Vancouver Off-Topic / Current Events The off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum. | | |
06-01-2012, 01:55 AM
|
#1 | Need to Seek Professional Help
Join Date: Mar 2005 Location: vancouver
Posts: 1,095
Thanked 2,237 Times in 251 Posts
| Dodging Tax on Vehicle Transactions Might Change?? Quote:
British Columbians "give" thousands of cars to "friends" in tax dodge
You like the looks of this fancy Porsche 911 I am driving, which has a book value of $80,400?
You find the 400-watt stereo, the all-leather interior and the 18-way power seat adjustments appealing?
You’re quite correct. As the young people say, it is one dope ride.
And if I can make a friend happy, then I must do so.
I give it to you. It’s yours. Drive it away.
The above scenario plays out every day in front of the officials who handle the process of transferring vehicle ownership.
Judging by the paper trail, British Columbians are among the most generous, altruistic people on earth. A remarkable number are seized with the urge to give their cars away to “friends.”
It would give most people a nice warm feeling, to know they live in a province where magnanimous gestures like this occur every day.
But not the tax collectors. Those cold-hearted skeptics reject the notion that B.C. is a place where people donate their cars out of the goodness of their hearts.
It must be awful to be a tax collector. Always looking the gift Mustang in the mouth.
But of course, sad to say, they’re dead right.
It’s a scam that costs taxpayers an estimated $17 million last year. Since the bogus gifting requires the connivance of both parties, enforcement is difficult.
But the wide-open loophole will soon be eliminated when the new-old provincial sales tax returns.
The loophole is simply that if you designate the private transfer of a vehicle as a “gift,” you avoid paying taxes. The use of that dodge has become rampant.
Finance Minister Kevin Falcon said the new version of the PST currently before the legislature will allow for a regulation that will close the loophole.
“This is to deal with a very substantial problem associated with people that, to avoid paying tax, were claiming that an item was provided as a gift rather than purchased.”
He said last year there were “hundreds of high-end late model vehicles, including BMWs, Porsches and Mercedes, that were reported as so-called gifts from so-called friends.”
Almost one-third (161,000) of the 503,000 private vehicle transactions last year were reported as gifts instead of sales. And an estimated 60,000 of those were between unrelated individuals. The recipient is listed on the form as “friend.” Sometimes: “Best friend.”
Falcon said sardonically: “Happily, though it hasn’t happened to me yet, there are individuals that are gifting high-end Porsches, Mercedes and BMWs to people that they are unrelated to, out of the goodness of their heart.”
Government tax bulletins have been plaintively warning about this fraud for a while. But the urgency has been stepped up. A background note from the finance ministry says curtly: “This type of tax avoidance is nothing more than theft from British Columbians and it ends now.”
It’s striking how many of them are late-model high-end “gifts.”
The ministry said there are more than 300 instances last year where BMWs were gifted to friends. One of them was worth $70,000.
More than 200 late-model Mercedes were given away, including one worth $60,000. One of them didn’t even go to a friend. The recipient was listed as an “acquaintance.”
Thirty Porsches were gifted, including the $80,400 one described above.
But it will all soon come to an end. There will be provision for real gifts, where cars are donated to charity or given to family members, as long as the donor has paid the original sales tax.
There’ll be more rules to follow when you give a car to a friend. Under one proposal, the friend will be required to pay tax when the gift car is registered.
The exact tax being avoided is the 12 per cent Tax on Designated Property, created in 2010 during the HST changeover. It was invented to even the field between private vehicles sellers and dealerships.
People were dodging the seven per cent PST previously. When the 12 per cent Tax on Designated Property came in, the scam accelerated.
“Give until it hurts,” they say. The explosion of selfless generosity is expected to end soon. Then the hurt resumes.
| Source: British Columbians "give" thousands of cars to "friends" in tax dodge |
| |
06-01-2012, 02:01 AM
|
#2 | Revscene.net has a homepage?!
Join Date: Feb 2012 Location: Richmond
Posts: 1,287
Thanked 2,093 Times in 452 Posts
|
The entire article is satire and sarcastic, I like it.
|
| |
06-01-2012, 02:02 AM
|
#3 | Even when im right, revscene.net is still right!
