How to reduce your taxes? Consider hiring your family members!

The GST & HST rate has gone down by 1%, effective January 1, 2008, fees for professional services rendered before January 1, 2008 will be taxed at 5% if the billing is issued after December 31, 2007.

However, some goods and services will still be taxed at 6% even when the goods are delivered or the services consumed after December 31, 2007. For example, the 6% rate will apply to:

1. Airline tickets purchased before January 1, 2008 for travel after December 31, 2007

2. Prepayments before January 1, 2008 for goods to be delivered after December 31, 2007

3. Lease payments that become due or cable television bills that are issued before January 1, 2008 for a period that straddles the January 1, 2008 implementation date.

For more information visit the CRA's Website.