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Corvette
C8 Forum
2024 Ordering Strategy to save on both taxes
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<blockquote data-quote="Mr.Corvette" data-source="post: 323562" data-attributes="member: 6760"><p>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.</p><p>Dealers have to charge luxury tax on the bottom line price before trades and HST because HST is also charged on luxury tax. </p><p>It's a great idea you have but doing what you suggest could cost the dealership it's franchise agreement I was told and will certainly be caught by a GM audit creating steep fines from GM.</p></blockquote><p></p>
[QUOTE="Mr.Corvette, post: 323562, member: 6760"] 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. Dealers have to charge luxury tax on the bottom line price before trades and HST because HST is also charged on luxury tax. It's a great idea you have but doing what you suggest could cost the dealership it's franchise agreement I was told and will certainly be caught by a GM audit creating steep fines from GM. [/QUOTE]
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Corvette
C8 Forum
2024 Ordering Strategy to save on both taxes
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