New Phone Bill

[dibanez]

Anyone ever got a bring it back contract and had to pay alot of tax?

My bring it back contract for my old phone ended on january and returned it. I got a new phone (s22) with a bring it back contract. I, of course have to pay a one time connection fee of $50. With my plan I am paying 52$ + Bring it Back Easy Payment $30 + Connection fee $50 = $132.. plus with my wifes phone bill adds up to $208. Make sense... but what doesnt make sense is I am getting charged $150 tax... TAX.. $150?? on a $208 PHONE BILL... I believe that tax here in Manitoba is 12%... not 75%. and the device payment I chose is $0 upfront...

Can anyone explain or experienced the same situation? Thank you

[NFtoBC · Accepted solution]

The government gets its share up front. The tax is charged on the value of the new phone.

[xray]

CRA doesn't care how you actually pay for your phone, they tax the full value when you receive the phone.