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For those of you in Ontario and B.C. this effects you. For Canadians this effects all of us. Again big business has rulled and, Canadian's and our planet has lost.
March 2010
Harmonized Sales Tax for Ontario and British Columbia – Point-of-Sale Rebate on Children's Goods
The Government of Ontario and the Government of British Columbia have each proposed a harmonized sales tax (HST) which would come into effect on July 1, 2010.
The HST rate in Ontario will be 13% of which 5% will represent the federal part and 8% the provincial part.
The Government of British Columbia has proposed that the HST rate would be 12% of which 5% would represent the federal part and 7% the provincial part.
This info sheet reflects proposed tax changes announced in:
- the 2009 Ontario Budget and the document, Ontario’s Tax Plan for Jobs and Growth: Cutting Personal and Corporate Taxes and Harmonizing Sales Taxes, released by the Government of Ontario on November 16, 2009; and
- the News Release issued by the Government of British Columbia on July 23, 2009, and the Tax Information Notice – HST Notice #2, Point-of-Sale Rebates for British Columbia HST, released by the Government of British Columbia on November 16, 2009.
Any commentary in this info sheet should not be taken as a statement by the Canada Revenue Agency (CRA) that the proposed point-of-sale rebates will be enacted in their current form.
The governments of Ontario and British Columbia have each announced that they would provide a point-of-sale rebate of the provincial part of the proposed HST payable on qualifying children’s goods. The CRA and the Canada Border Services Agency (CBSA) would administer these rebates on behalf of the governments of Ontario and British Columbia.
Children’s diapers
Cloth or disposable diapers that are designed for babies or children would be qualifying children’s diapers for purposes of the rebate. Diapers designed for babies or children would include diaper inserts and liners, rubber pants, and training pants.
The following goods would not be qualifying children’s diapers for purposes of the rebate, and therefore, no rebate would be available in respect of the provincial part of the HST payable on these goods:
- adult-sized diapers even if acquired for a child; and
- children’s diapers provided as part of a diaper service.
So not only is this a slap in the face for families wanting to do the right thing it gets worse. This is an example from the CRA web site. Basically a throw away product that pollutes our world and only is good for maybe 3 to 4 hours at best is considered a rebate..
Example 3
A wholesaler in Ontario sells an order of disposable children’s diapers to a retailer in Ontario.
Disposable children’s diapers will be qualifying children’s goods for purposes of the rebate. Because the rebate will apply to sales at any point in the distribution chain, the wholesaler will collect only the 5% federal part of the HST and pay or credit the rebate of the 8% provincial part of the HST to the retailer at the point of sale.
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