Well, January 1st, 2008 marked the start of another cut in the GST. Now standing at 5%, the reduced tax rate is designed to bring people back on board the consumer train and keep Canada out of a recession. Of course, the politicians will tell you it is a long-overdue break for Canadians, and that is true on many levels. Either way, the reduction in the GST rate is great, but I still wonder what impact it will have on small business owners besides being a headache for their accountant.
For HSA holders, the only perk is that the commonly charged service or administrative fee most HSA account holders are charged will be reduced by 1%. This means that on or after January 1st, all billings you receive from your HSA administrator should have the GST reduced by 1% – but don’t confuse this with the overall admin fee – it is just the taxes being adjusted.
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