So, for clubs in BC how do you guys handle the HST on match entries? We didn't charge any on our match and I caught #### for it, as its income for the club and we are already required to charge it on other things the club charges for.
IPSC matches and taxes
- Thread starter Slavex
- Start date
I guess another question for the board accountants in line with this question is, are individual leagues within a club setting tied to a set of accounting principals?
I know at two clubs I've been a member, leagues were responsible for thier finances and ultimately remitted surplus income to the club. The general principal seemed to be that surplus funds were first used to make sure the leagues needs were maintained (targets and props) and operating at a deficit was not a viable option.
So I guess the simple version of this question is, would CRBA freak if the income of the club was broken down as (membership dues)+(Kitchen profit)+(league surplus)?
I know at two clubs I've been a member, leagues were responsible for thier finances and ultimately remitted surplus income to the club. The general principal seemed to be that surplus funds were first used to make sure the leagues needs were maintained (targets and props) and operating at a deficit was not a viable option.
So I guess the simple version of this question is, would CRBA freak if the income of the club was broken down as (membership dues)+(Kitchen profit)+(league surplus)?
stormbringer
CGN Ultra frequent flyer
- Location
- S.W. Ontario
Not to hijack but what a concept.
I was just told last week that two groups in particular were "ok" to run at a loss because other groups will pick up the slack. I asked if the other money makers had been consulted with his concept and never recieved a reply back. Personally I hate parasites in general.........but more specifically the ones that do not even understand what they are.
Slavex...........to your point we are currently changing our accounting format to address the very fact you speak of. Does your club have a Junior Program?
The idea seemed to be that while the club supports the whole spectrum of shooting sports, and will provide a little seed money and support, the individual section either grows and sustains itself, or dwindles and dies off.
A youth league, registered as a charity is a great way to legally shed some tax burden, and within reason is one of those areas that I would not mind supporting if run at a reasonable deficit.
just having some fun
CGN Ultra frequent flyer
The only event (losing $$) /s i am ok with is running events for Kids
( one or two times a year)
if it is run every week and it loses lots of $$ people using it should cough up more
ok somewhat if new shooters events run at say a 5% loss depending what it is
but having a event that looses money year after year is no good you need to put money into club savings for expences that pop up from time to time
new lawn mower to berm work to a new roof etc-etc etc
if you have events that run at a loss you have to increase club fees fro everyone to pay for a loss of a few.
( one or two times a year)
if it is run every week and it loses lots of $$ people using it should cough up more
ok somewhat if new shooters events run at say a 5% loss depending what it is
but having a event that looses money year after year is no good you need to put money into club savings for expences that pop up from time to time
new lawn mower to berm work to a new roof etc-etc etc
if you have events that run at a loss you have to increase club fees fro everyone to pay for a loss of a few.
My old club operated under the impression that as a non-profit and without share corporation, we were exempt. For many years that's how they operated. We got a new treasurer and a new accountant who realized we were screwed three ways from Sunday if we were caught.
They went threw the books with a fine tooth comb and made sure we were OK, then voluntarily went to Revenue Canada to fix the problem. Revenue Canada were very reasonable. We had to pay a few years back GST, but not the whole unpaid total (if i recall correctly) and no fine.
SVISTI1911
CGN Regular
- Location
- Kitchener, Ontario
So what brought this issue to the forefront?
With the new HST requirements in BC our club had to start charging tax in membership dues and any other money the club charges for, rentals etc. Things like our drop in fee we've had to eat the 12% as its sort of ridiculous to ask people to pay $11.20 instead of an easy $10.
When we formed the IPSC club we decided it was much easier to deposit the money through the main club instead of opening our own account. The money will be ours, not the main clubs, ever (our sub clubs manage all their own inflows and outflows, rentals and membership dues are used for general expenses and such). However even if we opened our own account, it needs to be reported in the year end books, and I'm sure Rev Can would be interested to know why no tax had been collected if we failed to do that.
We are a registered non profit, but we are well above the tax exempt line for money we bring in.
When we formed the IPSC club we decided it was much easier to deposit the money through the main club instead of opening our own account. The money will be ours, not the main clubs, ever (our sub clubs manage all their own inflows and outflows, rentals and membership dues are used for general expenses and such). However even if we opened our own account, it needs to be reported in the year end books, and I'm sure Rev Can would be interested to know why no tax had been collected if we failed to do that.
We are a registered non profit, but we are well above the tax exempt line for money we bring in.
