Accountant’s PST example all wrong, 2
To the editor:
While I don’t want to wade into the HST issue, I must point out the error of the example Gabriele Banka used in here June 28 column on the HST.
The example is the process (and taxes accrued) on the trip of a log in the woods to a finished desk.
Rather than PST being charged on first the log, then again on the sawn wood and yet a third time on the manufactured desk; what would actually happen is the sawmill would buy the log PST-exempt from the logger as a raw material and in turn the desk manufacturer would buy the sawn wood PST-exempt from the sawmill as a raw material.
Only when the desk was sold to the end user would PST be payable.