Koodo Community
Question

I have been overcharged in taxes in ON

  • 17 September 2019
  • 9 replies
  • 299 views

My bill is $50 minus $15 credit for twelve months for a Total of $35 bill. The taxes for the $35 bill should be $4.55 but instead I was charged for $6.50 that is for the $50 but they cannot ever charge for something it is not billable.

Monthly and other charges $35.00 - - Total before taxes #35.00 --- Taxes $6.50 -- Total $41.50

Last month it was the same thing,
In total they are overcharging me in taxes $1.95 every month
That is totally wrong

9 replies

Userlevel 7
Badge +4
Taxes are charged before the credit since it is a credit and not a discounted price.

Koodo/Telus used to do it the other way before and they got in trouble with CRA
I still think you are doing it totally wrong because my summary in the bill say charges before taxes $35.00 so you can not charge taxes for something it’s not there
Userlevel 7
Badge +4
https://www.ctf.ca/ctfweb/EN/Newsletters/Canadian_Tax_Focus/2012/4/120407.aspx

Again it is not up to them. It was determined by CRA
Next time what you need to say to other customers is to go to the bottom of the statement where it is writing the explanation to safe time to the customer

*Credit/CR includes an amount on account of GST/HST, QST, and PST (based on the taxes levied in the province of supply).
Userlevel 7
Badge +4
it’s the same thing you charge for the full amount and them you have to refund the amount of the credit. You cannot keep the taxes for the credit you are given
You should tell CRA and the court that. Because the court says otherwise and sided with CRA. I mean there is nothing Telus can do once the court decision was made
Userlevel 5
https://www.ctf.ca/ctfweb/EN/Newsletters/Canadian_Tax_Focus/2012/4/120407.aspxAgain it is not up to them. It was determined by CRA
🙄 Did you even read what you posted here? It says TELUS charged customers taxes on the full price before the bill credit, and then wanted to double dip by getting tax credits from the CRA for giving discounts but the CRA didn't eat that.

It is up to Koodo/TELUS to decide how they deal with taxes and discounts, and they do charge more taxes than their "competitors."

Telus charged customers GST/HST on the full amount of the telephone bill before applying the billing credit.
Telus claimed input tax credits (ITCs) for the billing credit under the coupon rules (ETA paragraph 181(3)(b)), which allow a supplier to claim ITCs for the tax fraction of a coupon
However, the court concluded that the billing credit did not meet the requirements of the coupon rules: it was not a "coupon"
Telus could have issued credit notes to its customers and refunded the tax on the basis that it was erroneously charged before the billing credit was applied (ETA subsection 232(1)), although--in contrast to ITCs for the tax-included amount of the reduction--there was no direct benefit to the supplier.
Userlevel 7
Badge +4

https://www.ctf.ca/ctfweb/EN/Newsletters/Canadian_Tax_Focus/2012/4/120407.aspxAgain it is not up to them. It was determined by CRA🙄 Did you even read what you posted here? It says TELUS charged customers taxes on the full price before the bill credit, and then wanted to double dip by getting tax credits from the CRA for giving discounts but the CRA didn't eat that.

It is up to Koodo/TELUS to decide how they deal with taxes and discounts, and they do charge more taxes than their "competitors."

Telus charged customers GST/HST on the full amount of the telephone bill before applying the billing credit.
Telus claimed input tax credits (ITCs) for the billing credit under the coupon rules (ETA paragraph 181(3)(b)), which allow a supplier to claim ITCs for the tax fraction of a coupon
However, the court concluded that the billing credit did not meet the requirements of the coupon rules: it was not a "coupon"
Telus could have issued credit notes to its customers and refunded the tax on the basis that it was erroneously charged before the billing credit was applied (ETA subsection 232(1)), although--in contrast to ITCs for the tax-included amount of the reduction--there was no direct benefit to the supplier.


Except that previously the tax was lower and most of the forum posts is about why their taxes have now increased. My reading of this is not that Telus was double dipping, but they applied for the coupon rule, but did not meet the criteria of a coupon.

the court concluded that the billing credit did not meet the requirements of the coupon rules: it was not a "coupon" (defined to include a voucher, receipt, ticket, or other device) because it was not a "thing" entitling the purchaser to a reduction; rather, it was the reduction itself.


Also
https://forums.redflagdeals.com/telus-now-charging-tax-based-regular-pre-credit-pricing-home-internet-2176840/#p29039871
https://www.telus.com/en/bc/support/article/sales-taxes-and-your-telus-home-services-bill
Userlevel 5
The court article is from 2012. Complaints seem to have started in 2018.

So, the most likely scenario is:
  • Before 2012, TELUS charged taxes on full price, did not refund taxes with discounts, did not make it clear that discounts include taxes, and double dipped tax credits.
  • Between 2012 and 2018: TELUS implemented the court decision and started to refund taxes with discounts.
  • 2018 onwards: TELUS realizes they want to make more money, so they start to mislead customers and use fine print to make sure they get away with it. Instead of giving a $10 discount + refunding taxes on the $10, they give a $~9 discount + taxes on the $~9 to equal $10 total. They then go on to claim tax credits on the tax portion of the $10.
Userlevel 7
Badge +4
The court article is from 2012. Complaints seem to have started in 2018.

So, the most likely scenario is:
  • Before 2012, TELUS charged taxes on full price, did not refund taxes with discounts, did not make it clear that discounts include taxes, and double dipped tax credits.
  • Between 2012 and 2018: TELUS implemented the court decision and started to refund taxes with discounts.
  • 2018 onwards: TELUS realizes they want to make more money, so they start to mislead customers and use fine print to make sure they get away with it. Instead of giving a $10 discount + refunding taxes on the $10, they give a $~9 discount + taxes on the $~9 to equal $10 total. They then go on to claim tax credits on the tax portion of the $10.

🤷‍♂️

If something illegal is happening I would recommend filing a complaint with the CRA

Reply