This needs to be apply on a restaurant business started with cooperation business style. A business needs to obtain a Business Number with Canada Revenue Agency (CRA) if any of the following accounts are required to operate the business:

1. GST/HST

2. Payroll deductions

3. Corporation income tax

4. Import/Export Resource

1: See this web site for further information: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/registering-your-business/register.html Resource

2: A business would need a GST/HST account if their revenues exceeded $30,000 over four consecutive calendar quarters. However, if you were under the $30K threshold, you could register voluntarily to claim your input tax credits.

Required:

a) In your own words, explain, for your specific business, would you need any of the abovementioned CRA accounts?

b) Based on your answer in (a), would you therefore need to apply for a Business Number?

c) In your own words, explain how as a business you charge your customers GST / HST?

d) In your own words, explain how as a business you would claim your input tax credits for GST / HST?

e) When you run your own business, from Day 1, you will need to keep track of personal and business-related transactions. Describe why this is important and explain how you would set up a system to track your business expenses.

Answer rating: 100% (QA)

1 GSTHST The goods and services tax GST is a tax that applies to most supplies of goods and services made in Canada The GST also applies to many supplies of real property for example land buildings an... View the full answer