Made a large purchase today and realized when I got home the tax charged was 15% what do I do now? Should I report this to someone?
2006-10-21 12:15:40 · 5 answers · asked by Viakin 2 in Business & Finance ➔ Taxes ➔ Canada
GST was lowered to 6%. (Used to be 7%)
PST is still 8% (at least here in Ontario).
2006-10-21 12:25:09 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Your 15% tax was comprised of 7% GST (federal tax) and 8% PST (retail sales tax) probably. The GST was reduced to 6% effective July 1, 2006.
Here is what you should do.
1) if you are a GST registrant and it was a business purchase, don't worry, claim the full amount you paid as a tax credit and get it all back BUT if you're not a GST registrant....
2) since it was a "large purchase", 1% could be a significant amount to you, so you should simply contact the 'store' to obtain a refund. This would be the easiest way. The store could be doing this intentional to take extra from consumers, or accidentally through a "cash register problem" or simple lack of knowledge of the change.
3) trust me, complaining to revenue canada about this won't get your money refunded. they will simply inform you that as long as the retailer submits what was charged, you are out of luck.
so try to get it back from the store first. if they are unwilling, at least you can inform revenue canada of what is going on and maybe they will get caught not remitting the money. if you want to do this contact your local tax services office and speak to someone in investigations or non-filers departments.
TIP *** try to get it back from the store first. if a mistake, then they will probably have no problem refunding. if they are doing this on purpose, they still may give you the refund in hope you won't turn them in. But if you go straight to revenue canada, you will be out-of-pocket.
GOOD LUCK and maybe we should all check our receipts a little more closely
2006-10-23 14:04:42 · answer #2 · answered by Tiberius 4 · 1⤊ 0⤋
It should have been 14%. The GST was reduced to 6% on July 1, so combined with the provincial tax it should be 14%.
You should report it to CRA because chances are that the retailer is pocketing the extra 1% they charged you.
2006-10-22 22:18:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It looks to me like the GST was recently changed from 7% to 6%. Most provinces have an additional provincial tax that may or may not tax the GST. Maybe your province increased their tax. Your provincial tax authority is probably the best place to report any over taxing anyway, so you should probably contact them.
2006-10-21 19:33:41 · answer #4 · answered by STEVEN F 7 · 2⤊ 0⤋
What tax are you talking about ? The gst was lowered to 6%.
2006-10-21 19:20:05 · answer #5 · answered by Sandra S 2 · 0⤊ 1⤋