1 irwa canadian goods and services tax chapter treasurer, irwa headquarters and accountants...
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IRWA Canadian Goods and IRWA Canadian Goods and Services TaxServices Tax
Chapter Treasurer, IRWA Chapter Treasurer, IRWA Headquarters and Accountants Headquarters and Accountants
Responsibilities Responsibilities
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IRWA’s Structure:IRWA’s Structure:
The International Right of Way The International Right of Way Association (IRWA) is a not for profit Association (IRWA) is a not for profit professional organization, specializing professional organization, specializing in education and professional in education and professional development courses in the United development courses in the United States and Canada. The IRWA is States and Canada. The IRWA is registered for GST/HST and this registered for GST/HST and this registration covers all Canadian registration covers all Canadian chapters.chapters.
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Goods and Services TaxGoods and Services Tax
The IRWA is required by the Federal The IRWA is required by the Federal and Provincial Tax Acts (“the Acts”) to and Provincial Tax Acts (“the Acts”) to be registered for Goods and Services be registered for Goods and Services Tax (GST/HST). As a result, IRWA is Tax (GST/HST). As a result, IRWA is responsible for collecting and remitting responsible for collecting and remitting GST/HST on all taxable goods and GST/HST on all taxable goods and services sold or supplied in Canada, services sold or supplied in Canada, and for filing compliance reports on a and for filing compliance reports on a quarterly basis. quarterly basis.
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Policy OverviewPolicy Overview
It is the policy of the IRWA to charge It is the policy of the IRWA to charge GST/HST at the rate specified by “the GST/HST at the rate specified by “the Acts” on taxable supplies (as Acts” on taxable supplies (as discussed on a later slide) and apply discussed on a later slide) and apply for GST/HST “input tax credit” (ITC). It for GST/HST “input tax credit” (ITC). It is the policy of The IRWA to be in is the policy of The IRWA to be in compliance with “the Acts” and all compliance with “the Acts” and all related regulations. related regulations.
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IRWA Assistance to ChaptersIRWA Assistance to Chapters
IRWA realizes most chapter treasurers IRWA realizes most chapter treasurers are volunteers. IRWA also realizes that are volunteers. IRWA also realizes that the administrative requirements to the administrative requirements to comply with the Canadian GST/HST comply with the Canadian GST/HST laws is an extra burden. As a result, laws is an extra burden. As a result, IRWA has engaged the services of a IRWA has engaged the services of a Canadian accounting firm, Canadian accounting firm, Hogg, Shain Hogg, Shain & Scheck. & Scheck.
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Accountant Contact Information:Accountant Contact Information:
Accounting Firm’s Name: Accounting Firm’s Name: Hogg, Shain & Hogg, Shain & Scheck Professional CorporationScheck Professional Corporation
Fax: Fax: 416-499-4449416-499-4449
Email: Email: Lin Shen at [email protected] & Irina Lin Shen at [email protected] & Irina Palcikova at [email protected] at [email protected]
Primary Contact: Primary Contact: Ken ShainKen Shain
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IRWA Assistance to ChaptersIRWA Assistance to Chapters
IRWA headquarters will pay all IRWA headquarters will pay all expenses associated with the expenses associated with the accounting firm in complying with accounting firm in complying with GST/HST laws.GST/HST laws.
Chapters are responsible for collecting Chapters are responsible for collecting and accounting for applicable Goods and accounting for applicable Goods and Services Taxes. and Services Taxes.
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What the GST Covers:What the GST Covers: 1)1) The IRWA Headquarters and its Canadian The IRWA Headquarters and its Canadian Chapters are required to charge GST/HST at 5%/13% Chapters are required to charge GST/HST at 5%/13% on most items, including the following:on most items, including the following:– Canadian member duesCanadian member dues– Course fees for courses attended in CanadaCourse fees for courses attended in Canada– Textbooks, student participant course materials and Textbooks, student participant course materials and
instructor/facilitator materials supplied to Canadian instructor/facilitator materials supplied to Canadian chapterschapters
– Registration fees for conferences held in CanadaRegistration fees for conferences held in Canada– Fees charged on networking/promotional activities in Fees charged on networking/promotional activities in
Canada, such as luncheons, golf days, etc.Canada, such as luncheons, golf days, etc.– Promotional merchandise sold in Canada, such as IRWA Promotional merchandise sold in Canada, such as IRWA
pin, mug, T-shirt, etc.pin, mug, T-shirt, etc.– Fees charged to place an advertisement on the IRWA Fees charged to place an advertisement on the IRWA
Canadian chapters’ web sites (such as a banner ad or link), Canadian chapters’ web sites (such as a banner ad or link), or to purchase space in Canadian chapters’ newsprints or to purchase space in Canadian chapters’ newsprints (such as a newsletter)(such as a newsletter)
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What the GST Covers:What the GST Covers:
2)2) The IRWA is required to pay The IRWA is required to pay GST/HST at 5%/13% on most purchases GST/HST at 5%/13% on most purchases unless the supplies are explicitly not unless the supplies are explicitly not taxable under “the Acts”. The IRWA is taxable under “the Acts”. The IRWA is entitled to claim an ITC for the GST/HST entitled to claim an ITC for the GST/HST paid, subject to certain restrictions. paid, subject to certain restrictions. Note: Note: Only 50% of the GST/HST paid on meals and Only 50% of the GST/HST paid on meals and entertainment qualifies for an ITC.entertainment qualifies for an ITC.
