Marc Haine walks through why businesses fail when they spend GST and HST money they've collected instead of setting it aside. Many entrepreneurs treat tax funds like ordinary cash, then panic when the bill comes due and they don't have it.
As you were saying all that, I was going to all the nightmares I've seen my clients going through when it came down to stuff including, hey, I have this money in the bank so I can pay my stuff. It's like, but what about you set aside your GST and your HST is all set aside? It's like, but now you don't have the money to pay your tax bill when it comes out, right? Yes. And people struggle. They think it's a cash cow. Oh, I'll put it back later.
