Did You Review Your ITC Estimator?

Did You Review Your ITC Estimator

The collective term for any technique used to calculate GST credits for unprocessed tax bills is an input tax credit (ITC) estimator.

Make sure you know the routine procedures required to reduce your risk of excessively claiming GST credits if you utilize an ITC calculator to claim unprocessed tax invoices.

Our most recent reviews found numerous instances where necessary standards weren’t met, leading to inconsistencies like:

  • Keeping track of the projected GST credit claim while excluding the actual GST credit entitlement for each tax period from the comparison.
  • Not modifying the estimated GST credit to reflect changes in the business.
  • Use a methodology based on historical average GST credits but fails to adequately account for cyclical business swings that alter the GST credit eligibility in a tax period.
  • Mistakes brought on by failing to check the ITC estimator at least once every six months.

Verify that you are fulfilling all ITC estimator standards to ensure accurate reporting and to prevent fines and penalties for exceeding GST credit rights.

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