Funerals and HST Transition Rules
Sadly, I was at a cemetery on April 27th to bring my beloved Grandmother to her final resting place. She purchased the plot over 35 years ago before her husband, my Grandfather, passed away. As we drove through the front gates, I saw the big sign saying to buy now to save the harmonized sales tax (HST). This was creepier than the cemetery itself.
If an individual pays prepays for a cemetery plot at an Ontario cemetery and/or a funeral before July 1, 2010, then HST will not be payable. Wait until after July 1, 2010, then HST may be payable. I say "may", because who knows what will be the tax rates and tax base at the moment in time when our time comes. You may not be saving any tax.
My advice is that if you have found the perfect spot for your final resting place and do not want to lose the location, then there may be some benefit to the taking advantage of the limited benefits of the transition rule. For others, I wish you good health and a long life --- let's not speak of funerals further.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
