It is very important to make the HST installments on time to avoid installment interest charges by CRA , accountant at GTA. If your business is situated in Ontario and you have an annual reporting period that begins in 2010, there are proposed changes for calculating the amount of your instalment payments for that reporting period. Your instalment payments that become payable after the first fiscal quarter beginning on or after July 1, 2010, will be equal to the lesser of ¼ of the amount of net tax for the current year and ¼ of 240% of the amount of the net tax for the previous year, HST accountant Brampton On.
You are a corporation situated in Ontario with a December 31 fiscal year-end. Your net tax for the 2009 fiscal year was $8,000. Your net tax for the 2010 fiscal year will be $9,000.
You determined under the pre-July 1, 2010, instalment payments calculation rules that your instalment payments would be $2,000 ($8,000/4). However, your instalment payments beginning in October 2010 will be calculated using the new proposed instalment payment rules. As your corporation is situated in Ontario, your instalment payments beginning October 2010 will be $2,250 as this amount is the lesser of:
1/4 x $9,000 = $2,250
1/4 x (240% x $8,000) = $4,800
You will need to increase your instalment payments due on or after October 2010, to $2,250 to reflect the increase in net tax.
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