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What the GST Covers:What the GST Covers:
3) Sponsorship donations received to 3) Sponsorship donations received to fund the IRWA activities are not fund the IRWA activities are not subject to GST/HST, as long as the subject to GST/HST, as long as the payment made by the sponsor is NOT payment made by the sponsor is NOT primarily (more than 50%) for primarily (more than 50%) for advertising in a newspaper, magazine, advertising in a newspaper, magazine, or other publication issued or other publication issued periodically by IRWA or its Canadian periodically by IRWA or its Canadian chapters in Canadachapters in Canada
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Responsibilities:Responsibilities:
In order for this system to work effectively, In order for this system to work effectively, chapter treasurers, IRWA headquarters and chapter treasurers, IRWA headquarters and the accountant must understand their roles, the accountant must understand their roles, responsibilities and key deadlines. All three responsibilities and key deadlines. All three have deadlines and responsibilities to have deadlines and responsibilities to comply with the GST/HST laws. comply with the GST/HST laws.
Chapter Treasurers: Chapter Treasurers:
IRWA Headquarters: IRWA Headquarters:
The Accountant:The Accountant:
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Chapter Treasurer Responsibilities:Chapter Treasurer Responsibilities:
All Canadian chapter treasurers are All Canadian chapter treasurers are responsible for becoming familiar with responsible for becoming familiar with current regulations concerning GST/HST current regulations concerning GST/HST for not-for-profit organizations. For for not-for-profit organizations. For reference, the link for GST/HST Information reference, the link for GST/HST Information for not-for-profit organizations is: for not-for-profit organizations is:
http://www.cra-arc.gc.ca/E/pub/gp/rc4081/http://www.cra-arc.gc.ca/E/pub/gp/rc4081/
All Canadian chapter treasurers are also All Canadian chapter treasurers are also responsible to check for periodic updates responsible to check for periodic updates at the CRA website (www.cra-arc.gc.ca) as at the CRA website (www.cra-arc.gc.ca) as
new policies may come into effect. new policies may come into effect.
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Chapter Treasurer Responsibilities:Chapter Treasurer Responsibilities:
All Chapter treasurers are responsible for All Chapter treasurers are responsible for maintaining accounting records showing maintaining accounting records showing the amounts of GST/HST collectible and the amounts of GST/HST collectible and payable. A summary of the total GST/HST payable. A summary of the total GST/HST collectible and payable must be submitted collectible and payable must be submitted to the “Accountant” and the IRWA to the “Accountant” and the IRWA Headquarters on a quarterly basis. Headquarters on a quarterly basis.
All Chapter treasurers and the IRWA All Chapter treasurers and the IRWA Headquarters are responsible for internal Headquarters are responsible for internal GST/HST account payments. GST/HST account payments.
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The Accountant’s RoleThe Accountant’s Role
Hogg, Shain & Scheck has been Hogg, Shain & Scheck has been engaged to compile GST/HST reports engaged to compile GST/HST reports from all Canadian Chapters and IRWA from all Canadian Chapters and IRWA Headquarters. Once compiled, the Headquarters. Once compiled, the Accountant will complete and submit Accountant will complete and submit the GST/HST returns to IRWA, who will the GST/HST returns to IRWA, who will sign and file the returns with the sign and file the returns with the Canadian Revenue Agency by the Canadian Revenue Agency by the specified deadlines.specified deadlines.
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IRWA Headquarters Responsibilities:IRWA Headquarters Responsibilities: The IRWA headquarters, as the registrant, is The IRWA headquarters, as the registrant, is responsible for signing the GST/HST return.responsible for signing the GST/HST return.
The IRWA headquarters is also responsible The IRWA headquarters is also responsible for filing the GST/HST return on a quarterly for filing the GST/HST return on a quarterly basis with the CRA.basis with the CRA.
IRWA headquarters and/or the Accountant IRWA headquarters and/or the Accountant will have all interaction with governmental will have all interaction with governmental agencies on behalf of IRWA Canadian agencies on behalf of IRWA Canadian chapters.chapters.
