by Tod Strachan

GST. We all know this means
the Goods and Services Tax that’s
supposed to replace the Federal |
Sales Tax as of January, 1991.
People have come up with what
they believe to be better names for
the GST, but many of those can’t
be printed here.

Still, if you go to one of Revenue
Canada’s two-hour seminars that
are supposed to take the mystery
out of the GST, you may leave just
as confused as you were before
you entered, and bearing a new
name of your own for the GST. In
fact, if you’re in business for the
fun of it, you may even think of
retiring...unless you’re an accoun-
tant or lawyer.

Revenue Canada had two even-
ing seminars in Terrace last week
and both were well-attended by
about 50 local businessmen. There
is definitely an interest, or fear,
driving businesses to leam more
about the GST. What becomes
Clear once these seminars begin,
however, is that the GST is too
complex to describe to a number
of different businesses at once.
Everyone is affected in a slightly
different way. It depends what they
sell or do.

It’s not that the government isn’t
spending a lot of money trying to
educate us. There’s been television
advertising, and these travelling
seminars cost a great deal of
money for transportation, Lodging
and food. There are "free" hand-
outs; 25 different ones, depending

Alcan,
CASAW
sign for
three years

Local 1 of the Canadian Associ-
ation of Smelter and Allied
Workers (CASAW) ratifed a new
collective agreement with Alcan
last week by a 62,5 percent mar-
gin.

The offer, sweetened a little from
the first which CASAW members
declined by a 57.4 percent vote,
gives CASAW and Alcan a new
three-year contract with an immed-
iate six percent wage increase
effective July 23 and a $1,750
lump sum signing incentive.

Down the road, there’s a $1.24
across-the-board wage increase in
the second year of the contract,
accompanied by a cost of living
allowance that will take effect
when the inflation rate hits six
percent. The third year of the
contract will give. workers a six
percent wage increase and contains
an identical COLA clause.

The original offer, which was
rejected, contained only a $1,500
Signing incentive and no COLA in
the second year of the contract.

Alcan employees walked off the
job at midnight, July 23, and were

back to. work on July 26. During.

this period, about 500 members of
Alcan’s management team main-
tained essential plant operations.

A10 Terrace Review — Wednesday, August 1, 1990

Say that again...

on whether you’re a student, a
charitable organization or one of
23 different businesses. And the
government is setting up offices in
our province.

One is currently being set up in
Prince George (the phone number
is 1-800-561-6990 if you’ te intere-
sted) fo serve northern B.C. and
the Yukon, which contains the
northern segment of the 240,000
new taxpayers the government
expecis to have next January in
this province and territory. In this
Same area, there are now only
about 8,500 manufacturers who
pay the Federal Sales Tax.

This was apparent at last week’s
Seminars in Terrace. Bill Dixon
began with an overview of the new
system. For this, people were
asked to lear a few simple defin-
itions; Input Tax Credit, Taxable
Supply and rebates for MUSH,
NPO’s, charities and non-residents
were among them. Two of these
terms, MUSH and NPO’s were
never defined, but perhaps they're
not important in this part of the
land. There were other terms as
well; the Quick Method and
Streamlined Accounting for
example. And then there was the
zero-rated tax concept, a zero-rated
tax. This means you charge the tax
out af zero percent so you can
claim a rebate on the goods and
services that went into creating the
product.

Then came the question period...

and the confusion, The reason it

was confusing was that the answer
fo one person’s questions was
useless information to another.
One local businessman, for
example, wanted to know what to
do when a non-resident spends
money in his shop. Non-residents
aren't supposed to pay the tax, but
they do, When they return home,

however says Dixon, they have a

by Tod Strachan
year to fill out a form, mail it to y

Ottawa, and they will get a refund
for all the GST they paid. This
includes the tax they paid on their
accommodation and food. There is
an exception. They have to have
paid more than $20 in GST before
they can apply.

It would be straightforward if
exporting logs was as simple, but
that’s not the case. How do we
know? Well, someone asked.
Dixon’s answer: Yes you do
charge the tax, but at zero percent,
"That means I have to keep track
of the destination of every load of

logs," asked the contractor? "Yes ppp manager Paut Williams may
you do," replied Dixon. If the load ave come up with the only solu-
of logs is going to the local mill, tion.
you charge seven percent. IF it’s Alexander Highet, vice-president
getting dumped in the water for and regional general manager of
Japan, you charge zero percent. —_the Federal Business Development
Charging GST on food is suppos- Bank’s B.C. and Yukon region,
ed to be simple. Basically, says says FRDB has already planned at
Dixon, if it's not for immediate least one more go-around of the
consumption you don’t charge the GST circuit this fall, but following
tax. This is straightforward ifthe meeting with Williams in Ter-
customer is buying canned goods, race Jast week the format of these
unless he’s buying a can opener, next sessions may be altered a
too. But there were a few ques- little.
tions and it’s really not going to be Highet explains that FBDB has
so simple. Unbuttered bread is reached an agreement with the
non-taxable, for example, but if Toronio accounting firm of Ernst

you butter it you tax it, and Younge to provide th exper-
But the best question came close tise for the fall session of GST

to the end of this session. Someone seminars, This tour has already

asked, "Is the GST faw?" No, it been scheduled but there may be a
isn't, said Dixon, but it probably custom designed follow-up to sort

will be. That’s apparently why the gi any confusion left in its trail.
government is spending so much . _—

It seems that one of the biggest
trends in Canada today is hosting a
GST seminar or workshop. The
Federal Business Development
Bank held one last spring, and so
did Northwest Community College.
And Revenue Canada was in town
last week with a version of their
Own.

But everyone still scems to be
confused. They really don’t know
what GST means to them and the
future of their business. One of

these hosts, FBDB, has noticed
this disturbing fact and Terrace

Williams says he would like to
begin organizing a GST program
on & more local basis using local
accounting expertise. This team of
experts would offer one-on-one
counselling and help translate the
GST formula as it relates to each
Specific business circumstance.
How to adjust current bookkeeping
systems, for example, and how to
keep books in order once the GST
becomes law. The goal is to help
the individual overcome fear of the
unknown, and in the end to derive
the greatest benefit from things
like Input Tax Credits,

As attractive as this idea is, it’s
not set in stone just yet. But it
could be very soon. Williams will
have his. own training program
coordinator on staff in less than a
week so there will be someone to
put the idea into place. And there's
support for the idea. Highet notes:
"Paul has a good idea here. You
can go fo a seminar and listen,
that’s one thing, but the thing you
really need to know, *How does it
affect me?’."

And as Highet himself has noted
from FBDS GST seminars of the
past, this is not happening. People
leave the seminars with more
excess baggage than applicable
knowledge. Or, in Highet’s words,
"People went out more confused
than when they came in." So
Highet concurs. "I think Paul is
onto something here,"

is

monéy to set up offices and edu-
cate us. {~

But what if it doesn’t become
law? Dixon has an answer for that
question too. The worst thing that
can happen is that we will be
overloaded with useless informa-
tion.

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the birth of YOUR baby, please fill out the form
available in the maternity ward at Mills Memorial
Alospital. We will pick up your forms every week,

RICHARDSON — Dave and Jeanne are proud to
announce the birth of son Spencer John on July 18,
1990 at 8:45 a.m. weighing 7 Ibs. 9 oz. A little
brother for Sara and Rebecca.

RUSSELL/SCOTT — Laverne Scott and Marvin
Russell are pleased to announce the birth of their
daughter Samantha Joanne Ashley Scott, born on
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12» 4741 LAKELSE, TERRACE

After Store Hours 638-1054 / Telex 04786649
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