Canco is incorporated on January 1, 2020. As it anticipates minimal sales in 2020, and the expenses
Question:
Canco is incorporated on January 1, 2020. As it anticipates minimal sales in 2020, and the expenses subject to GST/HST would be minimal, it does not register for GST/HST. Suppose that Canco has a better than expected start to operations and is required to register as of July 1, 2020. Which of the following statements accurately describes the GST/HST consequences to Canco?
Canco must go back and charge the tax to all its customers before the date it registered.
Canco must go back and charge GST/HST on the transaction that caused it to exceed the $30,000 limit.
Canco must remit the GST/HST it should have charged on all its sales, prior to registration, but can claim ITCs on all its expenditures during that time.
The period prior to registration is ignored for GST/HST purposes, and Canco begins to charge GST/HST on a go-forward basis only.
Probability and Statistics
ISBN: 978-0321500465
4th edition
Authors: Morris H. DeGroot, Mark J. Schervish