This article was originally printed in the April / May 2001 issue of Tracking The Industry. . .
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WHAT DO YOU KNOW ABOUT TAXES?

Upon multiple requests, we did some digging. With appreciated help from FBC (Farm Business Consultants) here are some notations. This list should not be relied on for tax purposes, but rather it may serve as a guide. Call Revenue Canada 1-800-959-5525 to request an agricultural GST and regulation memorandum of information or become a member with FBC for complete tax solutions at 1-800-265-1002.

• GST must be charged on the following:
  • custom boarding of animals
  • custom bottlefeeding
  • hunts (just the hunt part . . . guiding, lodging, meals, etc.) not the animal
  • supplemental feeds (not hay or prepared grains)
  • hauling of hay, feed, etc.
  • (custom) labour (fencing, etc.)
  • feeders
  • semen sales in Canada has GST on it; if proven sold in the states, no GST
• GST "exemptions":
  • stock sales ("0%" rated as cattle, but not technically "exempt" which allows us to get GST back on stock-related purchases) unlike horses which are considered a "luxury item"
  • hay
  • prepared grains
  • US sales (proven sold to States)
• Of special interest:
  • donations . . . an animal or semen straw must be claimed as income (ex. $2000 at an auction) before it can be deducted as a charitable donation (ex. $2000 donation), therefore the tax benefit "washes" out. The receipt is only for records! (THE OTHER REWARDS ARE EVER PRESENT)
  • on hunts sold to U.S. clients, charge full GST, then subtract half and mark as rebate. This must be clearly stated on receipts and must be recorded as such in your records this prevents extra paperwork for your clients in claiming 1/2 the GST

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