REVscene Automotive Forum - View Single Post

extui · 05-18-2013, 01:05 AM

Hey guys,

Just received a letter from Consumer Tax ministry and it is seriously bugging me. Was hoping someone can give me any advice or share their experience with this kind of issue. Thank you in advance!

Last year I bought a car from my childhood friend who had already left the country settled in the USA. The car was purchased brand new and registered in British Columbia, but he drove it to the USA with him and it was used there for a year or so. After some time in the USA he decided to buy a new car there and thought he no longer needed the car, so he agreed to sell it to me for very cheap(30% of "fair market value" according to some Gold Book). Money isn't really an issue for him and he didn't really care as we've known eachother and been through a lot in the past.
So he drove 5000km back to Vancouver from the east side of USA to drop off the car for me. We transferred the vehicle ownership to me and he left shortly after back to the USA. At the time I did not even give him any money since he agreed to let me pay it over the next few years in the form of online monthly payments.

Just last week I received a letter from the consumer taxation branch that says the private sale between me and my childhood friend has a tax owing since the car was sold at 1/3 of the market value. The letter also gives me 30 days to take actions or they would "decide" for me how much I bought the car for and make me pay more taxes on the second hand car.

I have searched all over google as well as the forums for a situation or a case similar to mine, but was not able to find any. The only documentation I have to show the ministry is my bank statement which shows the monthly payments I've been paying my buddy in the last 12 months. The amount that the ministry thinks I bought my car from my friend for would not be affordable to me anyways..

This is honestly not an attempt to not pay taxes, and I am more than willing to be paying the outstanding taxes-but only if it is justified.

Any advice would be much appreciated!

05-18-2013, 01:05 AM	#1
extui RS Lurker, I don't post! Join Date: May 2013 Location: Vancouver Posts: 2 Thanked 0 Times in 0 Posts Failed 0 Times in 0 Posts	Tax owing for vehicle? Hey guys, Just received a letter from Consumer Tax ministry and it is seriously bugging me. Was hoping someone can give me any advice or share their experience with this kind of issue. Thank you in advance! Last year I bought a car from my childhood friend who had already left the country settled in the USA. The car was purchased brand new and registered in British Columbia, but he drove it to the USA with him and it was used there for a year or so. After some time in the USA he decided to buy a new car there and thought he no longer needed the car, so he agreed to sell it to me for very cheap(30% of "fair market value" according to some Gold Book). Money isn't really an issue for him and he didn't really care as we've known eachother and been through a lot in the past. So he drove 5000km back to Vancouver from the east side of USA to drop off the car for me. We transferred the vehicle ownership to me and he left shortly after back to the USA. At the time I did not even give him any money since he agreed to let me pay it over the next few years in the form of online monthly payments. Just last week I received a letter from the consumer taxation branch that says the private sale between me and my childhood friend has a tax owing since the car was sold at 1/3 of the market value. The letter also gives me 30 days to take actions or they would "decide" for me how much I bought the car for and make me pay more taxes on the second hand car. I have searched all over google as well as the forums for a situation or a case similar to mine, but was not able to find any. The only documentation I have to show the ministry is my bank statement which shows the monthly payments I've been paying my buddy in the last 12 months. The amount that the ministry thinks I bought my car from my friend for would not be affordable to me anyways.. This is honestly not an attempt to not pay taxes, and I am more than willing to be paying the outstanding taxes-but only if it is justified. Any advice would be much appreciated!