limited, Toronto
> http://www.syscompdesign.com
> USB Oscilloscope and Waveform Generator
> 647-839-0325
>
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