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MarkusK94
August 4, 2022
Question

CRA GST/HST reassessment - How to record deductions from a credit owed?

  • August 4, 2022
  • 1 reply
  • 0 views

Hi there,

 

I prepared and filed my GST/HST return - I do so monthly.

 

I'll use arbitrary figures here for my current question related to this

 

I filed my GST/HST for a credit owing to me of $30,000

 

Upon CRA assessment, I received $26,900 with the following deductions noted;

 

$3,000 deduction corporate taxes owing

 

$100 deduction late filing fees.

 

I've been able to record and match the $26,900 received in my chequing account and apply a matching amount to the GST/HST credit

 

How to I resolve the remaining as the taxes section still shows a $3,100 credit as owing to me while the penalty and corporate filing need to be logged to match against this somehow.

 

Thanks

1 reply

Jen_D
Jen_D
August 4, 2022

I'm here to help you out with this sales tax concern, @MarkusK94.

 

I can walk you through the steps to help resolve the balance on your sales tax account. For this, you can adjust the sales tax liability to offset the balance that's still showing in your account.

 

Here's how:

 

  1. Go to the Taxes menu, then select Sales tax.
  2. Choose Prepare return under the Filings section.
  3. On the Prepare return page, choose the Adjust link on the far right of the line you wish to adjust.
  4. Input the amount of tax you would like to add to the line (to reduce the line, enter a negative number).
  5. Select your adjustment account. This may be an income account for tax credits, or if your Tax Payable account is correct, you can select the Payable account to adjust the return without affecting your Chart of Accounts.
    Note: We recommend consulting an accounting professional to ensure correctness on this step.
  6. Press Save to save the adjustment.

Here are some links that talks about sales tax adjustments and how you should use it:

 

Reach out back to me if you have additional questions about the process or if you need more help with the sales tax feature in QBO.

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