Business return and Unpaid HST

I have a new client who has not filed his self employed business HST in 2 years nor filed his T1 returns. I have entered his gross sales $40,000 so, do I leave the HST paid field blank because he has not paid and adjust his return when he does or do I just enter what he should have remitted?

Answer

Do not include HST/GST collected in the income on the T1. The amount reported should be NET of GST/HST or enter the Gross and use the line available to enter the amount collected for GST/HST to reduce the income. It is not income to his business whether he has filed his GST/HST returns yet or not, those need to only be reported on the GST/HST returns to also be filed.

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