dave@lsuc.UUCP (03/07/87)
In article <5654@watmath.UUCP> rwwetmore@watmath.UUCP (Ross Wetmore) writes: > I'm confused. I *always* thought business sales tax was computed from >gross inventory and never in bits and drabs from each individual sale. Not in Ontario or similar retail sales tax jurisdictions. The Retail Sales Tax Act provides that "every purchaser of tangible personal property ... shall pay to Her Majesty in right of Ontario a tax" (s.2(1)); "every vendor is an agent of the Minister and as such shall levy and collect the taxes imposed by this Act upon the purchaser or consumer (s.8(1)); and "the taxes imposed by this Act ... shall be collected at the time of the sale ... and be remitted to the Treasurer of Ontario" (s.9). (I'm at home and don't have a copy of the RSTA more current than 1970 available, but I don't believe these provisions have changed substantially, if at all.) Incidentally, the sales tax isn't a tax on the sale at all. It's a tax "in respect of the consumption of use" of the product (s.2(1)). The sale just happens to be the point at which it's collected. The proposed business transfer tax, which may replace the federal sales tax, will be based not on individual sales but on the total year's sales minus purchases. David Sherman The Law Society of Upper Canada Toronto -- { seismo!mnetor cbosgd!utgpu watmath decvax!utcsri ihnp4!utzoo } !lsuc!dave