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Old 09-14-2023, 10:18 PM   #5160
ssjGoku69
I STILL don't get it
 
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Can someone explain how "removing the GST" makes it cheaper to build rental units?

Any GST registrant, e.g. developer for a rental building or otherwise, would be claiming the GST they paid on their costs and expenses as input tax credits on their GST return so all GST amounts they paid gets refunded back anyway. For example, the current environment would have DeveloperCo pay $20,000 of GST from their total costs and expenses for the year to their suppliers, tradesmen, etc. When the Company file their GST return, they get that exact GST amount refunded back to the Company which means DeveloperCo didn't pay any GST when the dust settles. There isn't any GST to cancel. Can someone explain how it does anything or is this just politics?

Last edited by ssjGoku69; 09-14-2023 at 10:26 PM. Reason: grammar & brevity
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