Re: Tax Requirements Validation- Canada Go-Live Prep

Hey Team,

We just need to confirm for Quebec. @Steve Koyanagi
<skoyanagi@thekey.com> @Timothy
Thomas <tt@thekey.com> I would assume that QST is a part of the PST exempt
in provinces? As of right now in Quebec, we are charging QST to our MTL
clients.

All other sites are set up correctly based on Steve's email regarding
provincial taxes on homecare services.

Thank you,

On Mon, Jul 10, 2023 at 2:53 PM Ali Malik <ali.malik@thekey.com> wrote:

> @Timothy Thomas <tt@thekey.com> Would PST fall under the same category as
> QST or would we treat it different. Its the same provincial tax but not
> sure if it applies in this scenaio ?
>
> thanks,
>
> On Mon, Jul 10, 2023 at 2:49 PM Timothy Thomas <tt@thekey.com> wrote:
>
>> Wow, that's news to me on the PST / QST.
>>
>> Can you please confirm what the applicable rates are now for private pay
>> clients in each province so that I can prep the ops team.
>>
>> On Mon, Jul 10, 2023 at 2:46 PM Ali Malik <ali.malik@thekey.com> wrote:
>>
>>> Hey Steve,
>>>
>>> Thank you for this update. So the setups we have look to be correct then.
>>>
>>> All sites are PST exempt besides Montreal (QST+GST) &
>>> Toronto/Waterloo/Oakville (HST)
>>>
>>> And yes , the ops team has a process set in place of waiving tax on
>>> clients that receive government funding.
>>>
>>> Thank you,
>>>
>>>
>>>
>>> On Mon, Jul 10, 2023 at 2:41 PM Steve Koyanagi <skoyanagi@thekey.com>
>>> wrote:
>>>
>>>> Confirming that PST should not be collected. In reviewing the list of
>>>> taxable services general home care services provided to seniors are not
>>>> taxable for PST purposes. Even if the home care services are medical in
>>>> nature, they would still not be taxable for PST services.
>>>>
>>>>
>>>> Elizabeth/team, can you provide some background related to tax
>>>> treatment when the home care services are government funded (i.e. either
>>>> the government pays TheKey for the supply of the services to the individual
>>>> seniors or the individual receives funding from the government for the
>>>> purpose of acquiring the services from TheKey) as generally speaking they
>>>> are exempted from GST/HST and QST purposes.
>>>>
>>>> Looks like there's a call scheduled later this week so we can discuss
>>>> then. Thanks.
>>>>
>>>> On Fri, Jul 7, 2023 at 9:17 AM Frank Liu <fliu@thekey.com> wrote:
>>>>
>>>>> Elizabeth,
>>>>> We can always adjust the tax rates appropriately once we get the the
>>>>> final decision so we can set up with GST 5 for now.  Did we get
>>>>> confirmation regarding the footer itself yet?  -Frank
>>>>>
>>>>> On Thu, Jul 6, 2023 at 6:48 AM Ali Malik <ali.malik@thekey.com> wrote:
>>>>>
>>>>>> Hey Steve,
>>>>>>
>>>>>> For 4 sites we are charging the full sales tax in their given
>>>>>> province: Toronto, Waterloo, Oakville and Montreal.
>>>>>>
>>>>>> The remaining 3 sites, we are charging only 5% which appears to be
>>>>>> the GST. It looks like the PST is being waived.
>>>>>>
>>>>>> This is how it was set up under the agency settings for these sites
>>>>>> by the owner/operators.
>>>>>>
>>>>>> We just need to know for those remaining 3 sites, is it a policy that
>>>>>> we cannot charge PST due to because we are not providing healthcare
>>>>>> services?
>>>>>>
>>>>>> thank you
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>> On Thu, Jul 6, 2023 at 8:46 AM <eclark@thekey.com> wrote:
>>>>>>
>>>>>>> @Ali Malik <ali.malik@thekey.com>?
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *From:* Steve Koyanagi <skoyanagi@thekey.com>
>>>>>>> *Sent:* Friday, June 30, 2023 9:34 AM
>>>>>>> *To:* eclark@thekey.com
>>>>>>> *Cc:* Ali Malik <ali.malik@thekey.com>; Frank Liu <fliu@thekey.com>;
>>>>>>> Timothy Thomas <tt@thekey.com>; Troy Riha <troy.riha@thekey.com>
>>>>>>> *Subject:* Re: Tax Requirements Validation- Canada Go-Live Prep
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Elizabeth, based on the word doc below is what appears we're
>>>>>>> charging, which is longer than the list in your email? Can you clarify?
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> BC - GST 5%
>>>>>>>
>>>>>>> Winnipeg - GST 5%
>>>>>>>
