To attract shoppers, retailers occasionally advertise something like "Pay no GST or PST!" Needless to say, neither the federal nor the provincial government is willing to forego its sales tax. In this situation, the retailer must calculate and remit the GST and PST as though the "ticket" price already includes these sales taxes. How much GST and PST must a Manitoba retailer report on a $495 item that he sells on a Pay-No-GST-or- PST basis? (Hint: What percentage is the GST of a GST- and PST-inclusive price?)

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The Answer of To attract shoppers, retailers occasionally advertise something like "Pay no GST or PST!" Needless to say, neither the federal nor the provincial government is willing to forego its sales tax. In this situation, the retailer must calculate and remit the GST and PST as though the "ticket" price already includes these sales taxes. How much GST and PST must a Manitoba retailer report on a $495 item that he sells on a Pay-No-GST-or- PST basis? (Hint: What percentage is the GST of a GST- and PST-inclusive price?)

To Attract Shoppers, Retailers Occasionally Advertise Something Like "Pay No