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BS: Way to go, Costco!

19 Jan 06 - 06:52 PM (#1651740)
Subject: BS: Way to go, Costco!
From: Metchosin

I knew there were other reasons I liked this store. Costco threatened to take the BC provincial government to court, after the BC government demanded that Costco turn over their customer records of BC residents purchasing goods in Alberta.

Seems the BC government wants to ding anyone from this province who shopped in Alberta, going back to 1991?, for BC sales tax on any items purchased in Alberta where there is no provincial sales tax.

Costco said that their customer records are private and that it would fight the BC government in court to retain their customer's right to privacy. It now would appear that the BC gorvernment is considering backing down.


19 Jan 06 - 07:12 PM (#1651763)
Subject: RE: BS: Way to go, Costco!
From: Amos

CostCo not only has spine, they are famous for taking much better care of their people than Walmart does in terms of healthcare and other benefits. I am glad to spend a little more there and stay out of the Walmart nightmare.

A


19 Jan 06 - 08:29 PM (#1651828)
Subject: RE: BS: Way to go, Costco!
From: Peace

Glad to hear that.


19 Jan 06 - 08:55 PM (#1651849)
Subject: RE: BS: Way to go, Costco!
From: Jeri

Sounds bizarre. I don't know Canadian tax laws at all, but I'd think sales tax is charged based on the laws where the sale happens. That's the way it is south of the border. I live in New Hampshire, and one of it's attractions is the lack of sales tax.


19 Jan 06 - 09:02 PM (#1651855)
Subject: RE: BS: Way to go, Costco!
From: SINSULL

A few years back, NYC got a little over ambitious in its attempts to collect sales tax. They had spy cameras in NJ shopping malls taking pictures of cars with NY plates. Then they tried to force the owners to pay tax to NY on purchases brought back into NY. They didn't succeed.


19 Jan 06 - 09:02 PM (#1651856)
Subject: RE: BS: Way to go, Costco!
From: Peace

Jeri,

Here, in Alberta, there is no Provincial Sales Tax. There is the Federal Goods and Services Tax (GST) which is applied on many items (non-nutritional food, clothing, cars, tvs, shampoo, soap, etc) at the rate of 7%. In Saskatchewan, there IS a Provincial Sales Tax which is applied at 7% also. So, I buy an item for $100 in Saskatchewan. I first get the GST at 7%, The cost is now $107. Then that is taxed Provincially. So, add 7% of $107.


19 Jan 06 - 09:09 PM (#1651859)
Subject: RE: BS: Way to go, Costco!
From: GUEST,petr

actually the BC tax law requires citizens to pay tax on items they buy from out of province. we are supposed to regulate ourselves...

so if you order software or something online you should declare and pay 7% prov. sales tax on it.

a couple of years ago when the provincial govt was looking for more money they hired a whole bunch more tax auditors and went after all sorts of businesses.

At least two of my customers (who were graphic designers) were audited
and had to pay thousands in back taxes, that they (apparently) should have been charging. Except that the rules were really stupid - there is no tax on design unless there is a tangible item, so if you email or ftp someones artwork its ok, but if you put it on a 50cent disk the whole job is taxable, because the disk is a tangible item, this also applied to film, that was output for a print job.

(there was no tax if the customer supplied the disk, and you couldnt give the customer the disk - however if you loaned the client the disk it was ok.. go figure)

it is an out and out tax grab.

(on top of that they also went after the customers who hadnt paid the taxes, so they ended up collecting them twice)

there wasnt much you could do about it, they would go through the books and pick out 3months - find out what the tax should have been,
and apply it back over 6 years (as well as a fine) and seized it from your account.


19 Jan 06 - 09:10 PM (#1651861)
Subject: RE: BS: Way to go, Costco!
From: Peace

Sorry. Clicked the button.

Another 7% of $107 makes the totla cost of the item become $114.49. If I was buying a car at say $50,000, then by avoiding the Provincial Sales Tax I could save $3745.00. So, folks will cross the border and buy in Alberta. But, they then take the goods home to either Saskatchewan or BC. It means that S and BC are losing out on the cash.


