Quebec tax being double charged?

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  • Updated 3 weeks ago
My bill includes a 15% tax charge, which is fine, but it's preceeded by the Quebec Municipal Tax (for 911). The problem is that the 15% is being charged ON TOP of the plan+QMT, meaning I'm being taxed on taxes.

Here's what my bill should look like:
Plan: 35$
No-tab discount: -3.50$
Subtotal: 31.50$
QMT: 0.46$
Tax: 4.72$ (=31.5*0.15)
Total: 36.68$

Here's what it actually looks like:
Plan: 35$
No-tab discount: -3.50$
QMT: 0.46$
Subtotal: 31.96$
Tax: 4.79$  (=31.96*0.15)
Total: 36.75$

The difference is minimal (7 cents), but I'm in accounting and I like to nitpick at this stuff. I don't see any context where this math makes sense. You never get taxed on tax, because the company isn't pocketing that 0.46$, it actually belongs to the government already.
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Arad Andrew Banis

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Posted 3 weeks ago

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Dinh, Mobile Master

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Hi Arad,

According to this https://www.agence911.org/en/municipal-tax-9-1-1-service/

"Is the municipal tax for 9-1-1 subject to the GST and the QST?

Yes. The Goods and Services Tax (GST) and the Québec Sales Tax (QST) apply to the amount that the provider demands of the clients in respect of the telephone service provided. The municipal tax for 9-1-1 is included in this amount and is thus subject to the GST and the QST."

Well, "tax on tax" is a real thing in Quebec.
(Edited)
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Arad Andrew Banis

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Thank you. Guess I can't really be surprised; my province does weird things.

"Tax on tax" it is, then.
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TJ Smith

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the "$0.46" 911 fee if out off the company's control and it's considered to be a "add-on"; as such it's subject to any and all sales taxes.
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Lloyd Willett

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How do you get this $3.50 no tab discount i am not on a tab myself
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Allan, Mobile Master

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I believe its the old discount from when you had the choice between 10% off your plan or a positive tab credit.
It's no longer available.
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Lloyd Willett

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Thanks Allan
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Arad Andrew Banis

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I confirm Allan's comment. The feature is no longer available, but Koodo was kind enough to let me keep it after a long phone call.