What the...

[Jigger]

Maybe 4 yrs ago, I bought a boat from a friend of mine. I registered the boat and have the ownership papers. Everything is tickety-boo. Until today when I received a letter from the good ole Government of Ontario asking if I've paid sales tax on it and to please remit a cheque, thank-you very much. Is this normal? Anyone else ever have to pay tax on a second-hand boat? And why wouldn't they advise me of this when I registered it at the Gov. office, 4YEARS ago? Any replies would be great!

 

Edit: They aren't asking about a trailer. The tax "owing" is for the boat.

Edited April 26, 2011 by Jigger

[lookinforwalleye]

Yes you pay tax on a used boat, you have the option of paying up front when you register the trailer or 4 years later or when ever they discover you did not pay!

[GbayGiant]

Yeah I remember thinking the same thing "why should I pay tax on a boat that was obviously bought new at one point and already taxed ? " fun stuff.

[Jigger]

Yes you pay tax on a used boat, you have the option of paying up front when you register the trailer or 4 years later or when ever they discover you did not pay!

 

I had a trailer. They didn't give me the option when I registered the boat and, like Gbay mentioned, why should we(me in this case) be paying a tax on something thats already been taxed?

[lookinforwalleye]

What are you guys new?

 

if you buy a used car do you not pay tax on it?

if you buy a used house do you not pay tax on it?

 

Trust me Jigger your not the first guy that has had to pay tax on a used boat!

[Rod Caster]

I had a trailer. They didn't give me the option when I registered the boat and, like Gbay mentioned, why should we(me in this case) be paying a tax on something thats already been taxed?

 

Same on a used car. Used to only pay GST i believe...but now the HST kicked that up a notch.

 

I feel for you Jigger, double taxing is illegal...yet they still do it.

 

but, please don't waste anymore of our taxpayer money by forcing them to send you another letter

[SmokestackLightnin]

if you buy a used house do you not pay tax on it?

 

 

 

If you purchase a used house you pay Land Transfer Taxes not GST or HST unless it's a farm property or business.

Edited April 26, 2011 by SmokestackLightnin

[Terry]

bottom line is

 

yes you have to pay if you didn't pay at the time you registered it

[grt1]

same thing happened to me, I got 2 14 foot skiffs given to me by a camp owner, both were going to go to the dump but I got them, banged out the bumps , fixed the leaks, replaced the bench seats and transoms and they became serviceable for boat caches.

 

When I registered them I got my numbers and licence from customs and forgot all about them until the letter arrived wanting to knnow if i paid tax on one of them. So off I went and got a letter signed by the camp owner stating they were junk and headed for the dump so I didn't pay a cent for them. I sent this in to the tax people and they replied that this was fine.

 

3 years sfter that I got another letter wanting tax on the other boat. was I ever pissed, obviously these guys don't keep up with the paper work when it's filed and then expect all the documentation produced at their timelines. So once again I sent in a copy of the letter to them and after being sent 2 reminders that I hadn't paid the tax on the boats and 2 more replies with copies of the letter from the camp owner, the tax guys dropped their request for the sales tax.

[craigdritchie]

Pay them with used money.

[irishfield]

Since you bought the boat 4 years ago you only owe them PST if it's the Minister of Finance in Oshawa looking for their share. HST wasn't in effect 4 years ago...

 

It is mandated of all Transport Canada offices to submit monthly reports to the provincial government of "property" transfers. Then the slow wheel either decides to send out tax letters or not. Sometimes we get them on airplanes and sometimes we don't. I know one case of EIGHTEEN years later on an airplane that was won at the Elmvale Fall fair raffle.

 

With the boat... well it is what it is, but you only own them PST (8%) if it's from the Ontario Goverment.

 

Also remember bartering is legal in Canada... didn't you trade someone a pile of scrap metal for that boat? Just write same or similar on the form and send it back.

Edited April 26, 2011 by irishfield

[Woodsman]

What's even worse is when you pay the tax when you register the boat & 4 years later they send you a letter demanding you pay the tax. If I didn't still have the tax receipt I would be expected to pay a 2nd time.

Keep your receipts. I'm glad I did.