Join Date: Sep 2007 Location: richmond
Posts: 1,381
Thanked 1,958 Times in 287 Posts
|
Never done that before |
| |
06-01-2012, 07:08 AM
|
#4 | My homepage has been set to RS
Join Date: May 2006 Location: PoCo
Posts: 2,062
Thanked 551 Times in 141 Posts
|
Almost as much of a scam as paying tax on a car every time its sold. Its not like the people selling privately are making money off it.
|
| | This post thanked by: | Aetios, Alatar, Anjew, Berzerker, cdizzle_996, Ch28, CharlieH, CPE, dvst8, eurochevy, Everymans, FARMER, finbar, FN-2199, fT-z33wor, Gerbs, gwh0803, Happy, hongy, iam_dan, InvisibleSoul, J-Chow, jaemc, JHatta, jmanhas, Kidnapman, kwy, lgman, melloman, Meowjin, metal, Noir, optiblue, Psykopathik, RevYouUp, reza, RiceIntegraRS, RS_Pat, slicrick, Slifer, some_punk, SpartanAir, spoon.ek9, StylinRed, tamazoid, Teh Doucher, TekDragon, tiger_handheld, tofu1413, TurboFC3S, TypeRNammer, urrh, wstce92, Yodamaster |
06-01-2012, 07:15 AM
|
#5 | Where's my RS Christmas Lobster?!
Join Date: Jun 2009 Location: Burnaby
Posts: 858
Thanked 1,070 Times in 229 Posts
|
i'll be honest i've done it before but only on the shitboxes i used to drive.. they were only like $500-1000 though. i never thought people would have dared to do it with higher end cars too, i mean i would have thought you would DEFINITELY get caught since it's pretty obvious nobody would gift a 70k car to a friend. $500-1000, much more likely.
|
| |
06-01-2012, 07:35 AM
|
#6 | RS.net, helping ugly ppl have sex since 2001
Join Date: Apr 2001 Location: Rmd, BC
Posts: 9,951
Thanked 378 Times in 66 Posts
|
So two wrongs make a right?
Taxes on a USED VEHICLE SALE is as much of a "theft" to British Columbians.
__________________ All hail 2.3 turbo RIP: long live 1.6
-Former S.O.M.O. Vive la resistance!
-MFC Fan # 3
-RS ELITE NINJA smurf-ninja
-L.B.C.: REVscene's Resident Lowballers
-RS Photography Crew WpnOfChoice: Sony DSC-F717~"Dana" http://www.flickr.com/duckducksnap |
| | This post thanked by: | 2damaxmr2, Alatar, cdizzle_996, Ch28, CPE, eurochevy, FN-2199, fT-z33wor, Gazorcoop, Gerbs, hk20000, iam_dan, IMASA, InvisibleSoul, J-Chow, JHatta, jmanhas, Jsunu, k00laid, MelonBoy, monkeywrench, nack, Noir, Psykopathik, Raid3n, reza, spoon.ek9, spyker, StylinRed, tamazoid, TekDragon, tiger_handheld, tofu1413, TouringTeg, TurboFC3S, twitchyzero, urrh, westopher, wstce92, Yodamaster |
06-01-2012, 07:36 AM
|
#7 | Revscene.net has a homepage?!
Join Date: May 2008 Location: vancouver
Posts: 1,243
Thanked 1,619 Times in 378 Posts
|
lets say I gift you a 1000 dollar car, then next year you gift it back to me, then we keep handing it over back and forth, everytime we hand it over it generates money for the government,
how is that not fuckin retarded? Its my choice to give something to someone.
|
| |
06-01-2012, 07:38 AM
|
#8 | Banned By Establishment
Join Date: Jan 2003 Location: Coquitlam, BC
Posts: 9,521
Thanked 1,289 Times in 409 Posts
|
Paying tax on used vehicles is bullshit anyways. If you sell anything small privately no tax is charged. You are a private person, not a business entity.
|
| | This post thanked by: | 2damaxmr2, Aetios, Alatar, BeeBeeAhn, Ch28, DHP 1, eurochevy, FARMER, Gerbs, Gesus, guurl, hk20000, hotjoint, i-VTEC, iam_dan, J-Chow, jaemc, JHatta, lgman, Nightwalker, Noir, Presto, reza, StylinRed, Super Dipper, tamazoid, tiger_handheld, unit, urrh, Yodamaster |
06-01-2012, 07:40 AM
|
#9 | I don't get it
Join Date: Jan 2007 Location: vac
Posts: 449
Thanked 263 Times in 96 Posts
|
It is indeed a scam by the government to keep taxing vehicles that have already had the tax paid on initial sale. I wouldn't go to the extreme to gift a vehicle to someone, but am I the only one who thinks we pay enough taxes here in BC?