19 Jan 06 - 09:11 PM (#1651863)
Subject: RE: BS: Way to go, Costco!
From: GUEST,Lucky Pierre

Infighting amongst the Provinces. Sibling rivalry.

Vive La France!


19 Jan 06 - 09:15 PM (#1651865)
Subject: RE: BS: Way to go, Costco!
From: Peace

FYATHYRIO.


19 Jan 06 - 09:25 PM (#1651873)
Subject: RE: BS: Way to go, Costco!
From: Bobert

Whew!!!

I've been shopping at Costo since it was Price Club...

Great deals, decnt product and now it's nice to find out they are on the right side of the screw-you equation...

Bobert


19 Jan 06 - 09:30 PM (#1651882)
Subject: RE: BS: Way to go, Costco!
From: Peace

"they are on the right side of the screw-you equation"

LOL. Never heard that before. Neat expression.


19 Jan 06 - 10:43 PM (#1651950)
Subject: RE: BS: Way to go, Costco!
From: bobad

Peace

I am surprised to hear that Sask. does the same as Quebec ie. tax tax.

At least Ontario has the decency to charge PST and GST separately calculated on the item's cost.


19 Jan 06 - 10:54 PM (#1651963)
Subject: RE: BS: Way to go, Costco!
From: Amos

Ah, Lucky Pierre -- always in the middle!


A


19 Jan 06 - 10:55 PM (#1651965)
Subject: RE: BS: Way to go, Costco!
From: number 6

"At least Ontario has the decency to charge PST and GST separately calculated on the item's cost."

... real decent of them. A government with a Big Heart!

sIx


19 Jan 06 - 11:37 PM (#1652008)
Subject: RE: BS: Way to go, Costco!
From: Gurney

In New Zealand we pay GST too, at a rate of 12.5%. On virtually everything except bank charges.

Three things burn me about it.
GST goes on everything every time that thing changes hands, so if it goes from importer to wholesaler to retailer to purchaser, the cutomer is paying GST on the GST-increased price, and at that rate, it gets really big. I was told by someone in the taxation department that there have been items that 60% of the price of was GST. 60%.
(All the dealers claim their GST back, but it adds up for the purchaser.)

It is on Road Tax and other government charges. A tax on a tax, like the previous example.

As a contractor, I have to collect it, an acting, unpaid, untrained tax collector. Unlike the taxation department, I am personally liable to pay any shortfall, for any reason.

I do NOT like GST.


19 Jan 06 - 11:40 PM (#1652012)
Subject: RE: BS: Way to go, Costco!
From: Old Guy

Amos has a sensauma but he don't use it too often.


19 Jan 06 - 11:52 PM (#1652021)
Subject: RE: BS: Way to go, Costco!
From: number 6

I say eliminate the GST in Canada and bring back the good 'ol MFT. Didn't Brian Mulroney promise that a washing will cost us less by replacing the MFT with the GST?? The liar!

well, now getting on track and in scope with this thread ... it'll be "way to go Costgo" when they eliminate the annual $35 cdn fee (or whatever the hell it is).

sIx


20 Jan 06 - 12:06 AM (#1652033)
Subject: RE: BS: Way to go, Costco!
From: Metchosin

Gurney, I have to do the same thing here as an unpaid tax collector with our federal GST too. My resentment is extreme. It's proably one of the reasons I got such a kick out of Costco's jam, even though it was a provincial tax in question, not federal.

The other thing I can pretty well guarantee is, if Costco had been a Canadian company, rather than an American one, the information regarding their customers accounts, would have been in the hands of the provincial government in a heartbeat.

Americans seem to have a far greater willingness to challenge government authority than Canadians do, when it comes to privacy issues. I admire them for it.


