Final answer:
The correct answer is b. Input Tax Credit. This allows businesses to recover the GST/HST they pay on their business expenses, differentiating it from the Output Tax, which is collected from customers.
Step-by-step explanation:
The credit that a company receives for the GST/HST it pays on business expenses is known as the Input Tax Credit (ITC). Essentially, when businesses incur GST/HST on their purchases and expenses used in the course of their commercial activities, the ITC allows them to recover these costs.
It is different from the Output Tax, which is the amount of tax a business collects from its customers on sales. The business will then remit the difference between the collected output tax and the input tax credit to the government. This system ensures that the GST/HST is a consumption tax paid ultimately by the end consumer, rather than a burden on the businesses that facilitate the supply of goods and services. Payroll taxes, on the other hand, are distinct from GST/HST and are related to employee wages, such as employment tax, unemployment compensation, social security insurance, and some state government charges.