>>>>>>> Ontario - GST 13%
>>>>>>>
>>>>>>> Alberta - GST 5%
>>>>>>>
>>>>>>> Quebec - GST 5%; QST 9.98%
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> On Fri, Jun 30, 2023 at 9:25 AM <eclark@thekey.com> wrote:
>>>>>>>
>>>>>>> Attached are screenshots of what is charged today (from agency
>>>>>>> settings), aligns with the below.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Elizabeth Clark
>>>>>>>
>>>>>>> *Director, CI & Transformation*
>>>>>>>
>>>>>>> *Long Term Care Insurance, Onboarding*
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *TheKey*
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *From:* Steve Koyanagi <skoyanagi@thekey.com>
>>>>>>> *Sent:* Friday, June 30, 2023 8:31 AM
>>>>>>> *To:* eclark@thekey.com
>>>>>>> *Cc:* Ali Malik <ali.malik@thekey.com>; Frank Liu <fliu@thekey.com>;
>>>>>>> Timothy Thomas <tt@thekey.com>; Troy Riha <troy.riha@thekey.com>
>>>>>>> *Subject:* Re: Tax Requirements Validation- Canada Go-Live Prep
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Thanks; Tim/Ali, please confirm the below is a comprehensive list of
>>>>>>> taxes being charged to clients in all provinces when you have a moment next
>>>>>>> week and we can go from there.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> On Fri, Jun 30, 2023 at 5:31 AM <eclark@thekey.com> wrote:
>>>>>>>
>>>>>>> Hi Steve-
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> What we charge in each province in question is below however, we’re
>>>>>>> not 100% confident this is accurate. Both Tim & Ali are out until Monday so
>>>>>>> we will have to wait on them to reply with any more context required if
>>>>>>> this is not sufficient.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>    - *Steve*- Need legal confirmation of alternate agency settings
>>>>>>>    below are appropriate from a client taxation perspective.
>>>>>>>
>>>>>>>
>>>>>>>    - Vancouver- Currently only charging GST 5%
>>>>>>>       - Calgary- Currently only charging GST 5%
>>>>>>>       - Winnipeg- Currently only charging GST 5%
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Elizabeth Clark
>>>>>>>
>>>>>>> *Director, CI & Transformation*
>>>>>>>
>>>>>>> *Long Term Care Insurance, Onboarding*
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *TheKey*
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *From:* Steve Koyanagi <skoyanagi@thekey.com>
>>>>>>> *Sent:* Thursday, June 29, 2023 2:24 PM
>>>>>>> *To:* eclark@thekey.com
>>>>>>> *Cc:* Ali Malik <ali.malik@thekey.com>; Frank Liu <fliu@thekey.com>;
>>>>>>> Timothy Thomas <tt@thekey.com>; Troy Riha <troy.riha@thekey.com>
>>>>>>> *Subject:* Re: Tax Requirements Validation- Canada Go-Live Prep
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Is there a summary of what taxes (HST/GST/PST/QST) are charged in
>>>>>>> each province where we operate? It will help simplify the review process
>>>>>>> for Canadian counsel.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> If/when taxes are charged, the invoices should include the
>>>>>>> applicable tax account info.
>>>>>>>
>>>>>>>
>>>>>>> Also note that due to the upcoming holiday there may be a delay in
>>>>>>> response from Canadian counsel but I'll see how fast we can get it.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> On Thu, Jun 29, 2023 at 1:21 PM <eclark@thekey.com> wrote:
>>>>>>>
>>>>>>> Ali and Tim would like formal review and sign off, they’re our
>>>>>>> sounding board for all things finance today so I think seeking confirmation
>>>>>>> from CAD counsel makes sense here. These settings were configured at the
>>>>>>> time of acquisition so they could have been valid then, but arent now, etc.
>>>>>>> Thanks for checking.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *From:* Steve Koyanagi <skoyanagi@thekey.com>
>>>>>>> *Sent:* Thursday, June 29, 2023 1:13 PM
>>>>>>> *To:* eclark@thekey.com
>>>>>>> *Cc:* Ali Malik <ali.malik@thekey.com>; Frank Liu <fliu@thekey.com>;
>>>>>>> Timothy Thomas <tt@thekey.com>; Troy Riha <troy.riha@thekey.com>
>>>>>>> *Subject:* Re: Tax Requirements Validation- Canada Go-Live Prep
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Elizabeth, do we have a Canadian finance/accounting vendor that can
