The biggest crime in small businesses today goes unnoticed by most outsiders. It is not reported in the media. There are no police reports filed and firms do not even mention it on their websites. Suppliers talk about it on the street and employees often overlook it. Even though this crime is rampant among small businesses, it’s presence is so subtle countless business owners fail to identify when it is having! Unfortunately, this crime is the same one that’s most likely to kill a small business. It is far from stealing by employees, burglaries, trivial lawsuits, or industrial espionage.

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In Canada, exports are “zero-rated” sales for S.S.T. purposes. This means that in case you ship a product to someone outside Canada, you don’t charge T.S.T. Yet, you get declare (or deduct from the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that move. The idea, I suppose, is to encourage forwarding.

Pretend your Canadian customer has got a new book of from your Canadian website. Your drop ship supplier is operating out of the America and is registered for G.S.T. You fax your order to the American company, and they, in turn, ship advertise for you (complete with Customs Declaration and their G.S.T.

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