Automotive

Regarding HST on Private Resale of Purchased Car

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  • Dec 7th, 2011 8:49 pm
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Jr. Member
Oct 5, 2008
127 posts
7 upvotes

Regarding HST on Private Resale of Purchased Car

My colleague purchased a company truck that went on auction and resold it for a profit. He mentioned that he never paid tax on the purchased truck because he never took ownership and registration under the MTO. Instead the new owner (person who bought it off him) paid the HST when he registered it for himself.

Is this possible and is this legal? I would not like to register the vehicle with MTO just to pay tax and then resell it.

If anyone could shed any advice on this situation it would be very helpful.

Cheers.
4 replies
Deal Fanatic
Apr 16, 2007
8134 posts
3485 upvotes
Financial District B…
protonova wrote: My colleague purchased a company truck that went on auction and resold it for a profit. He mentioned that he never paid tax on the purchased truck because he never took ownership and registration under the MTO. Instead the new owner (person who bought it off him) paid the HST when he registered it for himself.

Is this possible and is this legal? I would not like to register the vehicle with MTO just to pay tax and then resell it.

If anyone could shed any advice on this situation it would be very helpful.

Cheers.

You have just described what curbsiders do

curbsiding = indictable offense = jail time
Jr. Member
Oct 5, 2008
127 posts
7 upvotes
Took the keyword curbsiding and found our more information.

Thanks. Obviously saving 500 dollars isn't worth tax evasion.

Cheers.
Deal Fanatic
Apr 16, 2007
8134 posts
3485 upvotes
Financial District B…
yeah just google Eric Stiles from Ottawa. He was extreme, got nabbed last year, but in the end got caught flipping cars and tax evasion. 6+ years in jail and just under a million $ in fines
Deal Expert
User avatar
Nov 15, 2004
21783 posts
4903 upvotes
Toronto
This tax is utter ******** and should be avoided. I applaud these guys.

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