Hi Tim
There seems to be a bit of disagreement as to what the payment is for. Has legal concluded on the character of the payment? Is there a clause in the client agreement that can be referred to as to what the charge relates to? I think that will drive the HST treatment and whether there is an exemption. Once you confirm the character of the payment, I will have my HST specialist review.
Thanks
Rose
From: Timothy Thomas
Sent: Monday, June 06, 2022 10:33 AM
To: Cheryl Cartwright <ccartwright@homecareassistance.com>
Cc: Ali Malik <ali.malik@mavencare.com>; Cross, Rose <rcross@bdo.ca>; Steve Darley <sdarley@homecareassistance.com>
Subject: [EXT] Re: New Invoice from Home Care Assistance
Seems to me like tax should be charged on this.
Rose, our toronto office has a client that “bought out” their caregiver from the HCA client consent agreement. The fee is $10,000. Client claims HST should not be applied see comments below. Can you advise please.
Cheryl please add any details I've missed. Thanks.
On Mon, Jun 6, 2022 at 9:36 AM Cheryl Cartwright <ccartwright@homecareassistance.com<mailto:ccartwright@homecareassistance.com>> wrote:
Hi Ali,
I am not sure but this is NOT termination or damage pay. They are simply fulfilling a contract. We will need to consult legal about this though as the client is a lawyer himself. That said, he seems to be misunderstanding what the payment is for.
Cheryl
On Mon, Jun 6, 2022 at 10:31 AM Ali Malik <ali.malik@mavencare.com<mailto:ali.malik@mavencare.com>> wrote:
Hey Guys,
Please see below email
---------- Forwarded message ---------
From: Terry and Susan Bernstein <terryandsusan@rogers.com<mailto:terryandsusan@rogers.com>>
Date: Sun, Jun 5, 2022 at 8:54 PM
Subject: Re: New Invoice from Home Care Assistance
To: <ali.malik@mavencare.com<mailto:ali.malik@mavencare.com>>
Cc: J B <jb@airdberlis.com<mailto:jb@airdberlis.com>>, Terry and Susan Bernstein <terryandsusan@rogers.com<mailto:terryandsusan@rogers.com>>
Hello Ali,
The attached invoice indicates an HST charge on the 10,000.00 amount paid by cheque. Please be advised that we have received legal advice that HST should not be charged on said amount:
"there is a special deeming rule under section 182 of the Excise Tax Act which says that where a damage or termination payment is made in respect of an agreement for the making of taxable supplies, the damage payment is deemed to be GST/HST inclusive. So there wouldn't be HST on top."
If the HST was billed to Mr. Bernstein's credit card kindly reverse the charge and forward to us a new invoice reflecting the charge of $10,000. without the additional HST.
Sincerely,
Terry
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On Tue, May 31, 2022 at 5:37 PM Susan Bernstein <susanbernstein@rogers.com<mailto:susanbernstein@rogers.com>> wrote:
---------- Forwarded message ---------
From: Ali Mailk <torontohca+c986e58744e04e6bac6c59dbce55bf38+0A@clearcaremail.ca<mailto:torontohca%2Bc986e58744e04e6bac6c59dbce55bf38%2B0A@clearcaremail.ca>>
Date: Tue., May 31, 2022, 1:46 p.m.
Subject: New Invoice from Home Care Assistance
To: <slimmingwithsusan@gmail.com<mailto:slimmingwithsusan@gmail.com>>
Greetings,
Please find attached your invoice for billing period 05/23/2022-05/29/2022.
If you have any questions, you can reach me at ali.malik@mavencare.com<mailto:ali.malik@mavencare.com> 416-488-8777.
Thank you,
Ali Mailk
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