Tuesday, July 27, 2010

HST, otherwise known as the Hated Sales Tax

Fashion costs money, we all know that.  In turn, a fashion victim must work hard or have super rich daddies to be able to afford the things they want.  Unfortunately, I don't fit into the latter category, as I am sitting here at work as I write this.  To save money, however, one can go the DIY-route and start constructing fashion for oneself.

I enrolled in a sewing class a month ago, with the hopes of maybe one day be able to craft dresses, tops and skirts myself.  Saving myself money on clothes, and at the tailor.  It would also be nice to make the things I crave in my head, but are never available in stores.  I paid the $277 fee and walked away, excited, knowing that in a month I will commence on my journey to becoming a master couturier (ha! I wish...)

The first class, I received a notice saying that I owe The Sewing Studio a balance of $43... which was news to me, considering the fact I paid in full (with taxes included) BEFORE the dreaded deadline of July 1st.  In fact, I recall specifically booking it from work to the Rosedale sewing studio on June 30 to avoid giving the mother-fucking government more than they deserved.

After explaining this to the teacher, I was emailed the following:

"We understand your frustration with having to pay the HST. Unfortunately, HST has hit everyone hard, including us at The Sewing Studio. It's a shame that this new tax has affected everyone's personal finances and it has caused a lot of confusion amongst consumers, including The Sewing Studio's students.


Please review the guideline below as listed on the Ministry of Revenue website:

16. How will the HST be applied to consumer purchases that straddle July 1, 2010?

For purchases made starting May 1, 2010, consumers will be charged the 13% HST for goods received or services performed after June 30, 2010.

For example: In May 2010, a person makes a partial payment to purchase furniture. Under the agreement, the person takes delivery of the furniture in July 2010, makes 12 additional monthly payments between July 2010 and June 2011, and receives ownership of the furniture when all the payments have been made. The HST will apply to the sale of the furniture.

Find out more about transitional rules or call 1 800 337-7222."

Argggh.  I assumed that the director of the school just twisted the rules around in order to pocket some extra cash... but after calling the government... apparently there is something called a "transfer tax" for purchases on services made between May 1 2010 and July 1 2010. 

If I do recall... my mother purchased tennis classes in June for my little sister and avoided this so-called "transfer tax"... is this the government's way for covering their asses and outsmarting consumers who bought stuff before June 30?

It sounds like a scam to me. Why does the government keep milking the public out of money for random stuff like this.  If I bought gas on June 30, I would have paid 96 cents, not 108... that rule should have applied to everything, with no exceptions, transfer taxes or any other bullshit in order to cushion the lunch budget of the MPs or to help redecorate their offices. 

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