HST Bonus from Revenue Canada

by Judy
(Ontario)

Our company received a $1,000.00 from the government to help with the HST transition.

We deposited this 'free money' in the bank, so I know I debit the bank account, but what account do I credit?

Thanks for helping. Judy

Hi Judy,

I would credit "Other Income".

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Comments for HST Bonus from Revenue Canada

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Feb 22, 2011

I agree
by: judy, Ontario

Yes, Other Income was my thought, too. Would that have any effect on corporate taxes?

Judy, It is my understanding that the "bonus" is taxable income.

Feb 23, 2011

I guess that figures...
by: judy

The proverbial "one hand gives, while the other takes away"? It does answer the original question, though. I was looking for a way to make it non-taxable.

Feb 17, 2012

Incentive from Bank
by: Sharon, Calgary, AB, Canada

One of my client's signed up for a new credit card to take advantage of a bank promotion. How I understand this promotion to work is if you signed up and purchased up to a certain dollar amount before the deadline you would qualify for a bonus pay out. In doing so my client was been paid out a bonus. The bank statement shows this bonus as a deposit/credit.

I am struggling with where to record this type of transaction. I don't think it should be recorded as other income. Would you have any suggestions?

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