20 Jan 06 - 01:20 PM (#1652094)
Subject: RE: BS: Way to go, Costco!
From: TheBigPinkLad

The law requires BC citizens to pay PST on items purchased out-of-province for use in-province. Compliance is on the honour system. Non-compliance is subject to prosecution. Every dollar the dishonorable rip off from the taxman is replaced by another from someone's else's pocket.


20 Jan 06 - 02:37 PM (#1652141)
Subject: RE: BS: Way to go, Costco!
From: gnu

What really burns my butt is that if I collect more than X $ in HST (a blend of GST and PST @ 15%) this year, I have to pay the same amount in either monthly or quarterly installments (depending on the amount collected this year) next year, even if I am collecting less than that amount. The assholes want me to pay them taxes which I might not be collecting. I collect most of my HST in the summer and fall, but they want me to pay all winter and spring, based on last year.

BTW, they are not a friendly bunch.


20 Jan 06 - 03:15 PM (#1652177)
Subject: RE: BS: Way to go, Costco!
From: Metchosin

no they are not a friendly bunch....

BPL, someone else's pocket? Tell me about that.... I feel no remorse or moral outrage regarding a bit of missed Provincial tax in the grand scheme of things. The Feds owe way more for work done on their behalf, re GST collection and record keeping of their tax, in time alone, to every small business person in this country, than ever was lost as a result of inter-provincial shopping.

And some wonder why the self employed can be a cranky bunch at times too. Walk a mile in our shoes.


20 Jan 06 - 11:02 PM (#1652522)
Subject: RE: BS: Way to go, Costco!
From: GUEST,Lena

I am originally from BC and now live in Alberta. My dad has one Costco memebership card and I have his spouse card on the same account. Does this mean that the BC government wants to hit my dad for the tax on the toilet paper that I bought yesterday? If the tax thing goes through, then I want all the PST that waste when I visit BC


21 Jan 06 - 06:28 AM (#1652675)
Subject: RE: BS: Way to go, Costco!
From: gnu

Re buying a vehicle in another jurisdiction with a lower sales tax rate. Anything that is registered is traceable. Remember, we're talking about the government. Many New Brunswickers found out the hard when they were required to pay the NB tax AFTER already paying the tax in another jurisdiction. Since the HST came in, it doesn't happen... much.

Of course, say you were transferred to NB from AB and bought a vehicle in NB. As long as you can show you were a resident of AB for six months after you bought the vehicle, you're clear of the NB tax.
And the prices in AB are way less than here in NB.

Here's a hypothetical example of the 6 month rule. Let's say a lad from Kent County works 9 months in northern AB and returns home for the hunting and Xmas seasons, as required by Kent County Law. At the end of month three in AB, he buys a truck for $50k and it sits in the Dealer's yard until he goes home. When home, even before opening his EI claim (Employment Insurance, the dole, pogey, unemployment enjoyment), he sells it for $55k. Same truck costs 60K plus 9K HST here. Not that the boys up Kent County would ever work such a scam... year after year after year.


21 Jan 06 - 06:44 AM (#1652682)
Subject: RE: BS: Way to go, Costco!
From: gnu

I said, "Of course, say you were transferred to NB from AB and bought a vehicle in NB." Which means I need at least another couple of cups of tea to wake up. Of course, it should read, "Of course, say you were transferred to NB from AB and bought a vehicle in AB."


21 Jan 06 - 10:09 AM (#1652749)
Subject: RE: BS: Way to go, Costco!
From: GUEST,skwerl

This is just another case of the BC LIberals trying to rip off everyday working people of BC. Hey Ho the Liberals have got to go. They have been judged in Internationla courts and found lacking on numerous occassions, and now they want to attack my fundamental right to privacy. I hope they are sent packing by Costco on this one, my union, the BCTF, just applied to the UN again yesterday to have them sanctioned for their mean spirited lack of values, and we will win again. Rebel now against the oligarchy which poses to be "liberal"

Rebel Now


21 Jan 06 - 11:22 AM (#1652802)
Subject: RE: BS: Way to go, Costco!
From: Stilly River Sage

Metchosin, not so about those records in the States vs Canada. There are plenty of companies here fighting the Putsch administration's attempts to collect records. U.S. librarians are fighting the valiant fight to keep library user records away from the feds, and just yesterday it was announced that Google is not complying with the U.S. justice department request for records on specific searches and some random samples.