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Key Quarterly DeadlinesKey Quarterly Deadlines
All Canadian chapters are required to All Canadian chapters are required to email a quarterly GST/HST report to the email a quarterly GST/HST report to the “Accountant” no later than: “Accountant” no later than: – April 15 (for the 1st calendar quarter)April 15 (for the 1st calendar quarter)– July 15 (for the 2nd calendar quarter)July 15 (for the 2nd calendar quarter)– October 15 (for the 3rd calendar quarter)October 15 (for the 3rd calendar quarter)– January 15 (for the 4th calendar quarter)January 15 (for the 4th calendar quarter)
Note:Note: When a due date falls on Saturday, Sunday, or When a due date falls on Saturday, Sunday, or a public holiday, submission must be made on the a public holiday, submission must be made on the prior business day. prior business day.
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Instructions for Completing The Instructions for Completing The GST/HST ReportGST/HST Report
The Canadian chapter treasurers should The Canadian chapter treasurers should enter on the GST/HST Report only the enter on the GST/HST Report only the totalstotals of revenue and expenses for each major of revenue and expenses for each major category. For example, if a Chapter conducts category. For example, if a Chapter conducts more than one educational course, only the more than one educational course, only the total total revenue and expenses for all courses in revenue and expenses for all courses in the relevant reporting quarter should be the relevant reporting quarter should be entered on their reporting form. entered on their reporting form. The treasurers may add additional major The treasurers may add additional major categories that apply to their specific categories that apply to their specific Chapter activities. Chapter activities. No other modification No other modification shall be made to the standard “GST/HST shall be made to the standard “GST/HST Report”.Report”.
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Using the Forms:Using the Forms:
Receivables and payables are to be Receivables and payables are to be shown shown WITHWITH GST/HSTGST/HST
Revenues, expenses and assets are to Revenues, expenses and assets are to be shown be shown WITHOUTWITHOUT GST/HSTGST/HST
Enter the total GST/HST Enter the total GST/HST collectiblecollectible in a in a separate general ledger accountseparate general ledger account
Enter the total GST/HST Enter the total GST/HST payablepayable in a in a separate general ledger accountseparate general ledger account
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Standard GST Reports:Standard GST Reports:
In reporting and filing, each Chapter In reporting and filing, each Chapter and the IRWA headquarters are and the IRWA headquarters are required to use the standard report required to use the standard report spreadsheet: “GST/HST Report” spreadsheet: “GST/HST Report” supplied by the “Accountant” and supplied by the “Accountant” and identified by its chapter number. identified by its chapter number. To receive your chapter’s form, contact To receive your chapter’s form, contact Fred Nasri, IRWA Chief Financial Fred Nasri, IRWA Chief Financial Officer, at [email protected], or Officer, at [email protected], or telephone (310) 538-0233, ext 139. telephone (310) 538-0233, ext 139.
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GST/HST Report:GST/HST Report:
Electronic Row 4: Enter the year Electronic Row 4: Enter the year Electronic Row 5: Enter the quarter where indicated.Electronic Row 5: Enter the quarter where indicated.Electronic Column A is Major Categories. This is a Electronic Column A is Major Categories. This is a text field that should describe taxable event. text field that should describe taxable event. Electronic Column B, entitled Electronic Column B, entitled A: Revenue (Excluding A: Revenue (Excluding GST/HST)GST/HST) should be a numeric entry showing the should be a numeric entry showing the revenue minus the GST/HST collected at the chapter revenue minus the GST/HST collected at the chapter level.level.Electronic Column C, entitled Electronic Column C, entitled B: GST/HST charged B: GST/HST charged on A)on A) should be a numeric entry showing the should be a numeric entry showing the GST/HST collected on that revenue item at the GST/HST collected on that revenue item at the chapter level.chapter level.
