Not all provinces have sales taxes operated by their provincial governments.  The main sales tax systems are operated by Ontario, British Columbia, Saskatchewan, Manitoba and Prince Edward Island.  Alberta has a very restricted sales tax system. Other provinces have value added taxes but also have some interesting old sales taxes still on the books.  For example, the sales tax charged by Quebec on insurance premiums is not refundable and on audit you must pay it back with interest.

Let’s consider Ontario.  If you can fully answer the following question, you may not need a review of sales tax.  Be truthful to yourself in answering the following question and that question is: 

When you purchase a man’s suit in Ontario, what did you buy?

This is an important question.  Anything purchased for resale in Ontario is exempt of sales tax.  So, what did you buy?  OK, we agree that you bought a jacket and pants.  But do you realize that you also bought the plastic bag, spare buttons, hangar and the price tag?  All of these items become yours when you buy a man’s suit, which means that the store does not have to pay sales tax on the purchase of those items. 

Now you may figure that you could have looked up the answer to this question in the legislation.  True, if you have the time and know where to look, but let’s change one aspect of the question:  suppose it was a woman’s suit that was purchased, would this change your answer?  An administrative policy of the tax authorities is that hangers purchased for woman’s clothing are taxable to the store because the hanger for women’s clothing stays with the store.  Administrative policies are not included in the legislation documentation.

Perhaps you may wish to have a tax professional on your side.  If you already have a sales tax advisor, isn’t it interesting that your advisor did not share that information with you? 

Business transactions are usually much more complicated than buying a suit of clothes, which is why business leaders look to RDP for help.  We can track down all of the recoveries present in your old invoices that not only will generate cash refunds but also ensure that you enjoy a future stream of tax savings! We will always tell you precisely how we recovered sales tax from the past while providing you with the opportunity to profit in the future.

Why not take a look at our FAQ Section?  Better yet, please Contact Us and we'll be happy to arrange an appointment at your convenience.