Effect on Businesses of Elimination of the Penny
The Ministry of Finance has stated that businesses are not required by
the government to reprogram their cash registers, but they may choose to update their cash registers to automatically calculate rounding for
cash transactions and to provide greater transparency and clarity to their customers by showing the rounding on receipts.
Although we're not familiar with how point-of-sale (POS) cash register equipment works in detail, it seems logical that if the amount paid differs from the amount of the total sale, there
could be problems. The Canadian Restaurant and Foodservices
Association (CRFA) made a submission
to the Ministry of Finance on this topic in June 2012. They were recommending that all transactions, not just cash
transactions, be rounded to the nearest five-cent increment. This
because it would be more complicated to reprogram POS equipment for only
cash transactions. No changes were made in this regard.
GST/HST remittances and input tax credits are not affected by
rounding of cash transactions. The net amount gained or lost due to
rounding of cash transactions increases or reduces the net income of
the business. Theoretically, the net effect should be zero.