Participating provinces - Nova Scotia, New Brunswick, and Newfoundland and Labrador. The HST rate in participating provinces is 14% and the GST rate in the rest of Canada is 6%.
Payroll deductions - Income tax deductions, Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, and Employment Insurance (EI) premiums which are deducted from an employee's wages or salary and sent regularly to us. Employers also make their own contributions to the CPP or QPP, and EI.
Penalties - Amounts taxpayers or registrants must pay if they fail to file returns or remit or pay amounts owing on time, or if they try to evade paying or remitting tax by not filing returns. Penalties must also be paid by people who knowingly, or under circumstances amounting to gross negligence, participate in or make false statements or omissions in their returns, and by those who do not provide the information required on a prescribed form.
Permanent establishment of a person generally means:
- the person's fixed place of business through which the person supplies property or services, including a place of management, a branch, an office, a factory, or a workshop; or a mine, an oil or gas well, a quarry, timberland, or any other place where natural resources are extracted; or
- a fixed place of business of someone else (other than a broker or an agent) who is acting in Canada for the person and through whom the person supplies property or services in the ordinary course of business.
Person - An individual, a partnership, a corporation, the estate of a deceased individual, a trust, or any organization such as a society, a union, a club, an association, or a commission.
Personal tax credit return (Form TD1) - The first income tax form a person has to complete when starting a new job. It tells an employer how much income tax to deduct from the employee's pay.
Place of business - Means any premises, facility, or installation used to carry on business, whether or not it is used exclusively for that purpose. Premises, facilities, or installations may be considered to be place of business whether they are owned or rented, or, in some cases, where they are simply available to the business.
Prepaid expense - An expense you pay for in advance; an expense you incur for goods and services you will receive in a later fiscal period amounts you pay in interest, income taxes, municipal taxes, rent, dues, or insurance for later fiscal periods. These amounts are included as assets on the balance sheet at the end of a fiscal period.
Proceeds of disposition - Usually, the selling price of property when it is disposed of. Proceeds of disposition also include compensation received for property that has been destroyed, expropriated, stolen, or damaged. It is also the fair market value of property when it is transferred to another person, or when there is a change in its use.
Professional corporation - A professional corporation is a corporation that carries on the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian, or chiropractor.
Professional dues - Membership fees paid to maintain a professional status recognized by law, such as lawyers' annual law society fees.
Profit and loss statement - Same as an income statement.
Property - Any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money.
Proprietorship - A non-incorporated business entirely owned by one person. Same as a sole proprietorship.
Public institution - A registered charity for income tax purposes that is also a school authority, public college, university, hospital authority, or a local authority determined to be a municipality.
Public service body - A charity, non-profit organization, municipality, school authority, hospital authority, public college, or university.
