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.
Indirect taxes include GST/HST, QST, provincial sales tax, and payroll taxes (e.g., CPP, EI, Ontario EHT, and WSIB), as well as US sales and transaction taxes, and 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.
When developing an effective overall tax strategy, you should consider the broad impact of indirect taxes on your organization.
Businesses in Canada often pay more in sales and other indirect taxes than they pay in income tax. Because of the potentially significant costs involved, 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.
Using extensive industry experience and strong technical knowledge, and by continuously monitoring legislative, judicial, and administrative policy changes, Indirect Tax professionals can help you manage your indirect tax responsibilities and the cost of such taxes to your business.
KPMG International's global network brings together 1,400 Indirect Tax professionals in 94 countries who deliver coordinated services to businesses involved in international transactions. These professionals combine an international perspective with local experience and insight.