Look at the gastax. We're paying roughly 50 cents on the litre for various taxes.
|
| | This post thanked by: | 2damaxmr2, Alatar, Ch28, eurochevy, FARMER, J-Chow, JHatta, nah, Nightwalker, Noir, StylinRed, tamazoid |
06-01-2012, 09:18 AM
|
#10 | I *Fwap* *Fwap* *Fwap* to RS
Join Date: May 2005 Location: Vancouver
Posts: 1,552
Thanked 47 Times in 12 Posts
|
Just curious, let's say if I loose a bet to my friend or lost a car to someone while gambling like playing poker or something and no physical exchange of money was involved (no paper trail such as bank draft or transfer). Does that still count as 'selling'? Would the person still need to pay taxes on the vehicle?
__________________ Quote:
Originally Posted by Hyde rich ppl dont need respect from poor ppl | |
| |
06-01-2012, 09:48 AM
|
#11 | I only answer to my username, my real name is Irrelevant!
Join Date: Oct 2002 Location: CELICAland
Posts: 25,642
Thanked 10,372 Times in 3,904 Posts
| Quote:
a scam that costs taxpayers an estimated $17 million last year
| Quote:
“This type of tax avoidance is nothing more than theft from British Columbians and it ends now.”
| did they confuse regular bc citizens with those working in the govt? Quote:
as long as the donor has paid the original sales tax.
| ^^^given that than there should be no tax on sales of used goods... since the seller paid the original sales tax...
I've only ever transferred 1 vehicle to someone but he's a relative and i really did give it to him but i don't see why it should be any different if the person receiving the vehicle is family or not
|
| |
06-01-2012, 10:04 AM
|
#12 | nuggets mod
Join Date: Feb 2002 Location: richmond
Posts: 7,044
Thanked 3,782 Times in 977 Posts
|
This is my favourite quote: Quote:
The exact tax being avoided is the 12 per cent Tax on Designated Property, created in 2010 during the HST changeover. It was invented to even the field between private vehicles sellers and dealerships.
| You INVENTED a tax to "even the playing field" for dealerships? And now you're mad that people don't want to pay it?? SOUND LOGIC IS SOUND
__________________
I searched for truth, and all I found was You
|
| |
06-01-2012, 11:40 AM
|
#13 | The RS Freebie guru
Join Date: Jul 2001 Location: East Vancouver
Posts: 22,032
Thanked 2,491 Times in 860 Posts
|
Yeah, I want to hear an official explanation of why they think it's okay to collect tax on the sale of the same vehicle over and over again.
Person A buys new vehicle from dealership for $50000. Pays $6000 tax.
Person B buys that vehicle from Person A for $40000. Pays $4800 tax.
Person C buys that vehicle from Person B for $30000. Pays $3600 tax.
Person D buys that vehicle from Person C for $20000. Pays $2400 tax.
Person E buys that vehicle from Person D for $10000. Pays $1200 tax.
The government has now collected $18000 of tax from this one vehicle that originally cost $50000. WTF.
|
| | This post thanked by: | Alatar, bananana, Berzerker, cdizzle_996, Ch28, eurochevy, FARMER, Gesus, hotjoint, i-VTEC, iam_dan, J-Chow, JHatta, jmanhas, Noir, Obsideon, Psykopathik, Raid3n, some_punk, SpartanAir, tamazoid, Zedbra |
06-01-2012, 11:45 AM
|
#14 | what manner of phaggotry is this
Join Date: Nov 2001 Location: Kelownafornia
Posts: 18,285
Thanked 5,473 Times in 1,814 Posts
|
what they should do is have a record of how much you purchased the vehicle for and if you sell it for more than that used it should be taxed since it is income. if you sell if for less than that, it should not be taxed.
but the 'gifting' epidemic is horse shit and truely is a scam that should be figured out.
__________________ STRENGTHaesthetics |
| |
06-01-2012, 12:09 PM
|
#15 | RS Veteran
Join Date: Nov 2001 Location: An Island
Posts: 14,400
Thanked 5,024 Times in 1,083 Posts
|
Definitely agree that that is a cash grab to tax a car over and over everytime it is sold. Total BS.
It's interesting that they focus on gifting. The government has no idea how much tax revenue is lost when people declare the sale price as lower than the actual sale price.
I would wager that those that don't gift, will often lower the sale price to reduce the tax.
__________________ Victoria Car Assessments - Condition assessments (test drive, photos, deficiencies and summary). RS member references available. IG @touringteg
1998 Acura Integra Type R #0635
2017 Honda Civic Type R #01818
|
| |
06-01-2012, 12:41 PM
|
#16 | MiX iT Up!
