Joel Knight, a lawyer, is a sole practitioner in the province of Ontario. The HST rate in Ontario is 13 percent. Joel has requested that you advise him on what his HST remittance should be for the October to December quarter. Details of transactions, excluding HST, between October and December are: The HST that is to be remitted for the October to December quarter is:

Question

Joel Knight, a lawyer, is a sole practitioner in the province of Ontario. The HST rate in Ontario is 13 percent. Joel has requested that you advise him on what his HST remittance should be for the October to December quarter. Details of transactions, excluding HST, between October and December are:  The HST that is to be remitted for the October to December quarter is:

Quizplus · Accepted Answer

To calculate the HST remittance, we need to add up the total amount of taxable supplies made during the quarter and then multiply it by the HST rate.

Total taxable supplies made by Joel during the quarter = $58,500 + $1,800 + $31,200 = $91,500

HST payable on taxable supplies = 0.13 x $91,500 = $11,895

Now, we need to subtract the input tax credits (ITCs) that Joel is eligible to claim during the quarter.

ITCs = HST paid by Joel on business expenses during the quarter

HST paid on office rent = 0.13 x $4,500 = $585 
HST paid on legal fees for business purposes = 0.13 x $7,200 = $936 
Total ITCs = $585 + $936 = $1,521

HST remittance for the quarter = HST payable - ITCs = $11,895 - $1,521 = $10,374

Therefore, the HST remittance that Joel needs to make for the October to December quarter is $3,445 (one-third of $10,374, as he is a quarterly filer).

Joel Knight, a Lawyer, Is a Sole Practitioner in the Province