How to Revoke the Quick Method
(Canada)
How To Start Using The Simplified Method of Claiming ITCs
Can I switch methods?
If we have been filing under the QUICK method for a number of years, are we able to switch to the SIMPLIFIED method for 2011 without any prior approval from the government?
Hey there,
Nope, you can't just switch. CRA's Publication RC4058 Quick Method of Accounting for GST/HST explains how and when you can revoke your election:
"You can revoke the election only after your Quick Method election has been in effect for at least one year.
To revoke the election, complete and send Form GST74, Election and Revocation of an Election to Use the Quick Method of Accounting, to your tax services office.
You have to revoke the election by the due date of the GST/HST return for the last reporting period in which you wish to use the Quick Method.
If you revoke the election, you have to wait at least one year before you can elect to use the Quick Method again.
In addition, if you stop using the Quick Method, you cannot claim ITCs for any tax paid or payable on purchases you made while using it, other than the ITCs you would have been entitled to claim, but did not claim, while you were using the Quick Method."
There is one exception to this rule. Here it is:
"For reporting periods that include July 1, 2010, or for any reporting period that begins after July 1, 2010, but before July 1, 2011, you can revoke your Quick Method election, even if it has not been in effect for at least one year."
P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.
Comments for How to Revoke the Quick Method
|
||
|
||
