A free-gustst calculator for Canada that can calculate the cost of gold and other precious metals, as well as the GST, is on the rise, thanks to a recent surge in demand for it by online traders.
In addition to Canada’s GST, foreign buyers can also purchase gold and silver coins, jewelry and other items at local stores, but they have to pay the GST in the first place.
That is because the GST does not apply to the costlier items.
In this case, it would be $5,000 in Canada to buy $5 million worth of gold bullion coins, for example.
To make matters worse, Canada’s foreign buyers are also paying taxes on gold bullions that they are buying from local producers of gold, like the gold producers of the world’s most popular gold coin, the British Royal Mint, which also exports its bullion to the United States.
It’s a complicated tax system.
It also isn’t fair to Canadian buyers because their government taxes the purchase of the bullion instead of the purchase price.
The Canadian government says it is trying to address this issue with its new gold and precious metal pricing system, called GST-E, which is designed to give foreign buyers an incentive to purchase gold in a transparent and fair way.
In its first two months, the government expects to collect $8.8 billion from foreign buyers in GST-e.
But, as of Tuesday, it didn’t provide an estimate of how much GST-ed gold would be collected in that time period.
“That is an incredibly difficult estimate to come up with, because that’s a huge amount of money,” said Mark McArdle, an economist at the Conference Board of Canada.
“We have to do a very good job in terms of pricing gold in terms that are fair, that we know are fair to Canadians and also to Canadian investors.”
It would be a major victory for Canada’s tax collectors, but it would also raise questions about the fairness of the GST system.
“The biggest concern is the impact of the tax system on Canadian investors who are trying to take advantage of a foreign buyer’s purchase of gold in this country, and who then end up paying the tax that they’re getting,” said Ian Stewart, the co-director of the Centre for Global Governance at Simon Fraser University.GST-E is the latest initiative in a series of reforms to the GST since the Conservatives took power in 2006.
The government also created a new tax credit to help low-income Canadians pay for the costs of buying gold bullings from overseas producers.
It expanded the foreign buyer credit for gold bullations to cover silver bullion and the Canadian producer credit for precious metals to include the Canadian industry.
And it made it easier for people to transfer gold bullional coins from one buyer to another, which would be an effective way to save money.
It also introduced a new gold buyer credit, allowing the government to collect the full amount of the buyer’s tax liability on purchases made through a gold-only trading scheme.
It took the government a few years to get these reforms through parliament, and it’s been a tough slog for Canadians.
They say the new tax credits make the process easier for foreigners, but some critics say it could also create new opportunities for tax evasion.
“I think it’s a very tough system,” said Stewart.
“The whole point of this is that it’s designed to encourage Canadians to buy gold.”
A number of experts are concerned that the new system will create new barriers to buying gold from Canadian producers.
In the case of gold sold in Canada, the Canadian government already collects a large portion of the price of the gold, which they sell to local gold buyers.
And if there are no buyers for a gold bullage, the GST doesn’t apply.
“They should be charging the full tax that is levied on the price that they pay for a lot of gold that they don’t need to sell to anybody,” said McArthle.
He also worries that some Canadian buyers may not have a good reason to pay taxes on the gold they buy.
“A lot of these people have absolutely no reason to be there and have bought gold with their parents,” he said.
It may be a long wait for Canada to collect its gold revenue.
The new system is expected to take effect in 2019, but McArdole cautions that the government won’t collect its taxes until after that.
It will be an uncertain time for Canadian gold sellers, but the government is not about to let the situation get out of hand.
The Government of Canada has said that it will continue to review and update the GST-related gold pricing system as the program evolves.