Gov't exempt from GST??

[diamonddave]

Can anyone explain to me why the gov't is exempt from paying the gst on goods?? Doesn't make sense to me when they are just a buisness like any other.....

[Okotokian]

This is your joke of the day, right?

[Shmag]

If they push this PST through, you won't give a rats ***** about the GST,lol

Apparently the richest province in Canada now needs a PST...what will they think of next

[pophouseman]

Originally Posted by Okotokian

This is your joke of the day, right?

One can only hope

[WCTHEMI]

Originally Posted by diamonddave

Can anyone explain to me why the gov't is exempt from paying the gst on goods?? Doesn't make sense to me when they are just a buisness like any other.....

Would you charge yourself taxes if you were the government?

[Boberama]

So they set up a tax collection agency to tax their purchases and then pay the money back to themselves?

It could work. It seems silly, but they don't lose any money and they create many new civil service jobs.

[Grizzly Adams]

When I do a RAAP [Residential Rehabilitation Assistance Program ] job, I have to bill GST, even though the cheque comes from CMHC, a branch of the Federal government. There is a maximum contract amount, that includes GST. I then declare it and pay it back to Revenue Canada, another dept. of same. You would think that these are basically a form of Social Assistance and GST is revenue neutral here, it wouldn't be included. Not so.

Grizz

[densa44]

Can you imagine the chaos if one government could tax another level of government. They would have great fun, but remember there is only ONE taxpayer!

[Ebrand]

There is a Tax rule making Governments tax exempt from each other.

[aught-six]

Most Provinces were at one time party to a Reciprocal Taxation Agreement where the Province agrees not to subject the Federal Government to tax and vice-versa. Alberta never signed the RTA , but has a Memorandum of Understanding (or similar document) in place with the Feds. So, there is a list of Alberta Government Entities that do not pay GST.

Provinces who have agreed to the HST (and scrap their own PST) had to start paying the HST as a condition of the harmonization.

Federal departments have always paid GST and get a full rebate internally.

... you still awake?