The best solution, IMHO, coin denominations aside is have retailers meld the tax into all products prices so what you see on the tag is exactly what you pay - no surprises at the register. They already do it with gas (52.5 cents/litre contains GST). I believe they do this in England with their VAT.

>Do you know that Quebec round their tax to the upper cent? Like $1.011 will be rounded to $1.02? With a governement that give the example...
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>>Sure... especially if their cash register used a rounding function to the nearest quarter (which it probably would for convenience). You forget that we only had coins that were a portion of a cent.