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GST — tire installer neglecting to bill GST

My client was a tire installer. He knew nothing about dealing with the GST. He worked for a tire company, and was told by the company to issue invoices rather than being an employee, so he did so. He never registered for GST.

The tire company was audited, and out of the blue, my client was issued a GST assessment for over $23,000. He had no idea what do to and what it was about. His wife found my Web site and they came to see me.

In a single meeting with my client and his wife, I identified what had happened and explained to them how the GST had to be handled. I got on the phone with the accounting manager at the tire company, who agreed to pay the GST to my client so that it could be remitted. Combined with "wash transaction" relief of interest and penalty, and input tax credits that could be claimed by my client, this eliminated entirely the cost of the assessment.

Problem vanished!