Akonstax

*GST Liability on Holdbacks or Partial Payments It’s normal practice in construction industry in Canada to have a certain percentage of invoice payable as "Holdback’ to fulfil terms of contract until expiry of agreed period to meet contingent liability, the contractor will have ,in event of non- performance, or non -compliance per agreed terms. For example if a contractor invoices the recipient of supply or services $100,000 On May 1,2008 due net 30days,and 10% of amount is on "Holdback" for an agreed period ( for example 2 years)and will be collected after expiry of period and contract terms having been satisfactorily fulfilled. Question arise on GST implication of these HoldBack amounts, particularly when amounts involved are significant. Are the contractors supposed to pay GST on these amounts even though they have not been collected or are uncollectable till a certain period Canada Revenue Agency has Memo (G300-6-7) for these partial payments . Memo adds that any sub...

Disposable Income & Taxes In Ontario Analyzing personal taxes, tax an average income earner in Ontario pays, leaves hardly any disposable income with assumptions based on normal expenditures a family incurs. There could possibly be a 5-10% swing in overall income and expense resulting in different picture but trend won’t change significantly My calculations concluded that unless family income exceeded annual $75000 mark it wouldn ’t leave enough cash in hand, forget saving, even to manage and pay monthly bills. My friend Joe would always say " we pay so much taxes" but he couldn ’t figure out how much taxes actually he paid. All he knew was there was hardly any savings in his bank account. He took pride in owning his home . I often asked him " His home"? Or Bank owned it? He argued his home value grew on average 3% annually on his initial investment. He was only taking "initial " investment into consideration. What about annual maintenance cost for hom...