CBC;
The owners of a restaurant and pub in Victoria by the Sea have been asked to pay the province $24,000 in anticipated sales tax before serving a single meal or pouring a pint.
[…]
Hunter and Storey have used their own money to set up shop on the Victoria wharf. And they have been able to avoid taking out a loan to help start their business.
Hunter can’t understand why government thinks he and his partner would run off with sales tax money.
The provincial government figures, based on projected sales, the PST for this summer will be $24,000. And it wants the money before any business takes place.
[…]
Provincial Tax Commissioner Jim Ramsey said taxpayers lose $2 million a year when businesses go under. He said new businesses that are considered high risk are asked to pay up front, and the policy is paying off.
Asking a small, self-financed business to fork over thousands before they open the doors, because they risk going under before their first tax bill comes due, sounds less like prudent departmental policy than it does self-fulfilling prophesy.
Via Stephen Taylor.
In fact, it kinda sounds like the government’s helping to ensure there’s a good possibility they’ll go under.
Can I say “shitheads” here??
That’s government for you. Any chance that I can demand a government funded serice in advance of paying taxes – just in case it is shut off like the delisting from OHIP of eye examinations? Not bloody likely.
Good freakin’ gawd.
Wow…that’s the stupidest thing I’ve ever heard.
In my intro tax class, there were 6 main concepts we studied, remembered by the acronym GIPCAM. (If memory serves me correctly)
The “G” stood for Government As A Business Partner – meaning that while you owe them a share of your successes, they also share in your risk…that is, when you lose money, most times you can claim it against those times when you made money, and paid tax on it.
When it comes to PST, I’m not too familiar with the different province’s rules. With the GST, you may have to “pre-pay” in instalments. But…Those instalments are based on prior period balances owing, though…and I can’t see how the PEI government can possibly get away with this. Even if the business does go under, with sales taxes, the business is acting as a “trust,” in that it is essentially collecting money for the government. My understanding is that because of this, GST/PST officials can actually go after the owner’s personal assets if the business fails, whereas, if it was corporate tax that was owing, they might be restricted to seizing just the corporate assets.
Anyways, government should be encouraging entrepreneurs to set up shop, not shut them down. That’s why they give a large tax credit for scientific research work…to encourage taking risks.
Let’s see, we’ve got to stop those Christian “activists” so maybe we should pre-emptively tax those people too with their book stores and gift shops.
What a great tool for social and business/economic discrimination, err, I meant, engineering – deciding who has to pay taxes up front.
Yep, the policy is working.
No new businesses are stiffing the tax collector because there are no new businesses.
Brilliant.
Hey, great idea. And I’m sure that he government, in return, will guarantee full services without any government strikes for the upcoming year. Right?
And all promises made during an election will be implemented BEFORE the politicians get paid, because new governments could be considered “high-risk”, as far as keeping those promises are concerned.
Fuck.
Jeez. That’d sure put my business plan in a bind, even after 20 years. Wonder why they just don’t require monthly returns? New York Sales tax does once you reach a certain level of quarterly sales. You collect the money this month and have to file and pay by the 20th of next month. Not so difficult. I don’t think NYS ever requires “projected” advance payments.
Jeez has been mentioned.
Was it Matthew who was a tax collector? Or was it Judas?
Remember this when the day of revolution arrives. Blowing up mailboxes is so 1960’s. Standing in front of a tank is passe.
Withholding the only true means by which they can exert any control over the populace (ie-tax dollars) will be our best (maybe only) recourse.
Coming to a community near you!
PEI the province with 135,000 population (smaller than many decent sized cities or suburbs) and a virtual Lieberal fiefdom shows the way.
Obviously these people are not good lieberals and might in fact show that a business can be run without government loans or subsidies on an island addicted to welfare and handouts. They must be punished pro-actively.
I think a revolution started this way in the US a couple hundred years ago. I can only hope.
Hm. The goose might not live long enough to supply us with golden eggs, so we might as well cook it now.
Outrageous. This practice of pre-taxing took a set back when Artist Toni Only burned some canvasses down on Wreck Beach below the cliffs behind the University of B.C. Remember that?
Maybe these guys could burn a shed off the back of the restarant and earn a tax credit.
When I did business, the rule was you made sales during the month and paid taxes at the end of the month. I never heard of pre-tax legislation.
It’s just the brainsorm of another manager looking for money grabbing bonuses like those that Gordon Campbell paid out to Managers of Insurnace Corp of B.C. 400 Million dollars in surplus points to public rip-off, in my book.
73s TonyGuitar
PST.
Psychic Sales Tax?
This is inane. I could perhaps see a week in advance and making that as a deposit, however if they remitted monthly surely that would be sufficient. I suggest that they get after their MLAs and government ministers plus the Daily Colonist plus the VancouverSun plus the Globe and MAil plus the talk show hosts like Bill Good, Peter Warren
Anyone think maybe the PEI gov’t. forgot how sales tax works? Like, you have to, you know, have sales first before you can have sales tax?
What a concept, eh?
Let me see if I have this right?
This is a so-called hard right-wing Liberal Government doing this?
Gawd, what would an NDP government do? Ask them to pay $50K up front?
Hire ten aboriginal…then let them go telling them why.
Then call the CBC.
…Don’t mention it..just glad to help.
Paul