>>>>>>> answer the tax related items assigned to me below? If not, I can solicit
>>>>>>> advice from our Canadian counsel, but wanted to check if finance has
>>>>>>> another vendor we can ask first.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Let me know.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> On Thu, Jun 29, 2023 at 1:09 PM <eclark@thekey.com> wrote:
>>>>>>>
>>>>>>> Hello Everyone-
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Thank you for your time today. Below are the notes and action items
>>>>>>> from our call today.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *Notes:*
>>>>>>>
>>>>>>> *On Boarding: *
>>>>>>>
>>>>>>> CSM/CSL teams’ own determination if clients should be charged tax
>>>>>>> for all agencies below. If charging tax is required, the “charge tax”
>>>>>>> button will be checked on the client record in ClearCare. This triggers
>>>>>>> taxes from that point forward only. Should we need to back bill any client
>>>>>>> these taxes, CSM/CSL team owns emailing Billiing@TheKey.Com the
>>>>>>> request to adjust past billing.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *Action Items:*
>>>>>>>
>>>>>>>    - *Frank *to deliver Requirement to Appwrap for Montreal-
>>>>>>>    Required to display our Agency Permit on the footer of the invoice. This
>>>>>>>    can be hard coded, does not need to change at a client level. Every invoice
>>>>>>>    should have this permit number displayed. “Numero AP-2000870”
>>>>>>>    - *Frank *to deliver Requirement to Appwrap for Montreal-
>>>>>>>    Required to break out 2 tax types, GST 5% & QST 9.975%, individually under
>>>>>>>    the sub-total of the invoice. Order of display and example shown below.
>>>>>>>
>>>>>>>
>>>>>>>    - Remove “HST” verbiage.
>>>>>>>       - This will require an update to the Montreal Invoice
>>>>>>>       Template to have 2 tax types broken out/calculated separately.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Current State Invoice:
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Future State Placement:
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>    - *Ali *to send list of Montreal Clients we charge tax to today,
>>>>>>>    so we can update the client record in NS before we send our 1st
>>>>>>>    NS invoice. Frank & Elizabeth will determine w/Appwrap, the best way to
>>>>>>>    make this one-time update.
>>>>>>>    - *Frank *to deliver Requirement to Appwrap Oakville/Waterloo-
>>>>>>>    HST 13%
>>>>>>>    - *Steve*- Need legal confirmation of alternate agency settings
>>>>>>>    below are appropriate from a client taxation perspective.
>>>>>>>
>>>>>>>
>>>>>>>    - Vancouver- Currently only charging GST 5%
>>>>>>>       - Calgary- Currently only charging GST 5%
>>>>>>>       - Winnipeg- Currently only charging GST 5%
>>>>>>>
>>>>>>>
>>>>>>>    - Question on above items, should we also be charging PST?
>>>>>>>
>>>>>>>
>>>>>>>    - *Steve*- Can you please confirm/deny we are required to add
>>>>>>>    these tax codes to the footer of our invoices?
>>>>>>>
>>>>>>> Thank you!
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Elizabeth Clark
>>>>>>>
>>>>>>> *Director, CI & Transformation*
>>>>>>>
>>>>>>> *Long Term Care Insurance, Onboarding*
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> *TheKey*
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>
>>>>>> --
>>>>>> *Ali Malik*
>>>>>> Manager - Financial Operations
>>>>>>
>>>>>>
>>>>>
>>>>> --
>>>>> Frank Liu
>>>>> * Please note my email has changed: *
>>>>> fliu@thekey.com <https://brand.thekey.com/esg/fliu@thekey.com>
>>>>> +1-650-996-9107
>>>>> TheKey.com <https://www.thekey.com/>
>>>>> [image: TheKey] <https://homecareassistance.com/>
>>>>>
>>>>
>>>
>>> --
>>> *Ali Malik*
>>> Manager - Financial Operations
>>>
>>>
>>
>> --
>> Tim Thomas
>> Head of Canada Division
>> *Please note my email has changed:*
>> tt@TheKey.com <tt@thekey.com>
>> (514) 591-9387
>> TheKey.ca <https://www.thekey.ca/>
>> [image: TheKey] <https://www.thekey.com/>
>>
>
>
> --
> *Ali Malik*
> Manager - Financial Operations
>
>

-- 
*Ali Malik*
Manager - Financial Operations