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Dodging Tax on Vehicle Transactions Might Change??
ziggyx
06-01-2012, 01:55 AM
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 (http://www.timescolonist.com/life/British+Columbians+give+thousands+cars+friends+dod ge/6706490/story.html)
belaud
06-01-2012, 02:01 AM
The entire article is satire and sarcastic, I like it.
MWR34
06-01-2012, 02:02 AM
Never done that before:ilied:
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.
Shorn
06-01-2012, 07:15 AM
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.
Levitron
06-01-2012, 07:35 AM
So two wrongs make a right?
Taxes on a USED VEHICLE SALE is as much of a "theft" to British Columbians.
Glove
06-01-2012, 07:36 AM
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.
Iceman-19
06-01-2012, 07:38 AM
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.
eclipseman
06-01-2012, 07:40 AM
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.
b-dub
06-01-2012, 09:18 AM
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?
StylinRed
06-01-2012, 09:48 AM
a scam that costs taxpayers an estimated $17 million last year
:fuckthatshit:
“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?
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
freakshow
06-01-2012, 10:04 AM
This is my favourite 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
InvisibleSoul
06-01-2012, 11:40 AM
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.
RRxtar
06-01-2012, 11:45 AM
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.
TouringTeg
06-01-2012, 12:09 PM
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.
tiger_handheld
06-01-2012, 12:41 PM
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?
JDMTrueLove
06-01-2012, 12:58 PM
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.
Cman333
06-01-2012, 01:00 PM
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. :rukidding::QQ:
dachinesedude
06-01-2012, 01:20 PM
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
hotjoint
06-01-2012, 01:21 PM
what a crock, just another cash grab. Not like we're not getting taxed enough
i-VTEC
06-01-2012, 01:47 PM
Finance Minister Kevin Falcon :2finger:
MK-EK
06-01-2012, 01:59 PM
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 ....
:suspicious:
ok .... i make a lot of friends ... and i like to give them cars :ilied:
Psykopathik
06-01-2012, 02:27 PM
shit, how many other things are double taxed? houses?
shit, how many other things are double taxed? houses?
used video games
murd0c
06-01-2012, 02:52 PM
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.
k00laid
06-01-2012, 03:00 PM
Tax tax and tax, thats all you ever hear about in vancouver. Yea it is a smart idea to gift your vehicles cuz they cant prove shit. One or another the residents of BC will find another way to pay less tax wherever way it may be, the government takes way too much of our hard earned money and pisses it all away on stupid shit without spending it to improve our quality of life in this city
Everymans
06-01-2012, 03:04 PM
I didn't even know this bullshit tax issue existed until I moved to b.c. It doesn't exist in alberta or saskatchewen. This province will find any possible reason to screw us in the ass and waste it on shit that nobody cares about.
optiblue
06-01-2012, 03:05 PM
if the government wants money so badly, they should enforce landlords and tax the rent that they collect.
JesseBlue
06-01-2012, 03:27 PM
put down $1 dollar for the price and add plus "services"....circumvent the law is the name of the game...billionaires do it all the time
adrnlnrush00
06-01-2012, 03:30 PM
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?
There are general rules in the tax act that prevents that from happening.
If the vehicle is purchased by a corp (like in your example), it gets added to the capital cost account and you can claim CCA on it annually. However, if you dissolve the company at a later date then the vehicle is deemed to have been sold to the shareholder(s) at its capital cost ($80K). But because the corp is an HST registrant, there's deemed HST as well. Therefore, you can claim the refund of $9,600 as an ITC at the time of purchase, but you'll have to pay it back when it's deemed to be sold.
There's a deemed taxable benefit when vehicles are owned by corps but used by shareholders as well.
!Kodamu
06-01-2012, 03:51 PM
The lowest amount you can put on the form is $100. Anything lower you have to use gift letter
bloodmack
06-01-2012, 04:48 PM
sure they can 'fix' this gift idea, but they can't fix the 'i bought it for 100$'. :ilied:
sleepywheel
06-01-2012, 06:32 PM
Don't forget that you can swap for a vehicle too. Just because it's a car doesn't mean you have to pay cash. I would think that swapping goods for a car is allowed.