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GST/HST Report:GST/HST Report:
In electronic Column E, entitled In electronic Column E, entitled (C): (C): Expenses (Excluding GST/HST, Meals Expenses (Excluding GST/HST, Meals and Entertainment)and Entertainment) enter the expenses enter the expenses against that taxable activity, excluding against that taxable activity, excluding the GST/HST paid and any meals or the GST/HST paid and any meals or entertainment expenses. entertainment expenses. In electronic Column F, entitled In electronic Column F, entitled (D): (D): GST/HST payable on (C)GST/HST payable on (C), enter the , enter the GST/HST paid on the expenses shown GST/HST paid on the expenses shown in Column E in Column E
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GST/HST Report:GST/HST Report:
In electronic Column G, entitled In electronic Column G, entitled (E): Meals & (E): Meals & Entertainment Expenses, excluding GST/HST Entertainment Expenses, excluding GST/HST should include any meal or entertainment should include any meal or entertainment expenses excluding the GST/HST. That expenses excluding the GST/HST. That GST/HST should be entered into electronic GST/HST should be entered into electronic Column H entitled GST/HST Payable on (E):Column H entitled GST/HST Payable on (E): In electronic Column I, entitled Total In electronic Column I, entitled Total Expenses &GST/HST, the totals of the Expenses &GST/HST, the totals of the previous four columns will be calculated for previous four columns will be calculated for youyouIn electronic Column J, entitled In electronic Column J, entitled NotesNotes, you , you can make any additional comments can make any additional comments
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GST/HST Report:GST/HST Report:
At the bottom of the GST/HST report At the bottom of the GST/HST report form, the spreadsheet calculates the form, the spreadsheet calculates the totals in each column and provides a totals in each column and provides a summary report in the lower left hand summary report in the lower left hand corner that includes the following: corner that includes the following:
Total GST/HST charged by the chapter:Total GST/HST charged by the chapter:
Total GST/HST payable by the chapter:Total GST/HST payable by the chapter:
Total Due To (From) IRWA Total Due To (From) IRWA headquartersheadquarters
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GST/HST Report:GST/HST Report:Upon completing the quarterly form, the chapter Upon completing the quarterly form, the chapter should submit the form as an electronic attachment should submit the form as an electronic attachment to an email and send the email to the “Accountant” to an email and send the email to the “Accountant” at Lin Shen at [email protected] & Irina Palcikova at Lin Shen at [email protected] & Irina Palcikova at [email protected] and Fred Nasri, IRWA at [email protected] and Fred Nasri, IRWA Chief Financial Officer, at [email protected] Financial Officer, at [email protected] the chapter owes money to IRWA, it should send a If the chapter owes money to IRWA, it should send a check at the same time for the amount indicated to check at the same time for the amount indicated to IRWA headquarters, attention Fred Nasri. Checks IRWA headquarters, attention Fred Nasri. Checks should be made to IRWA. The check number should should be made to IRWA. The check number should be indicated on the electronic form as the last item be indicated on the electronic form as the last item on lower left hand side. on lower left hand side.
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GST/HST Report:GST/HST Report:
If IRWA owes the chapter, IRWA If IRWA owes the chapter, IRWA headquarters will send a check to the headquarters will send a check to the chapter within 30 days of receipt of the chapter within 30 days of receipt of the GST/HST report form GST/HST report form
In those occasional situations where In those occasional situations where the balance is zero, no checks need to the balance is zero, no checks need to be written by the chapter or IRWA. be written by the chapter or IRWA.
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Payment of GST/HST between Payment of GST/HST between Chapters and IRWA Headquarters:Chapters and IRWA Headquarters:
The IRWA Headquarters and Chapters will exchange The IRWA Headquarters and Chapters will exchange checks on a checks on a quarterly quarterly basis. basis. A) A) If your chapter has an amount If your chapter has an amount “due to IRWA “due to IRWA Headquarters”Headquarters”::– Send a check to IRWA Headquarters. The amount Send a check to IRWA Headquarters. The amount
of the check must agree with the amount “due to of the check must agree with the amount “due to IRWA headquarters” on your emailed quarterly IRWA headquarters” on your emailed quarterly report.report.
B) B) If your chapter has an amount If your chapter has an amount “due from IRWA “due from IRWA Headquarters”Headquarters”::– IRWA Headquarters will send your Chapter a IRWA Headquarters will send your Chapter a
check. The amount of the check will agree with check. The amount of the check will agree with the amount “due from IRWA headquarters” on the amount “due from IRWA headquarters” on your emailed quarterly report.your emailed quarterly report.
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Questions/Comments?Questions/Comments? Please address all questions and comments about GST Please address all questions and comments about GST issues to:issues to:
Fred Nasri, CPA, CAE, R/E Broker, GR1Fred Nasri, CPA, CAE, R/E Broker, GR1
IRWA Chief Financial OfficerIRWA Chief Financial Officer
[email protected] [email protected]
Telephone 310-538-0233, ext 139Telephone 310-538-0233, ext 139
oror
Rakhshan MazareiRakhshan Mazarei
Accounting & Personnel ManagerAccounting & Personnel Manager
[email protected]@irwaonline.org
Telephone 310-538-0233, ext 131Telephone 310-538-0233, ext 131
IRWA HeadquartersIRWA Headquarters
19210 S. Vermont Ave, Bldg A, Suite 100,19210 S. Vermont Ave, Bldg A, Suite 100,
Gardena, CA 90248Gardena, CA 90248
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