Avatar

Wrongful taxation in Canada

by Casa Sandbar ⌂ @, Monday, November 15, 2021, 17:21 (13 days ago)

For those who stayed in a mandatory 3-day Hotel quarantine when entering Canada between February and July 2021....you were wrongfully taxed and are owed around $100 CAN. We were refunded $77.61 and believe the Hotel Lo Soleil in Vancouver still owes us another $20 or so. It’s dry reading, but here is the explanation.

The entire “package” cost included the room, meals, gratuities, paying for the covid test at the airport, paying for the covid test on day 8 of your quarantine, and the extra security at the Hotel. Hotels totaled everything up and charged taxes on the package price. That works for the GST which is a standard 5%.

Each market (ours was Vancouver) has a Destination Marketing Fee (DMF). That should only be applied to the room cost and in Greater Vancouver its 1.5%. The DMF does not apply to any of the other package items.

In B.C. the Provincial Sales Tax (PST) is 8% but the PST on short term accommodations in B.C. is 11%.

The built-in gratuities on your food should have no taxes.

Contact the Hotel you stayed at and ask for an itemized breakdown of your bill. Then ask for the adjustments on the taxes to be refunded. If you know of other chat groups then copy and paste this post. There are tens of thousands of people who are owed this money.

Here is a simplified example of how the taxes were wrongfully applied assuming a $2,000 package:

Package Price $2,000 + (DMF 1.5% $30) + (GST 5% $100) + (PST 11% $220) = $2,350 TOTAL

but it should have been calculated like this:

Room $1,000 + (DMF 1.5% $15) + (GST 5% $50) + (PST 11% $110) = $1,175
Meals/Security/Tests/etc $900 + (GST 5% $45) = $945
Gratuities - $100
$1,175 + $945 + $100 = $2,220.

Difference is $130 owed in wrongfully charged taxes.

Go get it!