DHP 1
06-01-2012, 06:56 PM
surprise they still have the balls to complain, again and again. Somebody needs to slap some sense into them for a wake up call, this is whore shit afterall. TAxes again and again and again on the same item
:suspicious:
Yodamaster
06-02-2012, 04:27 AM
And people actually scold me for wanting to overrun the government.
Taxing the sale of a used vehicle between private parties is the biggest fucking scam I have EVER layed my eyes on.
A big fuck you to our government, they can suck on my gifted Jetta's tail pipe.
:devil:
Gridlock
06-02-2012, 07:40 AM
Well, all I can think is its not going to matter because when the PST comes back in, there is only going to be 5% on a privately sold car...
Right liberals?
RIGHT?
asian_XL
06-02-2012, 05:54 PM
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.
That's only 36% of the value of the car over several years and paid by several people. Compare to the vechicle tax around the world, 36% is very little.
Again, they can't really stop the dodging, it's used car afterall, there's no real price out there. All the people will be driving NSX if it's according to the depreciation rate.
Vale46Rossi
06-02-2012, 06:16 PM
My buddy just sold as Ducati on Craigslist for 10k.
A RCMP officer bought it and he asked to write it as a "gift"
He said he has paid the government enough with his job.
SkinnyPupp
06-02-2012, 06:23 PM
IIRC, paying things like fines and traffic tickets are taxed too :fulloffuck:
MWR34
06-02-2012, 09:33 PM
If this window of Gifting will become closed or Force-taxable then the new "scam" will be even trades. Trading my porsche cayenne for a Ford Pinto and claiming even value. I see alot of cheap junker cars being purchased to accommodate this trade scam. $500 car instead of 5,000-10,000 in taxes.
Marco911
06-02-2012, 10:42 PM
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.
The government hates competition.
Marco911
06-02-2012, 10:53 PM
Think of it as a tax on the transaction. BC is the most socialist province in Canada. Most people on this board have taken more from government entitlements than they have contributed in tax revenue anyway, so I'm not sure why people here complain. It's high income earners like me that eventually get chased out of the Province because I refuse to pay tax to support the deadbeats that can't get their shit together.
lgman
06-03-2012, 01:10 AM
The lowest amount you can put on the form is $100. Anything lower you have to use gift letter
You can declare 90% below market value but it has to be justified. The gift letter is not always necessary.
I should really get a "NEEDS REPAIRS" Stamp for those (APV9T) Transfer forms. Writing it out all the time is so tedious.
SST Social Service Tax has been around for a while now, even before C.R.A needed carbon copies from I.C.B.C . It used to be 7% before the HST came and raped it to 12%, and now will drop back to 7% again.
I don't know how this "Trade Scam" is gonna work in your favor exactly since they have Blue/black books of MSRP/retail price on every vehicles up to 25 years old. And if the trade is unfair there has to be a justification anyways. Might as well stick with the "Car's a POS" or "Needs all the parts".
I wonder if trading for "Goat" on farm use vehicles is an acceptable bartering justification.
:considered:
yousername
06-03-2012, 01:46 AM
Taxes are retarded, and so is the government lmfao. Ridiculous.
Gridlock
06-03-2012, 07:04 AM
I like how he calls it "stealing from British Columbians"...no, you asshole, YOU are stealing from British Columbians. We are trying to keep our money.
I don't need the government to decide how much better they are at spending my money than I am.
Mr.HappySilp
06-03-2012, 09:09 AM
LOl if why not then tax all private sales including craigslist, RS BUY and Sell, kijiji, vansky.......
They should just put a tax on any 2nd hand car that made a profit on the seller side. There will always be loopholes. Want to collect tax? ppl will just put a lower amount for the car when they sell/buy it on paper or maybe even do the transcation elese where (say buy it across the boarder).
chucki
06-03-2012, 11:52 AM
Yep, next thing you know, you will get taxed at your next garage sale purchase...
