Padgett Business Services, the Small Biz Pros, provides professional small business accounting, tax preparation, bookkeeping, and payroll processing services in London in the province of Ontario, Canada.

RELATIONSHIPS

"Padgett knows my business inside and out. In fact, sometimes I think they know more about my business than I do. And they are always there when I need them"

DEPENDABILITY

"Dependability was a critical factor for me when selecting a service provider. Padgett has exceeded my expectations"

EXPERIENCE

"I remember thinking my Padgett representative really did his homework, because he was so plugged into the realities of small business. Then it dawned on me, he runs his own Padgett office, which is a small business. He's talking from experience".

PEACE OF MIND

"I sleep better at night with Padgett on my team. Taxes, Payroll, government compliance - I don't worry about those things anymore and now I'm able to really focus on running my business."

QUALITY RELATIONSHIPS BREED SUCCESS

Integrity - This essential quality of our relationship will allow you to focus on what's most important: building and growing your business.

QUALITY RELATIONSHIPS BREED SUCCESS

Integrity - This essential quality of our relationship will allow you to focus on what's most important: building and growing your business.

UNIQUE BUSINESS ISSUES REQUIRE UNIQUE SOLUTIONS

We understand that no two small businesses are alike. That's why we offer a complete range of services. We analyze your individual needs and put together the combination of services that works for you, the small business owner.

Where Your Success
Takes Root

Tax Alerts

Instalment payments following harmonization

2011-10-05

If your business is situated in either Ontario or British Columbia and you have an annual reporting period that begins in 2010, there are proposed changes for calculating the amount of your instalment payments for that reporting period. Your instalment payments that become payable after the first fiscal quarter beginning on or after July 1, 2010, will be equal to the lesser of ¼ of the amount of net tax for the current year and ¼ of 240% of the amount of the net tax for the previous year.

Example
You are a corporation situated in Ontario with a December 31 fiscal year-end. Your net tax for the 2009 fiscal year was $8,000. Your net tax for the 2010 fiscal year will be $9,000.

You determined under the pre-July 1, 2010, instalment payments calculation rules that your instalment payments would be $2,000 ($8,000/4). However, your instalment payments beginning in October 2010 will be calculated using the new proposed instalment payment rules.

As your corporation is situated in Ontario, your instalment payments beginning October 2010 will be $2,250 as this amount is the lesser of:

1/4 x $9,000 = $2,250

1/4 x (240% x $8,000) = $4,800

You will need to increase your instalment payments due on or after October 2010, to $2,250 to reflect the increase in net tax.

If your business is situated in either Ontario or British Columbia, and also in Nova Scotia, New Brunswick or Newfoundland and Labrador, and you have an annual reporting period that begins in 2010, there are proposed changes for calculating the amount of your instalment payments for that reporting period. Your instalment payments that become payable after the first fiscal quarter beginning on or after July 1, 2010, will be equal to ¼ of the amount of net tax for that annual reporting period.

Example
You are a corporation with a December 31 fiscal year-end situated in both Ontario and Nova Scotia. Your net tax for the 2009 fiscal year was $8,000. Your net tax for the 2010 fiscal year will be $9,000. As the business is situated in both Ontario and Nova Scotia, your instalment payments beginning in October 2010, will be $2,250 (1/4 × $9,000).

Forms and publications

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