Taxing Donations

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Here’s another case of ridiculous taxation policy: I was just informed by the Ontario Ministry of Revenue that I have to charge PST (provincial sales tax) on every Tail Wags product donation. In other words, every time I donate a helmet cover to a charity, silent auction or blog site for review, I have to charge tax on the full value of the product even though the product was provided free of charge. At first I thought I misunderstood the auditor. “You’ve got to be kidding? Shouldn’t you be encouraging and supporting donations rather than creating deterrents?” My complaints fell on deaf ears. As a small business owner, I receive several donation requests per week. Although I can’t respond to every one, I try to support charitable events because I know charities count on the generosity of individuals and businesses to survive. But the government will hurt the spirit of altruism through this shortsighted taxation policy. Needless to say, I challenged the auditor on the logic of this taxation policy. Does this mean that every time I voluntarily shovel the snow for my elderly neighbours, I have to charge PST on the value of this service? As well, does my friend who has worked as a volunteer for the past year organizing the upcoming CDI (Children’s Development Institute) fundraiser have to submit taxes on the value of her time this past year? After all, PST is supposed to be evenly applied to products and services. Even the auditor agreed this would be ridiculous but, of course, she reminded me that she doesn’t create the taxation policies. Please help spread the word concerning this outrageous money grab on the part of our government. If you agree that this taxation policy is wrong, please share this blog post.

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  • Blew me away too! It’s particularly upsetting when you see the way in which our tax dollars are wasted i.e. MP’s who spend taxpayer dollars on $190.00 coffee makers for their offices (you can buy one for under $40.00 at Costco) and iPads (I can’t afford one for myself but my tax dollars are providing them for MP’s).

    Karyn Climans on
  • I have never heard of that and can honestly say that I am appaled. Who the heck makes this stuff up? And who’s wallets are we stuffing?

    Kimberly on

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