This is a pretty good article against paying taxes for used-private sale cars: Don (http://opinion.financialpost.com/2011/09/06/don%E2%80%99t-buy-a-used-car-from-your-province/)
I'm opposed to paying tax on used private sale cars, but I can't stand people who ask and expect that I will gift them a car I am selling, or even ask me to mark $1000 less to save $120 in tax.
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. :rukidding::QQ:
The whole point of HST was that as a business you can claim back the entire 12% HST you paid when you file your taxes for the business, and so can your supplier, and his supplier, etc etc. So only the end purchaser actually pays the 12% unless your bookkeepers are incompetent. I'm guessing you voted HST out since it doesn't sound like you understand that point?
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.
Thing is, its NOT a legal loophole since people are obviously taking money in exchange for their used cars. So people participating are not using the loophole legally, they are just banking that it cannot be proven. Whether you justify this by saying we get taxed too much already, tax on used personal goods are bs, etc etc, still doesn't make it legal.
Yea it is a smart idea to gift your vehicles cuz they cant prove shit. One or another the residents of BC will find another way to pay less tax wherever way it may be, the government takes way too much of our hard earned money and pisses it all away on stupid shit without spending it to improve our quality of life in this city
It may be smart until you are busted and who knows what will happen. I've never done this in my vehicle sales or purchases due to the possible chance of getting caught, and not knowing what the consequences will be over a couple hundred bucks--tax evasion is something taken more seriously than DUI or murder. From the sounds of things, it doesn't sound like the chance of getting caught is even remotely slight if there are people getting away with 'gifting' $50k+ cars and all the gov can say is 'this is not right'.
Well, all I can think is its not going to matter because when the PST comes back in, there is only going to be 5% on a privately sold car...
Right liberals?
RIGHT?
Pre-HST there was still 8% PST that was charged/paid for private car sales in BC. So yes, it will matter to the province all the same.
LOl if why not then tax all private sales including craigslist, RS BUY and Sell, kijiji, vansky.......
I believe back in the PST days, all people were supposed to collect PST on privately sold goods, even for a $100 iPod, then report it when you file your personal income taxes. Obvious flaw to that was there was zero way of enforcing it, no paper trail at all, and nobody gave a damn.
Gridlock
06-03-2012, 02:09 PM
The thing of it is, i could ask for the tax to be removed, like Saskatchewan, but the tax and spend NDP and Liberals can't handle not having excess funds to play with.
They think its a crime that people aren't handing over money to the government when they buy a used car. I say fuck you. You buy a new car, you pay tax. You buy a used car, you pay tax. You buy a new house, you pay tax. You buy a used house and what now?
kleensleper
06-03-2012, 07:33 PM
The taxman will always want more.....
Psykopathik
06-04-2012, 08:22 AM
yo dawg, I heard you like tax on your tax....
They think its a crime that people aren't handing over money to the government when they buy a used car. I say fuck you.
Thing is it IS a crime they way current tax laws are written. You can despise big businesses for creatively dodging business taxes, but they are done legally if only just barely. The people buying 'gifted' cars are without a doubt the same ones who bitch about carbon tax, translink tax, etc etc. You save tax one place, you pay more somewhere else; its the circle of life.
You buy a new house, you pay tax. You buy a used house and what now?
Maybe I'm missing e-sarc, but property transfer tax 1-2% of fair market value? If they were jerks they could have asked for the full 7% PST on used homes and there would be not a thing you could do about it. Maybe gift a house? Doesn't matter because tax is on fair market value and it wouldn't be difficult to implement FMW on used vehicles.
Gridlock
06-04-2012, 09:38 AM
You know...totally sidetracking here.
It fucking pisses me off.
Students in Quebec...I think they are off their fucking rockers, but whatever. The gov't announces increases to tuition and they take to the streets in mass protests for months.
Shift a language and a few provinces over and in BC, you have people defending everything as pro-tax.