[Fisherman]

Part of the issue that a lot don't understand is as follows: Registering a trailer with a boat and motor on it are different departments. MTO(transport) is only interested in receiving the taxes due for the trailer, not boat/motor. They may forward the info(boat/motor) to revenue Ontario but that's about it. Down the road,(many years sometimes) revenue Ontario with its molasses slow system gets to the bottom of the paper pile and sees taxes due on a used boat/motor(not yet paid). Again, Transport Canada, the entity that gives you the vessel licence or registration as may be doesn't care either, they're not there to collect taxes. Therefore, best scenario, when you buy, barter, trade, are given a used boat/motor, get a receipt from the previous owner, separate from the trailer, go to the effort and get it paid up front. That way there are no ghosts in the closet to haunt you.

[lookinforwalleye]

If you purchase a used house you pay Land Transfer Taxes not GST or HST unless it's a farm property or business.

 

 

I guess I should have spelled it out!!!

[gaspumper]

Yes it happened to me a few years ago,only I had lost the bill of sale from the guy I had bought it from and he had passed away I could not prove it was a used boat so they charged me over $600.00 for taxes as if it were a new boat.No if ands or butts I had to pay it.They were going to garnishee my wages if I didn't.

[Jigger]

I'm really amazed the tax cops aren't out in full force at every garage sale from here to wawa. Or tracking Craigslist/kijii etc. Private sale should mean just that. I'm just fed up with this nonsense. Just filed my return the other day and had to pay back 30% of the EI I had to claim for going to trade school. Now this. Brutal...Guess I have to pay, but like I said :wallbash: :wallbash:

[lookinforwalleye]

I'm really amazed the tax cops aren't out in full force at every garage sale from here to wawa. Or tracking Craigslist/kijii etc. Private sale should mean just that. I'm just fed up with this nonsense. Just filed my return the other day and had to pay back 30% of the EI I had to claim for going to trade school. Now this. Brutal...Guess I have to pay, but like I said :wallbash: :wallbash:

 

Well the tax cops don`t have to be out there as you found out, and don`t worry there are plenty of "private sales" going on out there to feed the underground economy.

You seem to have overlooked the fact that all these taxes that most of us pay help pay for things like your EI and your trade school!!!

[Jer]

You seem to have overlooked the fact that all these taxes that most of us pay help pay for things like your EI and your trade school!!!

 

 

 

Ya...it makes me feel all warm & fuzzy everytime I buy something, file my return, fart...

 

...and EI is paid by my EI premiums, not by the taxes on my used boat.

[Dara]

Just pay the tax...how else will the free babysitting...errr..full day kindergarten, get paid for

[lookinforwalleye]

Ya...it makes me feel all warm & fuzzy everytime I buy something, file my return, fart...

 

...and EI is paid by my EI premiums, not by the taxes on my used boat.

 

Yes I guess that 700 or so of yearly EI deductions pays for the 32 or so weeks of benefits plus the other programs that are made available to the unemployed and underemployed!!!

 

And I don`t know if I would complain about paying taxes if I was recieving benefits that those tax dollars help pay for!!!

[lookinforwalleye]

Just pay the tax...how else will the free babysitting...errr..full day kindergarten, get paid for

 

 

[Scott S]

Just pay the tax...how else will the free babysitting...errr..full day kindergarten, get paid for

Your right on the money there Dara. lol

Scooter

[Jer]

Yes I guess that 700 or so of yearly EI deductions pays for the 32 or so weeks of benefits plus the other programs that are made available to the unemployed and underemployed!!!

 

And I don`t know if I would complain about paying taxes if I was recieving benefits that those tax dollars help pay for!!!

 

 

 

Well ya, it's called insurance. Just like my $500 a year in home insurance premiums entitles me to a claim worth hundreds of thousands of dollars if, God forbid, my house burns down.

 

I may be wrong, it happens once and a while, but I believe that EI benefits are completely funded by the EI premiums paid by all the working folk. I don't know if it's still the case, but it used to run a surplus.

[lookinforwalleye]

Lets watch some hockey!!!

[irishfield]

I may be wrong, it happens once and a while, but I believe that EI benefits are completely funded by the EI premiums paid by all the working folk. I don't know if it's still the case, but it used to run a surplus.

 

And ya would be... your employer pays 1.4 x what you do on the workers behalf (for some reason) and the owners can't even claim EI when the place goes out of business. CPP gets matched dollar for dollar (employee and employer) and that fund is almost broke...