Tax Authorities

A Tax Authority represents the government body that collects tax from your business — your national tax office, a regional VAT authority, or a state sales tax board. Configuring each authority in CifraHQ gives collected tax a dedicated GL liability account, so you always know precisely what you owe and to whom before it's time to remit.

Where to find it

Go to Master Data > Accounting > Tax Authorities.

How to create a Tax Authority

1. Click New.
2. Enter a Code (e.g., GST, VAT, IVA).
3. Enter a Description (e.g., Goods and Services Tax).
4. Select a GL Account — this must be a liability account where collected tax accumulates until remittance.
5. Save.

Relationship to Tax Codes

A Tax Authority is the parent of one or more Tax Codes. Each Tax Code defines a specific rate (e.g., 7%, 10%, 0% exempt) and belongs to an authority. When CifraHQ posts a transaction, the tax amount is credited to the authority's linked GL liability account.

Paying tax

When it's time to remit collected tax, use Tax Payments (Accounting > Tax Payments) to record the remittance and clear the liability account balance.

Tips

• If you operate across multiple tax jurisdictions, create a separate authority for each one — for example, Federal GST and Provincial PST. Each gets its own liability account, so you can see exactly what's owed to each jurisdiction at a glance.
• The balance on the linked GL account is your real-time view of accrued tax liability. A growing balance means more to remit next period.

Related: Tax Codes · Tax Payments · Chart of Accounts · Form 430 (ITBMS)