Did you know we been charge extra on our billing with tax?

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KN1231
Neighbour

Yes they can. I just spoke with the CRA's GST Technical Inquiries Department, and credits CAN be applied after tax is calculated (similar to gift cards). The catch is that this information needs to be in the customer agreement, which it is at the bottom of the following page: https://www.telus.com/en/bc/support/article/pst-telus-bill. It says that the credit includes the credit for the taxes as well.

As a customer though, this seems like a shady business practice, and I certainly never "agreed" to it.

KN1231
Neighbour

Sorry, meant to add that it seems shady in that it seems arbitrary as to what they deem to be a discount vs. what they deem to be a credit.

BellaKiki
Resident

I'm new to this forum, but came across it after searching the internet on this exact issue.  After looking over my bills today, I noticed Telus has been charging me GST on my plan prior to the discount, since November 2017 when I made a change to my plan.  This is not how they display it on their invoices either.  They could easily get away with it if they changed how they showed the transaction on the statements.  No matter, this seems to be shady business practice on their part, nickel and diming their customers.  If you consider that there are many customers whom are not aware this is even taking place.  I've been chasing Telus for a better part of the day today, and was able to obtain a $0.25 credit for my most recent bill, but that was all they were willing to do and said that they escalate this issue. 

 

I then contacted CRA, whom was of no assistance and directed me to the CRTC, where I have made a complaint.  It will likely have no impact either as they see this as being a Revenue Canada issues since it pertains to GST charges.   Next stop, Better Business Bureau and Social Media.  Yes it's only $0.25 each month and nominal amount, but unfair to the consumer.

BC1
Friendly Neighbour

@Lola wrote:

@Lol @ the Rulings and Interpretations Team, Ministry of Finance -- some of the best long-winded gov-weaseling I've read in a long time.



All I see is " PST is being applied on (most of) the value of the discounts. This would be incorrect ". 

Lola
Rockstar

@BC1 wrote:

@Lola wrote:

@Lol @ the Rulings and Interpretations Team, Ministry of Finance -- some of the best long-winded gov-weaseling I've read in a long time.



All I see is " PST is being applied on (most of) the value of the discounts. This would be incorrect ". 


"PST is being applied on (most of) the value of the discounts. This would be incorrect, assuming Telus is not receiving reimbursement from a third-party."

 

You didn't see the rest.

Community Manager
Community Manager

Hi @Lola

Can I suggest you contact our Client Care team in regards to months where the tax calculation isn't correct on your invoice? We did previously have a billing issue for this that has since been closed and rectified. You can contact them at 310-2255

Lola
Rockstar

@Nicole-Natassha

 

I'm not having an issue. Smiley Very Happy Thank you for asking me though.

Telus-tax
Resident

I did just that yesterday Monday 23 Jan 2018. Took an hour and I was told that since October 2017 Telus has been charging gst/pst on credits, and that it was not going to change. She also said that CRA had demanded the changes!

I intend to contact the CRA to get this verified today. If not the advise I was given  was to take Telus to court. Since that is most likely the only way to get them to address this. I am going to talk with my MLA first.

 

Community Manager
Community Manager

@Lola I need more coffee! My apologies!

 

@Victoria_ Mike that message was for you!

Telus-taxes-wrong
Friendly Neighbour
 
canucks4life
Ambassador

Be sure to double check your home services bill guys just noticed tonight my taxes were incorrect for the past two months...chat rep indicated they've had a lot of customers complain about the same issue.

Victoria_Mike
Resident
TMc
Neighbour

I have also had incorrect bills the last two months. As far as I can understand, GST used to be calculated on the post-discount amount but now it is being calculated on the pre-discount amount. Did the chat rep rectify the situation? I was told that the new calculation was correct...

Parsian1
Neighbour

They are calculating the GST on the pre-discounted price. A Telus Rep confirmed this for me. She noted that this was legal and that it would continue. 

 

I guess I need to brush up on the tax code. Seems sleazy to charge tax on a price the customer isn't even paying....

Telus-taxes-wrong
Friendly Neighbour
 
MsurferBC
Resident

I just discovered the overcharging of GST and PST on my recent Telus bill and found that it started around December after negotiating some discounts to my phone and internet bundle in late November. As I'd negotiated for discounts with Telus before, I was a bit surprised that this time I received in the mail, a multi-page "Customer Service Agreement" and "Order Summary" detailing the discount and credits they applied.

