Changes to GST collection mechanism to benefit thousands in Canada's $1.9 billion direct selling industry

    TORONTO, Jan. 27 /CNW/ - The Direct Sellers Association of Canada
applauded the federal government for amendments to a GST collection mechanism
used by thousands of small businesses across Canada.
    "The amendments to the Direct Sellers Mechanism in the federal budget
confirm that this government is delivering on its commitment to decrease
red-tape for businesses in Canada," said Ross Creber, President of the Direct
Sellers Association of Canada. "This change will benefit thousands of
independent sales contractors in the direct selling industry."
    The Direct Sellers Mechanism (DSM) allows for the pre-collection of
GST/HST by direct selling companies thus removing the burden of GST
registration for the independent sales contractors (ISCs) of direct selling
companies. The result is administrative savings to both the ISCs in terms of
the costs of operating their own small business and to the CRA in
administering the GST.
    "Without the changes announced today, the DSM was unavailable to the 20 -
25 % of the direct selling industry which operates on a sales agent, as
opposed to buy-resale, basis," Mr. Creber said.
    The DSA also applauded the government on its commitment to provide
additional funding for the Human Resources Ministry to assist those on social
assistance in upgrading their skills, enabling them to return to the
    "During these challenging economic times, the direct selling industry is
uniquely positioned to provide both full and part-time income opportunities
for Canadians," Mr. Creber said.
    During the past year, close to 1.3 million individual Canadian women and
men were engaged as ISCs, operating their own direct selling businesses with
more than $1.96 billion of sales. Of these Canadians, 88% are women, 81% are
married, and 56% have full-time jobs - using this business opportunity to earn
extra income. Additionally 15% worked part-time and have no other occupation,
while 11% were unemployed prior to entering the industry.

    The Direct Sellers Association of Canada (DSA) is a national trade
association representing close to 50 direct selling companies, including Avon,
Mary Kay, Tupperware, Nu Skin, Amway PartyLite Gifts, Cutco/Vector, Regal,
Nature's Sunshine, Arbonne, Usana and Unicity.

For further information:

For further information: Ross Creber, President, Direct Sellers
Association of Canada, (416)-679-8555;

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