How would taxes work..

[Kobe]

Lets say my buddy wants to buy a car from Calgary but he lives in Quebec, and they have a provincial sales tax, which I'm assuming he would have to pay if he imported a car back to Quebec..

Could I buy the car from the dealership under my name in Calgary and only pay the 5% GST on it and then sell it to him for a fraction of the cost so he wouldn't have to a large precentage of tax in quebec?

What if I got the car privately and there was no GST, could I sell it to him for super cheap so he could avoid most of the PST?

Thanks

[UndrgroundRider]

Are you sure her would have to pay PST?

I don't know the answer to your specific question, but I do know that for other stuff, if you ever get audited, they can use the fair market value instead of the sale price.

[atgilchrist]

I think that could work, but he would also have to do the OOP inspection and a few other costs that may cancel out any benefits, I guess it depends on the total cost of the vehicle.

[Supa Dexta]

If its like NS, you have to pay the tax when you register it.. As many times as the car is bought and sold... Every time... And unless you have it appraised to back up a low claimed value, they'll go by the book.

[Masked Bandit]

Originally posted by Supa Dexta
If its like NS, you have to pay the tax when you register it.. As many times as the car is bought and sold... Every time... And unless you have it appraised to back up a low claimed value, they'll go by the book.

Same deal in Saskatchewan. And I can't see the Quebec government missing a chance to tax something.

[Jlude]

Originally posted by Supa Dexta
If its like NS, you have to pay the tax when you register it.. As many times as the car is bought and sold... Every time... And unless you have it appraised to back up a low claimed value, they'll go by the book.

It's the same in N.B. as well... and I believe Quebec follows the same rules.

[Redlyne_mr2]

Originally posted by Jlude


It's the same in N.B. as well... and I believe Quebec follows the same rules.
Basically any province that has PST follows those rules.

[5G_celica]

If it's the same as BC's pst then they don't go by the value of the cars, they go by bill of sale.

if the value is way below the book value then they make you sign a statment why it's so cheap. "mechanical problems" usually is enough excuse.

also if you guys want you can sign the bill of sale as "gift" and your buddy won't pay any taxes. but that would be unlawful.. hhehehe