Tirade on Trudeau Liberal's GST Holiday Headache

Just another example of Liberal incompetence and ineptness

So the Liberals, with the help of the hapless NDP managed to get the GST holiday tax break bill passed in the House of Commons. Oh what a windfall it will be for Canadians as Christmas approaches. The Liberals are sure Canadians will be getting down on their hands and knees to worship fully give thanks to them for this wonderful gift. Oh but I jest, because this tax break is just another example of the utter stupidity and ineptness of this government. If they can do anything to make things more complicated, more difficult, more chaotic and more burdensome for Canadians and Canadian businesses they manage it, either by design or happenstance.

One has to ask, what genius in the Liberal party brain trust – and I use that term loosely – drew up the list of what the GST should or should not be removed from – for two short months? Have a look at the details and ask yourself, does this make any sense at all? Is there any rhyme or reason to it at all? Well, Tristan Hopper, at the National Post, did a quick review of the list. I have gone through his list and paraphrased some of it and added a few more of my own observations. And I have come to the conclusion the answer is no it makes no sense. Is anyone surprised when it comes to the Trudeau Liberals and any of their hair brained schemes from the Housing Acceleration Fund that hasn't built a single house, to the School Lunch Program which has yet to feed a single kid?

And just to add to the confusion and burden they have put on retailers to supposedly curry favour with Canadians — here’s the message given to business owners in the Tax Bulletin from Revenue Canada.

“Accordingly, businesses need to carefully examine the definitions to correctly determine if a good they sell is actually subject to this temporary exemption to ensure that they are fully compliant with this proposed exemption during the effective period.

So it’s on them, not the government to figure all this out.

Collectibles versus Toys

Pokeman Cards versus Hockey Cards

This is a fun one. Apparently if you buy a hockey card you pay tax on it because it is considered a ‘collectible’. However, you buy a Pokeman card you don’t, because it is considered a ‘game card’ and therefore tax exempt, because games are exempt from the tax. Yet, Pokeman cards are also collectibles. Toy dolls and figurines are even more complicated. For example, would a Star Wars figurine/doll be considered a toy or a collectible? Who knows, but stores and gift shops have less than two weeks to figure that out. Otherwise they may have to worry about clerks arguing with customers about whether something they are buying is tax free or not — to determine if it’s for a kid or an adult. Good luck!

Christmas Tree versus Decorations

Christmas tree or ornamental trees

While it is unlikely that there are any Canadians who haven’t bought a Christmas tree before the middle of December, there may be some problems encountered during the after Christmas sales on artificial trees which would still be subject to the tax break, while holiday decorations were not. The question being when is a Christmas tree and Christmas tree or simply a decoration. Would small decorative display trees be considered a ‘Christmas’ tree or a decoration. This again will be left for retailers to determine and again perhaps have to haggle with customers at points of sale. Always fun during the post Christmas sales rush.

Only Some Lego is Tax Free

Boarding of the Tantive IV or Tantive IV

Here again is where one runs into the plaything versus collectible conundrum. For example, the Star Wars Lego set called ‘The Boarding of the Tantive IV’ which is marketed for children as building set is and is not taxable. However, another set called ‘The Tantive IV’ is marketed for adults, although it too is a building set, but is intended for display, not for play, and therefore taxable. Wrap your head around that one.

Video Games – Online versus Discs?

Video games such as the $960 PlayStation Pro 5 are tax free which will amount to a savings of almost $150 – so quite a bargain there. I am sure there will be a run on them starting December 15th. However, this considerable saving can only be realized by buying the actual physical discs. Downloadable or online only games do not get the exemption. Here is where it gets even crazier. And here I quote Mr. Hopper because I am not an expert on video games: “You pay the online tax, “despite the fact that 70% of all console games are purchased online via download, whether it’s for PlayStation, Xbox or the Nintendo Switch. If you play computer games on an actual computer, phone or tablet – you will pay the tax. Even if you pretend it's the 1990s and buy a PC game in physical form, you will still pay GST because you’re playing it on a computer instead of a qualifying video-game console.” Clear as mud, right?

Magazines Tax Free, and Not Tax Free

National Inquirer or The Globe and Mail?

Under the guidelines for ‘printed books’ magazines technically seem to qualify, but only if they are delivered by subscription and – get this – cannot feature advertising in ‘more than five percent of printed space’. When it comes to newspapers, they are tax exempt – however, retailers will have the headache of trying to figure out on their own, whether something is a newspaper or a magazine at their point of sale. For example, is the National Inquirer a newspaper or a magazine?

Snacks and Junk Food

This one appears to be the easiest, pretty much all junk food is tax free – chips, pop, cookies, chocolate bars, candy, baked goods, as well as all restaurant foods, dine in, take-out or delivery. Except, if you buy any of these goods from a vending machine. I guess it was just too tough to expect business to reprogram their vending machines while also having to reprogram their point of sale and accounting systems. How very thoughtful of the Liberals.

Children's Clothing

While virtually all children’s clothing will be exempt, there are some items that are not. This would include any specialized clothing and footwear designed for sports or recreational activities. The examples given include wet-suits, soccer cleats, bowling shoes, skates, ski boots and dance shoes. That seems pretty straight forward, but what about bathing suits or running suits, and items such as ski pants and jackets for children that might simply be winter wear, but purchased at a specialty store. More headache for sales clerks and business owners.

Booze versus Spirits

Beer, wine, cider and sake (including fortified) that are 22.9 percent alcohol by volume or less. This would then include ports and sherries as most have less than the 22.9 percent alcohol content – however it is not specified. Other exemptions include spirit coolers (i.e. vodka soda), and premixed alcoholic beverages that are 7 percent or less. Hard liquor – or spirits, such as rum, gin, rye or scotch will still be subject to tax. That, it would seem, is pretty straight forward.

But here is a crazy one to try and figure out… Tax on Musical Soundtracks or Not?

Original cast...no tax, The Stage Concert, tax.

This is the kind of minutia that would make someone want to scream. According to the guidelines, when it comes to buying soundtracks if you buy a CD or cassette of the recording of “a physical performance of a published play,” say, for example an original performance of Jesus Christ Superstar or Les Misérables, it is tax exempt. On the other hand the tax exemption does not apply to “recordings of musical scores”, which means if you bought something like the CD titled, ‘Les Misérables: The Staged Concert’, it would be subject to tax, even though it is essentially the same recording, but not an ‘original performance’ of the actual play.

Canadian taxpayers should certainly take advantage of every tax break offered to them by a government that has essentially taxed them to the breaking point and is planning on continuing to do so with a new hefty carbon tax hike slated for the spring. But this complex and labour intensive nightmare is just another example of Liberal’s habit not looking before they leap which usually results in more waste and squandering of time and money. By way of example headlines today note that the Auditor General has found that Liberals gave $3.5 billion in COVID business loans to ineligible recipients. Regarding these ‘loans’, one must remember that recipients were only required to payback two thirds of the money loaned to them. Does anyone really think the government will get any of that money back?

So on that note, I wish all a Merry Christmas with another special wish and that is we can bid farewell to this wasteful failed government and its failed leader in 2025.