Join Date: May 2006 Location: vancouver
Posts: 8,133
Thanked 2,066 Times in 865 Posts
|
What is stopping someone who wants to purchase an 80k setup a business with an HST# , and purchasing the car under the business? And claiming the paid HST? Then dissolve the business after 1yr. Extra work - but still better than paying 9600.
off topic: does anyone know how the "Property transfer tax" work when one is selling a house? Is it similar to this?
__________________ Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk.. "Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt |
| |
06-01-2012, 12:58 PM
|
#17 | Ready to be Man handled by RS!
Join Date: Apr 2012 Location: Surrey, BC
Posts: 83
Thanked 11 Times in 6 Posts
| Well that's pretty lame, the first car I ever bought was for $1,000 and I got it gifted to me because I was told it's what I should do lol.
Taxing a car every single time it's sold, that's just lame. Or gifted or whatever. |
| |
06-01-2012, 01:00 PM
|
#18 | RS Licensed Vendor
Join Date: Apr 2001 Location: 604
Posts: 14,501
Thanked 995 Times in 327 Posts
|
Fucking government.
Tax is just stupid here. If I buy something for the shop they charge 12%, then I resell it I charge 12%. The people I bought from got charged 12% etc etc.
A $100 item probably made the gov't $25+. Retarded. Let alone they taxed our income that bought the $100 item.
Seriously. |
| |
06-01-2012, 01:20 PM
|
#19 | My homepage has been set to RS
Join Date: Jun 2006 Location: Richmond
Posts: 2,222
Thanked 1,207 Times in 432 Posts
|
last time i checked, giving someone a car is not illegal, so they are pretty much inventing a crime
used buy and sell tax evasion? oh please, what a scam, they're better off asking "cash only" resturants why they don't take debit/credit card
|
| |
06-01-2012, 01:21 PM
|
#20 | Willing to sell a family member for a few minutes on RS
Join Date: Feb 2005 Location: Surrey
Posts: 12,758
Thanked 688 Times in 375 Posts
|
what a crock, just another cash grab. Not like we're not getting taxed enough
|
| |
06-01-2012, 01:47 PM
|
#21 | RS.net, where our google ads make absolutely no sense!
Join Date: Sep 2011 Location: Vancouver
Posts: 911
Thanked 297 Times in 116 Posts
|
Finance Minister Kevin Falcon |
| |
06-01-2012, 01:59 PM
|
#22 | Everyone wants a piece of R S...
Join Date: Dec 2008 Location: vancouver
Posts: 373
Thanked 772 Times in 87 Posts
|
ya this is a stupid rule....
say u sell a 10,000 car ... get taxed 12%
no tax credit because it is private property for personal use ....
ok .... i make a lot of friends ... and i like to give them cars |
| |
06-01-2012, 02:27 PM
|
#23 | Glorious Gaming PC Master Race
Join Date: Oct 2001 Location: Coquitlam y0!
Posts: 21,240
Thanked 968 Times in 446 Posts
|
shit, how many other things are double taxed? houses?
|
| |
06-01-2012, 02:33 PM
|
#24 | I told him no, what y'all do?
Join Date: Aug 2006 Location: Vancouver
Posts: 9,809
Thanked 5,785 Times in 2,492 Posts
| Quote:
Originally Posted by Turbo E shit, how many other things are double taxed? houses? | used video games
__________________ Feedback http://www.revscene.net/forums/showthread.php?t=611711 Quote: Greenstoner 1 rat shit ruins the whole congee originalhypa You cannot live the life of a whore and expect a monument to your chastity | Quote:
[22-12, 08:51]mellomandidnt think and went in straight..scrapped like a bitch
[17-09, 12:07]FastAnna glowjob
[17-09, 12:08]FastAnna I like dat
| |
| |
06-01-2012, 02:52 PM
|
#25 | In RS I Trust
Join Date: Mar 2003 Location: Mission
Posts: 20,617
Thanked 17,577 Times in 4,294 Posts
| Quote:
Originally Posted by Turbo E shit, how many other things are double taxed? houses? | The big one a lot of people don't know about is buying fuel. There is tax on top of tax on top of tax a lot of times. The goverement screw's us so much and a lot of people don't even know about it.
To me it sounds like the people in BC are smart by gifting vehicles since it is a legal loophole. They are trying to close it which will make things tougher but we will find another way to get away from the goverment fucking us.
|
| | | |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | All times are GMT -8. The time now is 05:50 AM. |