With Respect to the Simplified Method of Accounting for Input

With respect to the simplified method of accounting for input tax credits in a province that does not participate in the HST program, which of the following statements is NOT correct?

A) Total fully taxable inputs, with the exclusion of capital expenditures on real property, are multiplied by 5/105 to arrive at the input tax credit for the GST return.
B) Capital expenditures are not tracked separately for purposes of determining input tax credits.
C) Registrants using this method charge GST at the usual 5 percent rate on fully taxable sales.
D) Registrants using this method who provide both taxable and exempt goods and services must pro-rate the input tax credit claim so that only the portion that applies to taxable goods and services is claimed.