[ont.general] whether to show the retail sales tax

dave@lsuc.UUCP (03/09/87)

In article <2415@watdragon.UUCP> absary@watdragon.UUCP (Al Sary) writes:
>That's partly what I was getting at in my previous article when I said
>that including the sales tax in the price is the wrong business decision.

It's not a business decision at all in any jurisdiction I know of.
Whether the sales tax is to be shown separately (as with Ontario
sales tax and federal sales tax on printing) or is to be built into
the price the customer sees (as with federal sales tax on most
consumer items) is determined by law, not by the individual business.

David Sherman
The Law Society of Upper Canada
-- 
{ seismo!mnetor  cbosgd!utgpu  watmath  decvax!utcsri  ihnp4!utzoo } !lsuc!dave

absary@watdragon.UUCP (03/10/87)

>It's not a business decision at all in any jurisdiction I know of.
>Whether the sales tax is to be shown separately (as with Ontario
>sales tax and federal sales tax on printing) or is to be built into
>the price the customer sees (as with federal sales tax on most
>consumer items) is determined by law, not by the individual business.

There must be a decision involved in making the law one way or
the other.

ksbooth@watcgl.UUCP (03/10/87)

Surely this discussion has entered the realm of the ridiculous.  No one is
questioning what the law is.  The original posting merely pointed out that
nice round numbers are more conveninent.  Anyone with a 3rd grade education
would be capable of setting prices (using a table similar to the current
tax tables) that would end up being "nice" after tax is applied.  This is
in fact done in some businesses (including the LCBO, whose prices include
all taxes).  It is true that due to roundoff there might be some "nice"
values that could not be achieved, but most prices could certainly avoid
pennies if that were socially desirable.

hugh@hcrvx1.UUCP (Hugh Redelmeier) (03/10/87)

In article <1623@lsuc.UUCP> dave@lsuc.UUCP (David Sherman) writes:
>
>Whether the sales tax is to be shown separately (as with Ontario
>sales tax and federal sales tax on printing) or is to be built into
>the price the customer sees (as with federal sales tax on most
>consumer items) is determined by law, not by the individual business.

Actually, it was determined by our constitution!  The British North
America Act said provinces could not levy "indirect" taxes (i.e., a
tax charged to someone other than the person who would ultimately
pay it).  The sales tax would have been indirect except that it is
paid by the customer, to the government (through the government's
agent, the vendor).

I think that this restriction on provincial power is not in our new
Constitution (traded away during negotiations?).

I think there is real merit in this way of charging tax: the
consumer sees the money going to the government.  It is very easy to
fail to notice hidden tax (e.g. Federal Sales Tax, corporate income
tax, duty, etc.).  I wish all taxes were as visible.

Hugh Redelmeier (416) 922-1937
utzoo!hcr!hugh