No. of Recommendations: 1
Yes, but since just about every other business has to charge the sales tax why should financial institutions be exempt? It is not called a "Goods and Services Tax" without reason. In the end all taxes eventually fall on the consumer.

More on the subject.

It would seem that when adding new services not covered under the existing laws the bankers have chosen to "assume" they are exempt from the Goods and Services Tax. Clearly some clarity is needed and Harper really really wants a balanced budget in 2015 before having to face the electors somewhat disillusioned by the scandals and cronyism that has been making headlines lately.

Any <tax them to death the devil knows his own> mouse

Finance review of GST rules for financial services "broadly" revenue neutral

The Canadian Press | The Canadian Press – 2 hours 18 minutes ago

By Dean Beeby, The Canadian Press

OTTAWA - The Harper government says an internal review of how much GST Canada's banks and other financial institutions should pay will not be a tax grab.

"The expectation is that any changes made as a result of the examination should be broadly revenue neutral," said Stephanie Rubec, spokeswoman for the Finance Department.

"It is done as part of the department's routine examination of the tax system to ensure it is operating efficiently and to identify areas for potential improvement."

The department quietly launched the wide-ranging review last summer to examine GST rules from 1991 that have failed to keep pace with the galloping complexity of new financial services in Canada and abroad.

The finance sector is generally exempt from the GST or HST, but certain associated services — called "supplies" in tax argot — may be taxable.

And as the sector evolves rapidly, there's deepening confusion about just what is owed to the Canada Revenue Agency, and on what services, for the value-added tax that is often harmonized with provincial tax as the HST.


"While the exemption of financial services from GST/HST may have been politically and administratively expedient at first ... ambiguity about the scope of the exemption and about its application to new products and cross-border transactions have lead to extraordinary complexity and compliance challenges."
Print the post  


This is a Politics Free Board
Politically charged posts are not permitted on the Metar Board. If you make a political post, and it is alerted, the post will be removed. Thanks!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.