"Oh, well, we need that money to do whatever and whatever"
"Everybody pays"
We finally stand up on the HST, which may have been a good idea, but implemented poorly and a) the fucking thing still hasn't been repealed and b) people are still sitting there saying "well, it would have been good for others, so I'll take it again"
The government is charging 12% on used cars...used! Hey...you want to take a few points off the top, I get it, its Canada and we have expensive shit to pay for, but 12 fucking percent? And then act surprised when people try to get around it?
Fuck!
Are we supposed to line up like lemmings with our pants at our feet?
I find it really easy to remove oneself from the sheer amount of tax on everything, but when I switched to self-employed, when it was a check I was having to write to pay it, man, it starts to make my blood boil.
Are we supposed to line up like lemmings with our pants at our feet?
you forgot about spreading 'em & bending over...bending over is key...
spyker
06-04-2012, 01:13 PM
If they do decide to get rid of the "gift" loophole,there will be alot of vehicles being sold for $100.Either way there are loopholes around everything,if theres a will theres a way.
Students in Quebec...I think they are off their fucking rockers, but whatever. The gov't announces increases to tuition and they take to the streets in mass protests for months.
I give those students props for being so unreasonable that they are being heard, no idea how they are pulling it off and gov actually gives a damn. Their tuition rates are already lowest in Canada by a considerable margin, and they are fighting an increase of $325/yr for the next 5 years which will bring tuition close to national average, but in 5 years the national average will likely be much higher than $4700/yr. When did university education become an entitlement and right??
Maybe if the Quebec gov collected more tax on used cars they would have the money to fund the education shortfall.
MindBomber
06-04-2012, 04:25 PM
The taxman will always want more.....
Just like the population, what a coincidence..
1exotic
06-04-2012, 04:46 PM
Heh this is funny.. but I was selling one of my cars a couple days ago, I went with the buyer to an autoplan and filled out the transfer form. The autoplan agent (some lady) for some reason couldn't find out the estimated market value for the car. So she insisted that we fill out a gift form since it is "legal". This is even after the buyer told them that he PAID me and even wrote down the price on the transfer form. I was really surprised that they did that.
Spartacus
07-10-2013, 07:37 PM
Wow, so apparently this law has been in place since April 1 2013. It's going to cost me 2000$ in taxes to gift the car to my common-law girlfriend. What the flying fuck BC.
Posted via RS Mobile
melloman
07-11-2013, 07:07 AM
^^ Fuck that. Keep the car yourself, get her to pay you for the insurance, and just make her the principal operator.
GabAlmighty
07-11-2013, 10:10 AM
You just put down the value as $1 now instead
quasi
07-11-2013, 10:29 AM
^^ Fuck that. Keep the car yourself, get her to pay you for the insurance, and just make her the principal operator.
Then when she totals it and doesn't reinsure something that accident attaches to you instead of her.......First rule of ICBC is ICBC always gets there's and then some. :)
Mr.HappySilp
07-11-2013, 10:30 AM
Wow, so apparently this law has been in place since April 1 2013. It's going to cost me 2000$ in taxes to gift the car to my common-law girlfriend. What the flying fuck BC.
Posted via RS Mobile
sell it to her for 1 BJ..... you don't have to sell it for money...... it could be for something she did for you.
I wonder whould that work..... IE selling my car to a friend for fixing my computer. Maybe he charge $20k per hour and since he fix my PC I am giving him my car in exchange for the work he have done......
Great68
07-11-2013, 10:58 AM
Wow, so apparently this law has been in place since April 1 2013. It's going to cost me 2000$ in taxes to gift the car to my common-law girlfriend. What the flying fuck BC.
Posted via RS Mobile
If you are common-law, she would be defined as your spouse, therefore close family member.
Zordon
07-11-2013, 10:59 AM
You just put down the value as $1 now instead
Try explaining how that is fair market value when you get audited.