 

When I called Telus customer service, the rep I spoke to, after consulting with a manager (I assume), said the discounts are deducted from the total balance BEFORE taxes are calculated but credits are applied to the total bill AFTER tax is calculated. Doing the tax calculations for both PST and GST added up correctly using their new method but it is not the way tax was applied in the recent past where both taxes were calculated on the total bill AFTER discounts or credits were deducted.

 

The next day I contacted both the CRA and the BC Ministry of Finance to find out what's going on. The following is from the notes a wrote during my calls on Mar. 8/18 and I haven't yet done anything I've been advised.

 

CRA General inquiries directed me to their GST/HST Rulings Dept. 1-800-959-8287. The rep there said he can't give opinions on the way tax GST is applied by Telus as GST rules are complicated and suggested I FAX my inquiry, bill details, and Telus service agreement to 604-658-8666 with "Attention GST/HST Rulings" on the cover letter. He said It can take 45 bus. days for a reply.

 

I thought FAX was rather archaic and ask for an email address instead and was told they do not accept email inquiries unless you have a GST account, which I don't. The alternative he offered was to regular mail my inquiry and documents to:

 

GST/HST Rulings
200-1010 SM
9755 King George Boulevard
Surrey BC
V3T 5E1

 

Write "Attention GST/HST Rulings" on the inquiry letter.

 

The CRA rep further stated that if I feel that a company is not complying with the tax laws of Canada, I can contact the LEADS dept. @ 1-866-809-6841 between 8:45-4:45 EST. He added however, that the LEADS dept. does not reply back with a report or decision. They will do an audit on the company in question if they feel it's necessary. So there is no transparency in their rulings.

 

When I called the BC Ministry of Finance (PST Dept.) @ 1-877-388-4440, the rep told me that I am not the 1st person to inquire about this PST tax issue by Telus. The ministry has had several people contact them and they are investigating to find out how Telus are applying the PST because they still don't know.

 

The BC Ministry of Finance rep said I can send an email (at the address below) about the issue to be placed on a list of complaints.

 

ctbtaxquestions@gov.bc.gov

 

I can ask how PST is applied to charges on my bills and I can attach copies of my bills if I wish but it's not necessary. They will contact those on the email list after a decision is made.

 

When I asked if there had been any recent legislative changes to PST application rules, she said NONE regarding Telecommunications in the past few months.

 

So, very strange times we live in. I'll post again when I learn more about this issue.

 

 

 

 

 

 

 

 

RCcola
Resident

 

Just noticed this tax issue on my April bill, but had been going on since last year.

 

I was recently offered a lower rate on internet and TV so that I wouldn't cancel and leave for Shaw.  After some back and forth with customer service it appears the issue is with Telus's treatment of discounts.    Apparently, Telus uses "credits" and not discounts to lower the monthly rate, which has tax consequences.   Credits, like a store credit, are applied after taxes are calculated, while discounts are applied before taxes are calculated. 

 

I asked Telus why they use "credits" and not discounts since it affects taxes paid by the customer, but has no apparent affect on them (ie, revenue should be the same for Telus) they couldn't tell me.  The came up with some excuse that because I was given discounts previously that I could not be given discounts again.   The other issue I brought up was that this was not mentioned during the offer.  All Telus tells you is your new monthly rate, which a reasonable person would believe is what the taxes are based on.  

 

Waiting to hear back from their L&R department to find out how to resolve this issue.

 

 

Community Power User
Community Power User

 

So...... when and why would a credit be applied instead of a discount?

 

NFtoBC
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BC1
Friendly Neighbour

How Is GST/HST Charged on Volume Discounts?

For volume discounts, how you apply GST/HST to the sale depends on whether you offer the discount at the time you make the sale or after you make the sale.

 

For a discount offered at the time of sale, you charge GST/HST on the net amount (the sale price minus the discount). So for instance, if a customer bought ten dancing hula lamps that normally cost $100 each and you were offering a $10 discount on that item, you would charge the customer GST/HST on the net amount of $900 ($1000 minus the $100 discount).

 

Same situation, the $10 (or whatever amount) per month is a discount not a credit. It was offered at the time of the sale. Tax should be charged on the net amount.  A credit might happen after the time of sale... for example if the customer was a long time customer and threatened to leave Telus, Telus offered a one-time credit of $50 off the next bill... even at that situation, whether to refund the GST on the credit is still complicated and not a definite answer.