July 23rd, 2012
John Healy, STAR Company Account Manager / Bookkeeper, recently sat down for a casual interview with…. himself.
Here’s John’s hilarious and practical look at the topic of Canada Revenue Agency’s Public Body HST Rebates for non-profit organizations.
Blog John: Hey John…Are those pajamas you’re wearing?
John: What? No…what I am wearing are in fact designer sleepwear.
Blog John: Oh… Cus they look like pajamas.
John: Well they’re not! Do you have a question?
Blog John: Oh right. Well, a relative of my uncle’s son’s cousin’s boss just told me that the government has a tax rebate program for Public Service Bodies. Is this true?
John: An excellent question. And yes, your uncle’s son’s cousin’s boss is correct. It’s called The Public Service Body Rebate and you can find all kinds of information on Canada Revenue Agency’s website.
Blog John: Cool! So, what’s a Public Service Body?
John: Well, according to the CRA’s website, a Public Service Body is defined as ‘a registered charity, qualifying non-profit organization, municipality, school authority, hospital authority, public college or university’.
Blog John: Qualifying?
John: For a Non-Profit Organization, 40% of your revenue for the fiscal year must come from some level of government funding. Oh, and you’ll need to apply with an application called the “GST523-1 Non-Profit Organizations – Government Funding” which can be found on CRA’s website.
Blog John: So, does designer sleepwear usually have holes like that?
John: They’re fashion tears. They’re designed that way!
Blog John: Oh? Cus they look like holes.
John: Well they’re not!
John: Well to be honest they’re actually “refunding” a percentage of the amount of the GST/ HST paid or payable on eligible purchases and expenses used in your organization’s activities. These percentages depend on the type of organization you are, the activities you perform, and your province of residence.
Blog John: “Giving”, “Refunding”..whatever. How do I get in on this?
John: You can get the applications at CRA’s website. They are called the “GST66
Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund”
and the “RC7066-SCH Provincial Schedule – GST/HST Public Service Bodies’ Rebate”
Blog John: What if I’m not registered for GST/HST?
John: You can still apply. And here’s the great part! You can claim retroactively.
Blog John: Really?
John: Yes, if you are a GST/HST registrant, you have up to four years from the due date
of your GST/HST return for the claim period in which you incurred the expense to file a
Blog John: What if you’re not a GST/HST registrant?
John: If you are not a GST/HST registrant, you have up to four years from the last day of the
claim period in which you incurred the expense to file a rebate application.
Blog John: Well, this is great news. I think I’ll contact my bookkeepers over at STAR
Company and ask them to get on this for me.
John: Great idea! Glad I could help.
John: Anything else I can help you with today?
Blog John: So, I guess floral patterns are the latest fashion thing.
Blog John: Your designer sleepwear.
John: It’s laundry day alright! It’s all I could find!
Blog John: Oh
John: …they’re my wife’s.
Blog John: I see.Tweet