OTS has been working with the Canada Revenue Agency to clarify if HST should be paid on payments made to Collectors, Haulers, Processors and Registered Product Manufacturers (“RPM”). On May 4, 2012, the CRA issued a Ruling (please click on the link below to review the ruling in full) regarding the taxable status of the Incentives paid under the Used Tires Program. The Ruling states that OTS should pay HST on incentives paid to Collectors and Haulers, but not on incentives paid to Processors and RPMs. In accordance with this Ruling, OTS will begin paying HST on Collector and Hauler payments starting with the July 2012 claim period.
While OTS had hoped to resolve any outstanding GST and HST payments directly with the CRA, we have been advised that it is the obligation of the Collector and Hauler to remit the taxes, and so OTS will be required to undertake a tax account reconciliation with each Collector and Hauler individually. OTS will be in touch with individual Collectors and Haulers regarding this process, however we anticipate paying the applicable prior period GST and HST to Collectors in September 2012 and to Haulers in August 2012.
Should you have any questions please contact Ontario Tire Stewardship at 1-888-687-2202.
