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I am having a real hard time getting my head around the concept that the new HST (Harmonized Sales Tax) in Ontario is good for me.
Spinach and Brussels sprouts are good for me. And there again, I don’t actually see any real tangible benefits but, I listen to the experts and I accept what they’re saying. After all, they are the experts.
As a small business owner, applying the same principle means accepting what the experts say and knowing it’s good for you.
So, I decided to take a few moments to see what the experts, our Government, had to say about how the new tax would benefit ME. And here’s what I found:
On the Ontario Government website it states, ‘Businesses will save over $500 million a year in administrative and compliance costs alone’.
OK, 500 million. HST is beginning to sound better by the minute.
According to the Industry Canada website in 2008 there were 880,842 business establishments in Ontario.
So a quick calculation would mean, in the perfect scenario, all things being equal, my company’s savings would be $567.64 a year.
But all things are not equal and, undoubtedly, all businesses will not find their $567.64 savings at the end of the year!
For small businesses that are not currently required to collect Retail Sales Tax, this new harmonized tax will be an added burden not only administratively but by impacting cash flow. And then there are the internal systems that need to be amended to HST, the updating of websites, the reprinting of materials, the list goes on.
At the end of the day, I know that what’s done is done. On July 1st ‘harmony’ will prevail and I take comfort in knowing that we did this all before when the ‘temporary’ tax called GST was imposed. No doubt we can do it again.
So I will heed the wisdom of the experts, eat my spinach, and learn to like it!
- Cathy Lawn
