Helping you manage your indirect tax responsibilities
One way or another, most transactions involve indirect taxes. Since these transactions can include sales, purchases, imports/exports, and payroll, indirect taxes can affect more than cash flow - they can also represent a significant cost for your business.
How you're taxed
When developing an effective overall tax strategy, you should consider the broad impact of indirect taxes on your organization. Canadian indirect taxes include:
- GST, HST, QST, provincial sales tax (PST)
- Payroll taxes (e.g., CPP, EI, Ontario EHT, and WSIB)
- US sales and transaction taxes
- Value added taxes in the EU and other jurisdictions.
Indirect taxes also include premium taxes and fuel taxes levied by the provincial and federal governments in Canada.
Indirect taxes add up
Businesses in Canada often pay more in sales and other indirect taxes than they pay in income tax. Tax managers should carefully manage the impact these taxes have on their organization. Managers should confirm the accuracy and completeness of the indirect tax amounts reported on returns, and in the financial statements, while ensuring that they are not missing out on refund opportunities.
