Friday, October 16, 2009

Beat the HST - pay for your funeral now! BC government outlines "transitional" HST rules - death may be only escape

If you want to beat the impending BC Harmonized Sales Tax - pay for your funeral now - because it's one of the only things you won't be taxed an extra 7% on if the HST goes ahead on July 1, 2010.

That information was part of a 22-page BC government outline of "transitional" HST rules - and if you think that sounds ominous, you're right.

Because while the HST won't retroactively apply to your pre-paid funeral services if you buy then before July 1 or to your existing pre-paid magazine subscriptions - it will apply to a range of other purchases.

So if you were thinking the HST could be dodged by making a trip to the Brick before July 1 for a don't pay a cent event and buying that new sofa and love seat - you better love it a lot because you'll be paying an extra 7% anyway.

Here's the BC government's own example:

"Example 1: In May 2010, a person enters into an agreement to purchase furniture. Under the agreement, the person takes delivery of the furniture in July 2010, makes 12 monthly payments between July 2010 and June 2011, and receives ownership of the furniture when all the payments have been made. The HST would apply to the sale of the furniture."

That's a pre-HST purchase where you don't pay in advance. But what about if you pay the full price in advance of July 1 but don't actually take possession until after July 1? Surely that can't be subject to the HST?

Oh yes it is!

Here's another BC government example:

"Example 2: In June 2010, a person pays for a sailboat, but the sailboat will not be delivered, and ownership will not be transferred, to the person until August 2010. The HST would apply to the sale and the supplier would account for the B.C. component of the HST in the GST/HST reporting period of the supplier that includes July 1, 2010."

How about your gym membership? If you pre-pay before July 1 what happens?

Oh yeah, feel that burn - you pay the HST.

"Example 14: In June 2010, a person purchases a four-month membership in a fitness club for the months of June through September 2010. The HST would be payable in respect of three of the four months of the membership (i.e., on 75 per cent of the total consideration)."

Canucks fans can also start putting aside extra money for tickets to games after July 1, 2010 no matter when they buy them, says the BC government:

"Example 16: In May 2010, a vendor sells tickets to a professional hockey game that will take place in October 2010. The HST would apply to the sale."

Perhaps most frightening for those contemplating buying a new house or apartment, the government says it hasn't quite figured the rules out:

"Information about the transitional rules for new residential housing in B.C. will be provided in the coming months."

As I wrote in my column in 24 hours and The Tyee this week, the high cost of the HST keep mounting as we learn more about what will be taxed an extra 7%.

Be afraid, be very afraid! And don't believe the hype about the HST benefitting the economy - this will be an expensive disaster for consumers as $1.9 billion in costs is transferred to them from big business - the only ones who will profit from this mess!

If you don't like what you're reading here about how the HST will affect you and your family - do something about it!

Join Fight HST - the grassroots group started by former Premier Bill Vander Zalm that I am supporting, along with people from every political persuasion or none at all.

And join my Facebook protest group - NO BC HST - which has over 127,000 members - that's more than the Vancouver Canucks Facebook page!



Anonymous said...

No matter what . . . Gordon wants "his" Games to happen and he will destroy society to pay for them.

I expect our beloved provincial and municipal "leaders" will soon be digging up graves across BC to confiscate for the 2010 Games budget any gold or silver fillings.

What is shameful is how a former NDPer has become a "Campbell Quisling", quite ready to have state-security kick in the door of anyone's house, condo, apartment or cardboard-box to get at their offending T-Shirt or laptop which may or may not have any anti-2010 propaganda on it.

Google . . . "Vidkum Quisling" it makes for interesting reading.


Grant G said...

Bill T

Have you looked into example #18 on the government web site on transitional rules?

I referenced it yesterday in my comment.

"If a corporation sells to a buyer a small shopping mall in January 2010 but the buyer doesn`t take possesion of the mall until august 2010 the HST will apply"

The point I am trying to make is this, not how goofy the transitional rules are, but the way I read that example is this...

The HST may only apply to NEW RESIDENTIAL HOUSUNG but it appears that the HST applies to sales of businesses and commercial real estate whether it`s new or used.

I wonder if the big boys are aware of that,because someone who buys or sells commercial real estate probably won`t have any input credits to claim.

3 million$ 4 million$ 5 million$ 10 million$ is nothing when your dealing with commercial real estate, lets deal with the middle number 4 million....the HST on that transaction is....Drum roll please..
280.000.00$....That`s a lotta beans.

I have not heard anything from government or anti-HST people about the HST applying to commercial real-estate...

Bill T...Real estate wheeler dealers are Gordon Campbell`s freinds,the more people we can get on board fighting this the better.

Please clarify that Bill T


Grant G said...

@The Great Satan....Your comments are always first class but..

Gregor Robertson was never a NDPer,well he was to get elected but Gregor is out for Gregor, Gregor stopped defending cambie merchants and the soon to be displaced olympic merchants.
As a regular watcher of the BC Legislature for years I can tell you that Gregor LOVES the carbon tax,loves tax cuts for big profitable business,he was a poor sloppy speaker in the house,the only thing........

The only thing Gregor Robertson is good at is smiling and making females swoon.

"Put a fox in the hen house and you will have chicken for dinner every night"

And speaking of chickens, they bring bugs,avian flu,racoons,rats and a myriad of other problems.

Other than that,Vancouver for years has only elected whack jobs for mayor.
Gordon Campbell...Larry Campbell..Sam Sullivan now Gregor Robertson.


Henri Paul said...

The GREAT SATAN said 9:46 Google . . . "Vidkum Quisling" it makes for interesting reading

Quisling, very interesting, yes, today I learned something, thank you.

Anonymous said...

Seems if you're a Liberal these days you need to walk around wearing dark glasses, a hat and keep your head down. Don't want anybody to recognize you.

Anonymous said...

And I thought a Quisling was a national traitor, not a "political" traitor.

Do I smell sulphur?

Kam Lee said...

I have sent out 16 e-mails to lieberal sitting members. Guess what... no responses! Aside from computer generated "I am out of the office, and thisd e-mail is important to me...." Bullcrap! They are all cowards, liers, an in-breaders! They should all lawyer up like Cristy Clark. They will all need it.

Anonymous said...

I thought that you already pay the HST and GST on furniture regardless?

As I am not impressed with this tax, I would rather you focus on items where the tax would not be paid in the first place such as newspaper subscriptions, phone bills, hydro bills, tv bills, etc...