Determine the net hst payable or refund for the quarter

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Q1. All of the operations of June Ltd. are located in Ontario where the relevant HST rate is 13 percent. During the current quarter, June Ltd. has taxable sales of $1305000 before HST. Its cost of sales for the period was $874000 before HST and its merchandise inventories increased by 120000, again before HST. Salaries and wages for the period totaled $74000, interest expense was $12000, and amortization expense was $85000. No capital expenditures were made during the period. Determine the net HST payable or refund for the quarter.

During a taxation period, Darcy Wholesalers purchased merchandise for $233000. Merchandise sales during this period totaled $439000 and the cost of the merchandise sold was 250000. Ignoring all other costs incurred by Darcy and assuming a rate of 5 percent, how much tax would be paid by Darcy under an invoice-credit VAT system (net tax owing)?

Reference no: EM133177391

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