Investor Presentaiton
CORPORATE LAW
BY ALAIN RANGER
BRAZIL - CANADA COMPARATIVE LAW
enumerated services. The most commonly taxed services are
telecommunications services, services relating to the repair or
installation of tangible personal property and accommodation
(hotel) services. Retail sales tax is not applicable to the transfer of
real property or related fixtures as the transfer of such property is
generally taxed through separate provincial tax legislation.
Businesses that provide either taxable goods or services in the course
of a business carried on in any of British Columbia, Saskatchewan or
Manitoba, or businesses that are resident in Canada and sell property
into British Columbia or Manitoba, are generally required to register
for retail sales tax purposes and charge, collect and remit retail sales
tax on any taxable sale.
Unlike the GST/HST and the QST, retail sales tax legislation does not
permit the claiming of input tax credits or allow for a similar tax refund
mechanism. To avoid the cascading of retail sales tax, taxable property
intended for re-sale (e.g. raw materials or inventory) is generally
exempt from retail sales tax. In addition, exemptions are generally
provided for production machinery or equipment purchased by a
manufacturer. As a matter of public policy, certain items of tangible
personal property are also exempt from retail sales tax even when
provided to an end user. The most common examples are grocery
items, children's clothing and certain educational materials.
The general rates of retail sales tax are 7% in British Columbia, 5% in
Saskatchewan and 8% in Manitoba. ■
22View entire presentation