Guide for Canadian Small Businesses

RC4070(E) Rev. 01

Table of Contents

• How This Guide Can Help You
  • Internet access
  • About the CCRA
• Chapter 1: Setting Up Your Business
  • Sole proprietorship
    • How does a sole proprietor pay taxes?
  • Partnership
    • How does a partnership pay taxes?
  • Corporation
    • How does a corporation pay taxes?
    • Are you responsible for your corporation's debts?
  • Keeping records
    • Five reasons why keeping records can benefit you
    • Legal requirements for keeping records
    • Retaining and destroying records
  • Bringing assets into a business
    • Fair market value
    • Buying an existing business
  • The Business Number (BN)
    • Your first step to doing business with the CCRA
  • Are you doing business in Quebec?
  • Do you need a BN?
  • Why it pays to plan ahead
• Chapter 2: The Goods and Services Tax (GST) and Harmonized Sales Tax (HST)
  • What is the GST/HST?
    • On which goods and services do you charge GST/HST?
    • Which goods and services are tax-exempt?
    • Who registers for the GST/HST?
    • Small supplier
    • Voluntary registration
  • How to register for the GST/HST
    • Reporting periods
  • How to collect GST/HST on the taxable goods and services you provide
    • Provincial sales tax
    • Informing your customers
    • What to put on your invoices
  • Input tax credits
    • How to claim an input tax credit
  • Simplified accounting methods
    • The Quick Method
    • The simplified input tax credit method
  • How to calculate the GST/HST you owe and file your return
• Chapter 3: Excise Taxes and Excise Duties
  • What are excise taxes and excise duties?
    • Excise taxes
    • Excise duties
• Chapter 4: Payroll Deductions
  • What to deduct from your employees' paycheques
    • Canada Pension Plan (CPP)/Quebec Pension Plan (QPP)
    • Employment Insurance
    • Income tax
    • Workers' Compensation
  • How to report payroll deductions
    • The T4
    • Quarterly remittances
    • Do you have a computer?
• Chapter 5: Importing/Exporting
  • Before you import commercial goods...
    • Are the goods admissible to Canada?
    • What will it cost to import the goods to Canada?
    • How will you account for the goods and pay the duties and taxes?
    • Must the goods be marked?
    • What are the tariff classification, value for duty, and origin of the imported goods?
    • Should you get a National Customs Ruling before importing?
  • Introduction to importing
    • Form B3, Canada Customs Coding Form 
    • Commercial Cash Entry Processing System (CCEPS)
    • Import permits, health certificates, and other forms that government departments require
    • Setting up your import/export account
    • Examining your goods
    • Release, accounting, and payment: your options
  • Accounting for goods
    • Tariff classification
    • Value for duty
    • Origin
    • Certificates of origin
  • Trade incentives - how to reduce or eliminate the duty
    • Duty deferral program
    • Duties relief program
    • Drawback program
    • Bonded warehouse program
    • Remissions
    • Refunds
  • Review, assessment, and appeals
    • Our review of your accounting package
    • Your reassessment rights
    • Your appeal rights
  • Exporting
• Chapter 6: Income Tax
  • Accounting for your earnings
    • The accrual method
    • The cash method
    • How to keep sales and expense journals
    • How to record your business expenses
  • Fiscal period
  • Income
    • Types of income
    • Inventory and cost of goods sold
  • Expenses
    • What are business expenses?
    • Running a business from your home
    • Types of operating expenses
• Chapter 7: Audits
  • What is an audit?
    • How we select files to audit
  • How we conduct audits
  • Delays in the audit, and how to avoid them
  • Finalizing an audit
• Chapter 8: Objections and Appeals
  • What to do if you disagree with a tax assessment
    • Extraordinary circumstances
    • Problem Resolution Program
    • The objection process
• Chapter 9: How To Get Information From the CCRA
  • Tax services offices
  • Tax centres
  • The International Tax
    Services Office
  • Customs information
  • Customs offices
  • Small business information seminars
  • New employer visit program
  • Tax clinics
  • Government of Canada Info Centres
  • Canada Business Service Centres
  • Business windows
  • Publications
• Important Dates for Income Tax
• Glossary of Terms