Taxes on tab balance if paying it off!!!

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  • Updated 8 months ago
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Why am I being charged taxes on my tab? I just paid it off and noticed it was taxed?
I'm 100% sure a Koodo rep told me that if it's paid at Koodo kiosk it would be taxed but if I paid it online through my Koodo account that it wouldn't be taxed!!
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Gerry Hanlon

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Posted 3 years ago

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Jonathan I, Mobile Master

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I'm sorry that you were misinformed, but Tab balances are taxed regardless of where they're paid. Every provider's subsidies are taxable.
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RudyW

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Why would there be a difference where you pay it off? Revenue Canada want your money regardless. :-)
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Gerry Hanlon

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I'm just going by what I was told by a Koodo employee! I was paying my tab off in store and she told me if I paid it using my Koodo account there would be no taxes. Didn't ask her why, I just said ok, happy to be saving some money or so I thought! Lol
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Mathieu, Mobile Master

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You will be taxed regardless, the tab is basically a credit given to you to cover the purchase price of the phone. When you pay it off, your paying the phone off, and phones have taxes on them.
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Ivan, Mobile Master

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The only way that you avoid paying taxes on the tab is to let the tab be paid off over time until the balance reaches zero. Any time you choose to pay it off early, you'll be taxed on the remaining balance.
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Marcello Ferlito

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Tab are taxed even monthly. Check your bill.
Tab is included with monthly charge then tax on top of it all.
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Allan, Mobile Master

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This thread is 2 years old. No need to revive it.