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Joe asked:

I run a am a independent multilevel marketer. My parent company collects GST for any product that is purchased by members in my downline. My question is; Why is the CRA asking me to pay GST on my commission income?

Jim Innes answered:

It appears that your reader is self employed. If his sales are greater than $ 30,000 per year and he is selling a taxable product he will be required to charge and remit GST/HST. He should consider going on the quick method. This will mean he collects the full amount of the tax buy get to remit a smaller amount.

He should ask his employer for advice on the need for registration, it is unlikely that he is the only salesman with this problem.

About the author

Jim Innes is a Partner at Innes Klayman LLP, Chartered Accountants.

He can be contacted at: 416-590-1728, Ext 314.

His bio page can be viewed here: http://www.innesklayman.ca/JInnes.htm.

 
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