Frequently Asked Questions About How to Read Your New Retail Sales Tax Statement of Account
- Why is the Ministry of Revenue introducing a Retail Sales Tax Statement of Account at this time?
- What is a Statement of Account?
- Why did I receive a Statement of Account?
- What type of information is on the Statement of Account?
- How often will I receive a Statement of Account?
- Why do I have a balance owing on my Retail Sales Tax account?
- How is the balance column calculated?
- Since my Account Balance is now included on my RST return, why am I receiving a Statement of Account?
- Why was I charged interest on my account?
- What is the difference between a Statement of Account and a Notice of Assessment?
- Where can I get more information about the details on my Statement of Account?
Why is the Ministry of Revenue introducing a Retail Sales Tax Statement of Account at this time?
In December 2007, the Ministry of Revenue implemented a new computer system that generates the Statement of Account for Retail Sales Tax (RST) clients. The Statement of Account will allow the ministry to communicate sales tax balances owing to you on a timely basis and provide you with a means to make a payment (tear-off payment voucher). This will help you meet your tax obligations.
What is a Statement of Account?
The new Statement of Account provides you with details of the financial activity on your Retail Sales Tax account when there is a balance owing.
Why did I receive a Statement of Account?
If you have a balance owing on your Retail Sales Tax account you will receive a Statement of Account. This new monthly statement will make it easier and more convenient for you to comply with Ontario's tax laws and meet your tax obligation.
What type of information is on the Statement of Account?
The Statement of Account will show you the amount of tax reported on your RST return as well as any outstanding tax from a regular filing period or assessment. It will also reflect penalty and interest charges as well as payments and credits (including unclaimed compensation) – for tax periods where there is a balance owing ONLY. A tear-off payment voucher is also included for easy payment. See the How to read your new Retail Sales Tax (RST) Statement of Account for more information.
How often will I receive a Statement of Account?
Starting January 2008, you will receive a Statement of Account on a monthly basis if you have a balance owing on your Retail Sales Tax account. If you have multiple tax accounts, you will receive a Statement of Account for each account that has a balance owing. The Statement of Account will be issued on the first business day of the month. If you don't have a balance owing on your account, or have a credit balance, you won't receive a Statement of Account.
Why do I have a balance owing on my Retail Sales Tax account?
You may have an amount owing on your account as a result of one or more types of tax assessments, e.g. failure to remit all taxes collected, audit assessment, penalty assessment for short payment of tax reported or late filing of returns, etc.
How is the balance column calculated?
The balance is the amount of tax owed, plus penalty/fee and interest, minus credits/payments for that tax period. The total of all the balance amounts for each tax period will add up to your account balance shown on your Statement of Account. See the How to read your new Retail Sales Tax (RST) Statement of Account for more information.
Since my Account Balance is now included on my RST return, why am I receiving a Statement of Account?
Your Retail Sales Tax return shows only your account balance to make it easier for you to complete your return and meet your tax obligations. A Statement of Account details how the balance owing came about (e.g., tax assessments).
Why was I charged interest on my account?
Overdue balances are subject to interest charges that are compounded daily. The interest is calculated from the day the amount owing was due until it is paid in full.
What is the difference between a Statement of Account and a Notice of Assessment?
A Statement of Account is sent to you on a monthly basis and shows how the balance owing accumulated. A Notice of Assessment is sent to you when your account is assessed for a specific tax period, resulting in a balance owing for that specific tax period.
Where can I get more information about the details on my Statement of Account?
For more information about the details on your account please refer to your Notice(s) of Assessment. You can also contact your local Ministry of Revenue Tax Office for an explanation of the amounts shown on your Statement of Account. A bulletin explaining how to read your Statement of Account is also available.
