GST and renting Farm Land

[rockpile]

Is anyone renting farmland or renting out farmland
and paying GST? And then claiming it back through an
ITC as the tenant? I've looked for one example where a
landowner has to collect GST but the tenant can't
reclaim it and I can't find a single case. This seems like
just an in and out scheme with one consequence.
Taxpayers pay for someone to process the payment
and then pay someone to process the rebate. Am I
wrong here or is this not a total waste of time and
money? How do we fix it?

[nicolaas]

We now ask for a GST number before we pay it for land.

[food4u]

Cash rent, yes---- crop share,no according
to my info...

[sumdumguy]

Know what you mean, it is a waste, for sure.
Same as Canaryseed. Kinda like chasing your
tail, eh?

[wilagro]

Blame it on that !@#$% Mulroney who cursed us with that !@#$% TAX which nobody wanted. There is enough vexation in life and farming without that !@#$% bull**** imposed on us.

[FarmRanger]

Increase the dosage willy.

I'm pretty sure that if your landlord isn't registered
for GST then he can't charge you GST.

[sumdumguy]

GST is just federal welfare. GST is just a way to
tax the. Consumer and give it to low income
earners. April, welfare recipients will get their
next GST cheque for $1000 or so. One way to
fund Social Services and make them file tax.

[Burbert]

F all Comedian taxis. Framers are feeding
the world, eh! Heil Harper, F Ritz!!!

[TOM4CWB]

FarmRanger,

I agree... if the landlord is NOT registered for GST...
why would anyone pay it?

[FarmRanger]

The GST was brought in to replace the 13.5% MST (Manufacturers' Sales Tax). The MST was a regressive tax that made our exports more expensive and made Canadian manufacturers less able to compete with foreign manufacturers.

Scrapping that tax was one of the best things the Mulroney government ever did. Leftists were angry because of their chronic irrational negativity toward anything that might actually benefit their favorite scapegoat - the corporations.

[TOM4CWB]

Farmranger,

Since First Nations [Indians] are exempt... farmers
should be as well. Health care... licenses... gov services
are exempt... Insurance... a dozen donuts...

Cheers!

[Hopperbin]

Must listen to Nicolas, ask for the GST number every year. Not sure if you can check to see if it is submitted or not but I had a land lord collect it and not submit it, he actually cancelled his GST number but kept charging cause he could not produce it. Now why its just not exempted some how like on land purchases I don't know. Cause the gov't does not gain out of it, they actually lose in a few cases like this so would be in their best interest to excempt cash rent from gst. Smaller ex farmers probably the worst tax avoiders of them all.

[FarmRanger]

I hear ya Tom, I'm not sure there should ever be any exemptions based on occupation, racial profile, etc. The whole system becomes more bureaucratic and expensive with every rule and exception.

Be careful when you buy or sell land Hopper. Land purchases aren't exempt; you have to fill out paperwork that allows the vendor not to submit it and the vendee not to pay it. Without the paperwork, you might find that the seller owes and the buyer is owed GST. With the government, you won't likely get paid any interest if they owe you, but if you owe the government then interest and/or penalty may be assessed.

[Hopperbin]

Ranger that does not make sense, the vender cannot be owed, it is the Gov't and its refundable, so they don't give a rats ass about land sales.

[FarmRanger]

Doesn't have to make sense Hopper, it’s the government.

From the Gov’t website - http://www.cra-arc.gc.ca/E/pub/gi/gi-002/gi-002-e.pdf
<i>Yes, the GST/HST applies to the sale of your farmland to your neighbour regardless of whether he
chooses to use it in his farming business or for his personal use. However, if you are selling your
farmland as part of an ongoing farming business and not just selling assets, you and your neighbour may
jointly elect to have no GST/HST payable on the sale by submitting form GST44, Election Concerning the
Acquisition of a Business or Part of a Business.</i>