eBay

pierrelebel · ‎10-11-2013

Much has been written in the last six months about a large percentage of parcels containing taxable products ($20+) and going through Canada Customs without any tax being assessed. Different posters have different experiences but it would be nice to get the facts - if the information is available.

Today I wrote to my member of Parliament. You may want to do the same in different parts of the country and see if we get consistent answers.

"Good afternoon.

As we all know e-commerce is booming. Canadians buy more by mail through the Internet as ever before. Looking at companies like eBay doing over one billion dollar a year (purchases by Canadians mostly from the USA), it means substantial amounts of tax revenues (GST/HST) are no longer collected in Canada by Canadian merchants (and remitted to CRA) but assessed instead by Canada Customs and collected by Canada Post at time of delivery. We are looking at HUNDREDS OF MILLIONS OF TAX DOLLARS, MAYBE BILLIONS. That is big business and every dollar will help reduce the deficit and eventually lower the national debt.

My question to you today is: do you have information as to how many parcels arrive in Canada through the postal system every year from the USA and overseas and what is the total dollar value of these importations. Also, what is the total amount of taxes (GST/HST/PST) collected on taxable imported products coming by mail. Finally, as we all know, a large portion of postal parcels coming through Canada Customs are not assessed any tax despite the fact they are valued at more than $20 according to their Customs Declaration and tax(es) should be assessed and collected according to the law:

http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

This leads to my final question: why are so many parcels ignored by Canada Customs? GST/HST registered merchants must account for every penny of tax collectables on their revenues. Otherwise they pay fines and interest. Why would Canada Customs be the worst offender when it comes to tax collection?

Hopefully you do have answers to my questions or know how to get them.

Thank you for your time."

If you really care about the issue and wish to contact your MP on the subject to possibly get factual information, feel free to copy any or all parts of my message.

i*m-still-here · ‎10-11-2013

That, my friend............... If they listened, would be The Kiss of Death for eBay.ca.

This is the last place you should post that letter.

marnotom! · ‎10-11-2013

@i*m-still-here wrote:

That, my friend............... If they listened, would be The Kiss of Death for eBay.ca.

Why?

pierrelebel · ‎10-11-2013

"Why?"

Three questions have been asked:

1) number and value of parcels imported by mail

2) taxes collected on such parcels

3) why so many go through Customs without being assessed.

Frankly I do not see how getting factual answers to those questions would affect the viability of eBay.ca in any way.

dipmicro · ‎10-11-2013

@i*m-still-here wrote:

This is the last place you should post that letter.

I absolutely disagree. Not collecting taxes at entry puts foreign merchants and manufacturers at unfair advantage. Wrong forum though, should perhaps go to Seller Central.

The facts - taxes are not collected, because border agency is overwhelmed and inefficient. On personal trips I can get back with $300 stuff and 2hr abroad and they just wave me in because they are too lazy to fill the yellow sticker. Then when they actually send me to secondary, they just put everything under generic MISC code, because they are too lazy to itemize.

What Pierre is calling for is border agency reform. This is 21st century, people would be happy to itemize and self-declare even on their cell phones, but CBSA thinks we are too stoopid and we need a broker to declare out own stuff. Maybe CBSA is good at protecting borders, but they really lack in bookeeping.

dipmicro · ‎10-11-2013

To add to my post.

No I am not "too happy to pay tax", but when it actually comes to paying tax at the border, they are extremely inefficient, you can spend 1-2hrs at the border just to declare and pay.

Postal imports the same, they are supposed to deliver door to door, but you need to go to PO to pay taxes plus post office and couriers are milking you as well.

And don't get me started on the brokers. Everyone can be their own agent, but CBSA will only open the billing account for the licensed broker so you can only pay them at their own locations. Something that any utility company can do, CBSA cannot. Shame.

pierrelebel · ‎10-11-2013

"should perhaps go to Seller Central."

Since most of the discussion over the last six months on import tax (GST/HST) took place on the "Buyer Central" board, I decided to post it here. It appeared to be the appropriate location.

Once again, the message to my MP is a request for factual information; it should not be taken out of context. We have seen a lot of guesswork and assumption on these threads and it would be helpful to deal with facts.

This is why I urge other readers to get in touch with their MP and obtain whatever information they can provide. Let's be honest: having eBay buyers and sellers obtain information will not change government policies or procedures.

Before anyone can suggest or recommend reforms, we all need to know what the situation really is. Let us not be afraid of the information. Knowledge does not hurt anyone, quite the contrary.

conkira · ‎10-12-2013

Sounds to me like you are a retailer who does not like the fact that we can order products for ourselves at half the price!! I understand your frustration re the taxes but i would say for mayself i order many items but do not think my orders have ever been over the $20 and with free shipping how can i go wrong?? Everyone is trying to save where they can. I am sorry if it is hurting your bottom line but that is life.

pierrelebel · ‎10-12-2013

"...you are a retailer"

???

I am retired. There is nothing personal in this thread.

"we can order products for ourselves at half the price..."

That is great and you should continue to buy at the lowest price possible. This thread has nothing to do with that. Just trying to get factual information from the Canadian government on the amount of postal imports coming into Canada, the amount of tax collected and reasons why so many taxable parcels are not assessed as they should. Nothing here to suggest you or anyone should stop buying outside the country to save 50%.

"do not think my orders have ever been over the $20"

Those postal imports are tax exempt and should continue to be. I do not see any problem here.

bb_cool_stuff · ‎10-12-2013

Best not to make any assumptions in regards to a seller/poster without knowing their background.

You could end just end up making yourself look silly & it will hurt your credibility on the boards.

i*m-still-here · ‎10-18-2013

Yes, so now how did that work out for you?

Did you get the information you needed Pierre?

i*m-still-here · ‎10-18-2013

Pierre: Did they get back to you with the statistics you needed from them?

i*m-still-here · ‎10-19-2013

Pierre, I'll check back in a week or so....... but do please let use know what the stats are when your PM gets back to you.

I would love to know as well.

Good Work!

i*m-still-here · ‎11-06-2013

I'm also curious about this so let's bump it too.

Any results?

pierrelebel · ‎11-06-2013

Nothing yet.

I guess these guys have been busy in Ottawa with the Senate scandal, then their convention in Calgary.

Constituent questions and concerns are never their first priority.

i*m-still-here · ‎11-06-2013

Thank You.

Keep us posted.

femmefan1946 · ‎11-07-2013

Not every MP is a Conservative. Mine is NDP.

Opposition MPs ask questions like this every day. Not all of them show up in Question Period.

However, the information may be subject to ATIP. And that takes a long, long time, both the collect the information and then to redact the parts that fall under the security guidelines.

I wouldn'\t expect an answer in less than six months, perhaps even a year.

pierrelebel · ‎11-07-2013

"he information may be subject to ATIP."

That is my understanding from the local office.

pierrelebel · ‎12-09-2013

Nearly two months later, I have yet to receive a reply from my member of Parliament (other than the original receipt acknowledgement).

So, this morning, I sent the same request for information to both major opposition parties asking for their assistance in getting answers to the questions.

Time will tell.