Non Qualifying Gifted Vehicles Are Taxed at Fair Market Value
If a customer has received a vehicle as a gift, but the situation does not meet the criteria outlined under exemption “Gift between Related Individuals”
• tax must be paid on the fair market value declared by the gift recipient in the following way:
o 12% PST tax rate for BC vehicles and Canadian imports
o 7% PST tax rate for US imports
The fair market value is used as the purchase price to complete the transaction.
Fair Market Value is the price a vehicle would be sold at
o by a willing seller
o to a willing buyer
o if neither was under and pressure, and
o if both parties have complete understanding of the condition of the vehicle and the relevant vehicle market
JesseBlue
07-11-2013, 03:26 PM
just say the rest are "services" :badpokerface:
Yodamaster
07-11-2013, 03:39 PM
So what happens when I actually want to trade or gift a car to someone? What if I actually bought a car for $50?
Either way, the appropriate taxes were paid when the car was new, therefore taxing that same item again in the case of a private transaction is a one hundred percent evil lizard overlord wall st. zionist scam. I don't see the government taxing me when I want to sell a welder to a friend, a welder that is worth more than some of the cars actually for sale right now.
Zordon
07-11-2013, 04:55 PM
So what happens when I actually want to trade or gift a car to someone? What if I actually bought a car for $50?
If you traded or received a car as a gift, you would have to declare a value (fair market) for it. I.E. 2000 Acura 1.6EL, you got as a gift, you would have to go on CL and see what similar condition vehicles are there and compare prices.
Let's say the average value is $3000 and you declare $1, just be prepared to possibly explain (to your insurance broker and/Consumer Taxation) how your vehicle is worth one dollar if it's the same condition as a $3000 car.
TouringTeg
07-11-2013, 06:36 PM
Wow I had no idea this had come into effect.
Just found the new form here: ICBC | FAQs | Can I transfer a vehicle to my exwife without paying tax (http://www.icbc.com/faqs/questions/transfer-vehicle-without-paying-tax)
It is for related family only. It does not mention common law.
I think people are going to declare low purchase prices instead. We all know it's been happening for years.
I don't see the government taxing me when I want to sell a welder to a friend,
Be careful what you wish for...
lgman
07-11-2013, 10:41 PM
Tax Exempt code: (a.)
Reason: NeedNewEngineBecauseRaceCarOnlyImaginbru__________ ________
*Not one fk was given that day.
It's also not an agent's responsibility to know what your car is worth. IMO I don't think CRA is gonna hunt you down for selling $3 -4 -6k below market value. 12+ yrs not one case I herd back from CRA for investigation. Just sayin.
quasi
07-12-2013, 05:45 AM
How long do you think until they change it so tax is based of blue book value regardless how much you paid for it? I could see them doing this in the future. I've never cheated on the vehicle taxes myself because I'm scared I'll get caught but more power to those who do, taxing used vehicles is total bullshit.
Expresso
07-12-2013, 10:04 AM
Tax Exempt code: (a.)
Reason: NeedNewEngineBecauseRaceCarOnlyImaginbru__________ ________
*Not one fk was given that day.
It's also not an agent's responsibility to know what your car is worth. IMO I don't think CRA is gonna hunt you down for selling $3 -4 -6k below market value. 12+ yrs not one case I herd back from CRA for investigation. Just sayin.
Raises good question. What if we declare way undervalue and just say the car needed a new motor or total rust restoration or something?
Lomac
07-13-2013, 12:43 AM
Wow I had no idea this had come into effect.
Just found the new form here: ICBC | FAQs | Can I transfer a vehicle to my exwife without paying tax (http://www.icbc.com/faqs/questions/transfer-vehicle-without-paying-tax)
It is for related family only. It does not mention common law.
I think people are going to declare low purchase prices instead. We all know it's been happening for years.
I think the argument can be made that common-law falls under related family.
Common-law couples as good as married in B.C. - British Columbia - CBC News (http://www.cbc.ca/news/canada/british-columbia/story/2013/03/18/bc-common-law-property-rules.html)
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