Hi,

One of my friend ask me this question and I wasn't sure what he can do. I need help from you guys..

My friend is full time employee in one of Financial Institution and also provide his services to fix computer problems as his part time business. He earn about CAD$ 3000-4000 per year from his part time business. Mostly he work on cash but sometime some company give him cheque. He receive all cheque on his wife's name to lower his tax bracket (his wife doesn't work and stayed home). He showed all business income on his wife's tax return and related office expenses.

As per him, GST is only for those who have 30,000/= or more annual income. Becuase his wife annual income is around 3000 to 4000 that's why he don't need to charge GST to his customers. Is he is right?

Second question is, last week one of this client (which is a mid size company) give him cheque for his services and also give the GST (which is around CAD$52). Because he doesn't have any GST number and not registered business. How he give this GST to CCRA because to collect GST and give to CCRA, you need GST number.

What you gus suggest. Looking for any professional help.

Thanks

Their Phone Number : 1-800-959-1953
http://www.cra-arc.gc.ca/bnfts/gsthst/menu-eng.html

Deleted Duplicate.

Their Phone Number : 1-800-959-1953
http://www.cra-arc.gc.ca/bnfts/gsthst/menu-eng.html

Here is a Q & A section that might give you some insight into the GST.

Q. I don't earn $30,000 and do not anticipate earning that amount this year. Should I collect GST?

A.You do not have to collect GST, but if you chose not to collect GST you are letting your clients know that you earn less than $30,000 per year. If that matters to you, then you should collect GST. In addition, having a GST # on your invoice and charging GST makes you look more professional.

Newspapers, magazines and most businesses charge GST and they all expect to pay GST so charging GST is not a deterrent to finding work.
By collecting GST, you in effect give yourself a raise because you are allowed to keep a portion of the GST that you collect (if you use the Quick Method) or you deduct the GST you have spent on business expenses from the GST you collect and remit the difference to the government (if you use the Long Method).

Since most if not all of your clients are likely to be able to recover GST that they paid, it makes economic sense in most cases to register for GST if your sales are less than $30,000.

Here is a link: http://www.pwac.ca/eventsandresources/faqgst

Freddie.

These people charge you, so read to understand their version. :
http://www.bdc-canada.com/BDC/services/gst_registration.htm?gclid=CMi3nqDM754CFchn5QodXykvKA
http://dioguarditaxlaw.com/dangerous_cra_forms.asp