McGuinty Government Using Its Own Silly ORST Rules to Justify HST
On June 4, 2010, the Ontario Ministry of Revenue published a notice for taxpayers telling of the silly Ontario retail sales tax results that Minister Duncan/Premier McGuinty would not fix in the past. The June 4th document is being used by the Ontario government as a justification for the harmonized sales tax. I find that very funny. As a sales tax lawyer, I know about the absurd positions taken by auditors. I sometimes want to shout at auditors to use their discretion reasonably. I sometimes want to say more. Anyway, here is the list of absurd results under the Ontario retail sales tax regime that were not fixed in the past that are the given as the Ontario government's justification for HST (start laughing now):
- A restaurant could claim an exemption on after dinner mints served at the table, but not left by the cash register.
- A business that supplies security systems could claim an exemption on surveillance cameras, but not on the brackets that hold the cameras.
- A business could claim an exemption on a forklift used in the production line but not in the warehouse.
- A business could claim an exemption on a computer used in manufacturing, but not for payroll.
- Universities could claim an exemption on equipment used for research, but not in the classroom.
- Hospitals could claim an exemption on toilet paper used in a patient's washroom, but not a public washroom.
The list is actually longer and I have seen very strange decisions by auditors. Do you have examples to share?
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
