When GST/HST Filings Fall Behind: How to Get Your Account Back on Track

Many sole proprietors register for GST/HST once their business income grows beyond the small supplier threshold. At first, most people stay on top of their filings, but over time the paperwork side of running a business can fall behind.

When GST/HST returns remain outstanding, the CRA may eventually estimate the tax they believe should have been reported. These estimates are called notional assessments, and they are often higher than the actual amount that should be owed.

This happens because the CRA may estimate the business revenue but does not know what expenses or input tax credits the business may be entitled to claim.

When I work with business owners who are behind on their GST/HST filings, we usually start by reconstructing the business activity for those missing periods. This often involves reviewing bank deposits, invoices, and expense records to determine the correct GST/HST amounts.

Once the returns are prepared properly and submitted, the CRA replaces the estimated balances with the correct calculations.

Many business owners feel a huge sense of relief once their GST/HST account is brought back up to date, because it removes uncertainty and allows them to move forward with their business operations.