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New 'HST' for PUTM = Hefty Sales Tax?
Message
From
07/03/2005 23:50:57
 
 
To
06/03/2005 15:29:01
General information
Forum:
Level Extreme
Category:
Other
Miscellaneous
Thread ID:
00992783
Message ID:
00993524
Views:
14
>>Canadian GST/HST overview at http://www.cra-arc.gc.ca/tax/business/topics/gsthst/menu-e.html
>>
>>I went through this issue with Michel last November. Some relevant information I dug up at the time:
>>
>>http://www.fin.gc.ca/hst/hst4a-e.html#BASIC4 . Specifically, memberships are discussed surrounding Example 4-21 near the bottom.
>>
>>I went as far as phoning the CCRA (Canada Customs and Revenue Agency) GST/HST Ruling number at 1.800.959.8287 and outlining the situation to them. They agreed that on the face of it I should not be charged full HST (only federal GST since I'm Canadian) but they were careful to say that the final authority is an official, written ruling from CCRA for the business in question, if that exists.
>>
>>Apparently Michel has such a written ruling, that his business somehow does not constitute "memberships" as per 4-21 cited above. Or, that the product is somehow "consumed" in New Brunswick rather than the subscriber's location. This has far-reaching tax implications - not only must he charge full HST Canada-wide, but world-wide as well. It puts him at an 8% disadvantage for other jurisdictions in Canada (all Canadians still have to pay at least 7% GST) and 15% for the US (discounting the difference in currency). Getting it changed would take either a massive and costly legal challenge, or a change to legislation (which is what I think Michel was alluding to).
>>
>>I don't know how you can get a refund. The closest info on international residents I found was http://www.cra-arc.gc.ca/tax/nonresidents/menu-e.html
>>
>>A faint possibility might be http://www.cra-arc.gc.ca/tax/nonresidents/visitors/vrpqa-e.html
>
>This also provides more valuable information about the issue. I think at this point complains from our members is one good approach, among the other ones we are working on. So, either by calling the number and making a complain to Marlene Poirier or by emailing me directly so I can sum it all and build a document.

If you're serious about this I recommend putting up a notice on the UT Main Page with CRA contact information and/or other contact information for written letters or e-mail complaints to you that you can then forward to CRA. The visibility of the issue buried here in the Chatter forum is almost zero.
Regards. Al

"Violence is the last refuge of the incompetent." -- Isaac Asimov
"Never let your sense of morals prevent you from doing what is right." -- Isaac Asimov

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