Cell Phones

(Resolved) Subsidized phone - Sales tax on full price?

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  • Feb 7th, 2020 7:01 am
[OP]
Deal Guru
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Oct 24, 2012
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Montreal

(Resolved) Subsidized phone - Sales tax on full price?

Big edit

I'm very stupid, I redid the math and it balances out:

The way I thought was the "correct" way of billing

[ 65$ plan + 42.16$ phone - 27.17$ subsidy ] x 1.149905 (sales tax) = 91.98$


The way Fido does their billing

[ 65$ plan - 27.17$ subsidy ] x 1.149905 (sales tax) + 48.48$ (phone with tax) = 91.98$

Their calculation is a bit confusing to the clients interpreting it, but I guess it made more sense to their accounting/legal department.



/////////////////////////////
Maybe I forget about this at every renewal (hardware upgrade), but is it normal that I am charged sales taxes on the full price of the phone even when it is subsidized?


I just renewed with Fido and their pricing structure changed. Now they charge you every month to pay back the phone downpayment.

So, for the S10e certified pre-owned, the before tax price is 1,012$.
The promotion is that I get a 27.17$/month subsidy.
On the website, it says the phone would be 14.99$/month (1,012$ / 24 - 27.17$)

However, on my final bill, it says that I will be paying 21.31$ for the phone!

What they did is this:

1,012$ x 1.14975 (GST/PST) = 1,163.55$ / 24 = 48.48$ - 27.17$ subsidy = 21.31$

That feels like a cheap trick, considerig the website advertised 14.99$.
14.99$ + tax = 17.23$, so I'm paying 4.08$/month more than I anticipated.

Is this standard procedure? I feel like I might have forgotten this little cheap trick at every renewal, since I'd pay up front the taxes, if there were any.
Last edited by alkizmo on Feb 7th, 2020 6:59 am, edited 3 times in total.
2 replies
Deal Addict
Jan 13, 2014
2626 posts
1589 upvotes
Calgary
Here's what it says under More Details.
Fido Payment Program: 0% APR on approved credit with a Fido Payment Program Agreement (FPPA) and an eligible Fido mobile plan. FPPA based on full price less any down payment plus taxes (excluding promo credits, if applicable, which are applied monthly on your bill for as long as your FPPA is in place). Any down payment plus taxes is due in full upon purchase
It does seem a bit confusing so I'll let someone else confirm, but to me it does seem like they're doing exactly what they say (misleading as it may be when looking at the $14.99/month figure).
[OP]
Deal Guru
User avatar
Oct 24, 2012
11638 posts
2613 upvotes
Montreal
Devhux wrote: (misleading as it may be when looking at the $14.99/month figure).
Thanks for extracting that section, the "more details" doesn't work when my region is set to Quebec.

Anyhow I updated the main post, it wasn't misleading, I am paying the proper advertised price; their billing presentation is what's confusing.

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