My parents both liked Costco, but I haven't shopped there because it isn't as close-by as Sam's Club. (This is a contradiction, I realize, because I never shop in Walmart, just Sam's.) I think Costco gave me a membership when they first moved here several years ago, but the trouble was I only drove past it on my way to work and they weren't open yet. If I make the trip over to Costco will I find comparable products?

The thing that keeps me going back to Sam's is their rotisserie chicken. I buy other things there during the month, but on those evenings when we don't feel like cooking, they have a store-cooked bird that is much larger than those you find for the same price at the local grocery. While the grocery may have a 3 lb cooked bird for a little under $5, Sam's is in the 5-6 lb range. This means it lasts for a couple of meals.

Does Costco have takeout food? How is it? I suppose I ought to go take a look. I haven't paid my Sam's membership yet this year.

SRS


22 Jan 06 - 12:33 AM (#1653250)
Subject: RE: BS: Way to go, Costco!
From: Dani

Damn good food at Costco. Their rotisserie chicken is to die for.

The prices are fabulous. As a chef, I have access to any wholesaler I want, but many won't give me their best prices because I'm not a huge institutional buyer. My main wholesaler's salesman calls Costco "chef's best friend".

Mine has abulous fresh fruits and veggies, many organics, great deals on wine, great fresh breads baked inhouse.... VERY different from my experiences with Sam's Club/Walmart. I get the best prices there on nuts, vanilla, spices, cheese, frozen foods, many others.

Can you tell I'm a big fan?

Plus also, I can fill up my gas tank there and save even more money.

The very best part is, they are (from what I read) a very ethical, people-conscious company.

Dani


22 Jan 06 - 01:23 AM (#1653280)
Subject: RE: BS: Way to go, Costco!
From: Dave'sWife

Sinsull - New York got aggressive because NYC folks (who have to also pay CST as well as SST and.. they pay CIT as well as SIT) had these elaborate systems for calling purchases in to NJ vendors just barely across the border who were essentially middlemen. then, somebody from NYC would pick up all the merchandise and redistribute it back in NYC - mostly high ticket items such as electornics, luxury jewlery and furs.

then there's the thing where NYC jewelry stores will mail an emtpy box to a NJ PO BOC and let you walk out with the Diamonds sans any sales tax. (a felony for both buyer and seller)


22 Jan 06 - 02:32 AM (#1653300)
Subject: our home and native land
From: GUEST,Elizabeth

You almost don't want to submit an opinion for fear the Gov. traces you and starts following you to Costco on a regular basis, then audits and fines you because your 13 year old and her classmates didn't charge GST on the pop and chips they sold at their school to raise money for new uniforms which they would pay GST on.
It's some couuntry we live in.
My husband has a business (on paper) he hasn't operated in over 7 years. In other words, no money made, no GST charged. I tried to close the GST account, rather than file nil returns every 3 months. Alas, the account can't be closed unless all assets of the company are sold, and of course the GST reported and paid on the sale of those items. Enter this, my husband formed a new company, this company is a LTD. one, requiring different regulations on returns. So of course, a new GST number. The assets of the old company, ie: heavy equipment are being used by the new company, so they will not be sold. To make a long story short, Rev Canada will not close the account until the company pays the GST on it's assets. They suggested that the new company purchase the assets from the old company for fair market value. I thought that very sweet and thoughtful of them. But instead, I think we'll just make a telephone call to telefile every 3 months rather than pay, say, about 21,000.00. I'll do it for the rest of my life if I have to.
Here's the kicker, even though the company has filed nil reports and returns for 7 long years, that's 28 GST returns, if I am ever late with one, they immediately assess a 3 month estimate of around 6,000 owing. Whatever.