A Thought About GST and Imports
Since the implementation of harmonized sales tax ("HST") in Ontario and British Columbia, the Government of Canada should re-think the imposition of goods and services tax ("GST") on imports of commercial goods. In connection with the implementation of HST, the CITCAs include provisions such that HST is not imposed on imported commercial goods. What is the logic of continuing to impose GST on commercial imports? Wouldn't it be better for Canadian businesses and, in particular manufacturers, if the GST cash flow cost on imported commercial goods is removed? If the Canada Border Services Agency can live with the HST regime for imports, why can't they also live with no GST on commercial goods and GST on non-commercial goods? Wouldn't it be a more efficient use of government resources if the Canada Border Services Agency is no longer responsible for collection of GST on imported commercial goods and is not longer shares verification/audit functions with the Canada Revenue Agency? For that matter, wouldn't it be better for businesses if they did not have to be subject to GST audits/compliance verifications by two separate government agencies who do not adequately share information and interpretations? I am just saying ...
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
hi Cyndee
Why would CBSA want to give away the $$$ gained on GST collection ?
total Imports = $33,186,809,300 Thats like $33Billion for July2010. Take a 5% of that and hold for 30 days and imagine how much of $$$ earned on interest that is gained ??
Why would CBSA give that away.. its a cash cow.. which they will always milk.. (I would too ..:)
..just saying its all about the $$$ and Fund Mngt at the GST level..
Once GST line item is finalized post end of month.. CBSA has approx 15 days to transfer that amount over to CRA , till then CBSA enjoys whats in their coffers !!