Just back date a bill of sale. He can probably get away with it ONCE but the CRA will catch on if you tried it twice.
Model year change overs are not price protected but it's only $20 plus all the tax difference.
I checked again this afternoon. The fact that everyone was unable to place an order into the system for a Z06 or E-Ray buy the end of 2021 and get an order number will make us by definition required to pay the luxury tax. Same thing for C9. If Morgan found a way to order a Z06 before July 28, 2022 which I believe was the first day you could order a Z06 in Canada, and order his car before the end of 2021 to be eligible, I want to hear about it as I am in the same position with my deposit!
Scotty, let me know if he continues to get away with not paying the luxury tax after the government audits his deal and looks for his original bill of sale on a car that couldn't be ordered in 2021. I put a $2000 deposit down on mine in May 2021 and have been sold I am out of luck because of the rules.
The answer is No. Your deposit would have to have been in 2021 and at that point you couldn't order the car to prove that you had an order already in the system.
Were they able to actually order the Bronco Raptor in 2021 and enter the vehicle into the system? If they could they are correct no LT is payable. If they couldn't order that model vehicle at the time, my understanding is that is where the problem is.
Nope. Bronco was not able to be "ordered". The CRA was satisfied with the VISA slip and BOS dates lining up.
Hey Scott. Was just curious if you had a chance to talk with Morgan about how he is or thinks he can keep from paying the Luxury tax. Not that it affects me, but I am sure others could use this information like @GCrone who placed a deposit Sept 2021 for his Stingray. There have been many that have not been so lucky in getting around it. It would be great to help others if he has insight as a dealer.
Morgan was a no show at our the CWO Corvette club event on Saturday. GCrone should be fine, as in 2021 you could put an order for the Stingray into the system and generate a bill of sale with an order number. Along with his time stamped deposit in 2021, he can avoid paying the luxury tax.
I will see what I can do to make the show. I had reached out to Morgan a month and a half ago regarding when the show was being hosted, but I never did get a reply from him. I will let you know if I can swing it.
I don't this worked or is going to work. I checked with my Tax guy and the CRA and it is based on the date of Manufacture (see below, from the CRA web site)
You know they will as the CRA is very tight on getting their money and I don't think a dealer will chance them losing something or come under a big audit of the dealership.
Here's the response from a GM dealer. To the CRA what you are describing here is fraud. Yes, there is a discount on the MSRP of a vehicle if you qualify for Preferred Pricing and your company is on the list, like TD Bank for example. Your discount will be removed from MSRP and luxury tax will then be calculated on the sale price of the vehicle, plus freight, dealer admin fees and extended warranty. Trades don't come into effect with regards to luxury tax. Dealers are required to show an ACV (actual cash value) of your trade as they get audited by GM every two years. After that they get audited by CRA. No General Manager would sign off on your idea as it will get them in trouble with the local auto authority (in Ontario OMVIC) and corporate. There is one dealer in Ontario that is currently being audited by GM and by doing things that don't comply with corporate guidelines, looks like the will be paying a $400,000-$500,000 fine back to GM for doing this sort of thing before the CRA comes in.
