Liberals’ tax-holiday plan divides business owners as reality of preparing for it sinks in

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Figuring out what’s taxed and what isn’t, and the time-consuming bother of changing payments systems are just two of the headaches that have many wondering whether the tax break is worth it

If you work with yarn and need some guidance, Sharon Hudemka has got you sorted. Along with spinning wheels, needles and other supplies, the owner of Knitting Time in Lethbridge, Alta., carries more than 2,000 instructional pamphlets, pattern books and other printed materials that cover fibre crafts such as knitting, crochet and cross-stitch.approaches, for two months starting on Dec. 14, Ms. Hudemka has a problem.

Not all industry associations agree. The Canadian Federation of Independent Grocers, for example, applauded the government’s move, even though “the administrative challenges on this tax change are significant and real,” Gary Sands, CFIG’s vice-president of government relations, wrote in an e-mail.Many stores are facing varying tax rules for similar items once the moratorium takes effect. Buying your child a picture book for the holidays? That’s tax-free. A colouring book? No such luck.

Michelle Wasylyshen, president and chief executive officer of industry association Ontario Craft Wineries, heard from one of her members that a corporate client called to say they would be placing a $10,000 order after Dec. 14. The client would usually submit that order in late November.she’s heard similar stories from other wineries.

As well, because the changes will come midmonth, monthly revenue analysis will need to be done carefully to account for the different levels of tax collection. Confusion among the shopping public is also a concern for business owners, however. David Owens, the owner of Sherbrooke Liquor in Edmonton, has been worried about his staff facing anger from customers who may have heard about the tax holiday but are unaware that it doesn’t begin for another two weeks. Mr. Owens says his two stores could also face a more intense rush than usual between Dec. 14 and New Year’s Eve.

 

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