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24 THE OSHAWA TIMES, Thursday, July 20, 1961 Rulings Given On Enterprises The rulings on sales enter- prises under Ontario's Retail Sales Tax, effective Sept. 1, are as follows: (1) Service Enterprises In General Persons engaged in the busi- ness of rendering service are consumers and not vendors of the tangible personal property which they use incidentally in rendering the service. The tax imposed under this act applies accordingly to the sale of tan- gible personal property to them. Examples of service enterprises may include, but are not limited to, the following: banks, adver- tising agencies, commercial ar- and the facts and circumstances of the transaction. (3) Printing and Advertising Expenses Every vendor must pay tax on purchases of office supplies, such as circulars, business cards, invoice forms, statements and all accounting forms, regis- ters, minute books and other printed matter, such as labels used for purposes of publicity; and on purchases of blotters, calendars and all other articles which he distributes for pur- poses of publicity. Advertising space in newspapers, reviews, periodicals and other publica- tions including billboards is not subject to tax but the cuts, tists, 1 ers, S, bar- bers, beauty shop operators, tire repairers, taxidermists, shoe re- pair men, bootblacks and sim- ilar enterprises. Persons 'rendering profession- al services are consumers and not vendors of the tangible per- sonal property which they use incidentally in rendering their services. Examples of such per- sons are lawyers, architects, en- gineers and accountants. If any of the persons refered to under this heading, in addi- tion to using tangible personal property incidentally in connec- tion with rendering services, are regularly engaged in selling tan- gible personal property to con- sumers, they are vendors with respect to such sales and they must obtain vendors' permits, file returns and must collect and remit tax based upon the amount of such sales. (2) Advertising Agencies Advertising agencies are not vendors of tangible personal property when they render the services of preparing and plac- ing advertisements in advertis- ing media. These media include but are not limited to, (a) newspapers, magazines and other publications; (b) radio and television pro- grams; (c) billboards and other forms of outdoor adveritsing; and (d) cards in cars, buses and other facilities used in public transportation. Advertising agencies are not vendors of roughs, comprehen- sives or visualizations prepared solely for the purpose of display- ing the advertising idea to the clients of the agencies. Advertising agencies are con- sumers of tangible personal property incidental to the oper- ation of their offices, such as stationery, ink, paint, tools and office supplies, and the tax ap- plies to the price paid by the agencies when they purchase such articles. When adveritsing - agencies, acting as agents for their cli- ents, purchase tangible personal property, the tax applies to the , engravings, vignettes, maps, ete., used for such ad- verti ts are subject to the tax. Labels and identification tags attached to a product represent- ing printed matter giving in- structions for its use and inform- ation about such product are deemed not to be used for pub- licity purposes but to form part of the product sold and as such are not subject to the tax. Sub- ject to the above, tangible per- sonal property commonly known as sales catalogues, sales price lists, sales pamphlets and sales hand bills when produced upon the special order of the pur- chaser and all materials used or consumed in the industrial pro- cessing of such catalogues, sales price lists, sales pamphlets and tario that the sales tax was not applicable in the instances where furnifure, appliances, fix- tures, etc. were Included in the sale price with the real property. 4 Items normally considered by realtors as extras in agree- ments of purchase and sale are taxable according to the inter- pretation of the act by the Comptroller of Revenue. Alum- inum storms, screens and doors, electric light fixtures, drapes, carpets and broadloom, hot water heaters are included in this category. Oftentimes plants, stoves, refrigerators, lawnmow- ers and stepladders are turned over to the purchaser as a good- will measure. Tax will already have been paid on these items and it is unfair for the purchas- er to have to pay duplicate tax. It would be almost imposs! and much too costly to collect, B It is not clear who is to c® lect this tax. Would the real or the vendor collect it, NAME COLLECTOR sales hand bills purchased by a printer, advertising agency, | manufacturer or merchant are| exempt from tax. | (4) Barber and Beauty Shops | Barber and beauty shop oper- ators render service. They are purchasers for use or consump- tion of the tangible personal property used or consumed inci-| dental to the rendering of such| service and the use or consump-| tion of such goods by them in| taxable. Barbers and beauty shop oper-| ators are required to collect the tax on retail sales of cosmetics, hair tonics, lotions and like ar- ticles when not used in connec- tion with their services, except as provided in the next para-| graph. When such sales are few and infrequent the vendor is not re- quired to hold a permit, but in such a case, he must pay the tax on the purchase price of such ar- ticles at the time of purchase on the basis that he is the con- sumer or user thereof. (5) Dentists and Dental Laboratories Dentists and dental labora- tories primarily render profes- sional services and are therefore not required to collect tax there- on from the client paying for such services. Dentists are d d s of the materials, supplies, equipment and laboratory products which purchase price paid for suchip ew 5 ang with the excep- property by the agencies. Ex- amples of such transactions are urchases of: pamphlets, book- tion of materials entering into dentures and dental appliances which dentists and dental labor- ts and other printed matter; atories may buy free of tax, engravings; and electro-types and matrices. When an advertising agency does not act as a true agent, it will be regarded as a vendor of the tangible personal property which it furnishes to its clients. Under such circumstances, the advertising agency must hold a vendor's permit, file returns and must collect and remit the tax based upon the price charged by it to its clients for such prop- erty. In determining whether ad- vertising agencies act as true agents of their clients, consider- ation shall be given to the con- tract between the parties, the such materials, supplies, equip- ment and laboratory products are subject to tax and such den- tists and dental laboratories must pay the tax to their sup- liers. Taxable purchases include among others: sales of equip- ment such as dental chairs, motors, instruments, x-ray ma- chines, office equipment, station- ery, implements and all mater- jal and supplies of whatever nature except those which enter directly into dentures and dental appliances. (7) Educational, Hospital conduct of the parties with re- spect to the property involved and Charitable Institutions Tangible personal property | and authoritative dictionary George Brown of the Univer- sity of Toronto sorts through some of the 12,000 names already collected for the dic- tionary. --CP Photo Teams of researchers across Canada are working to compile Canada's first full of biography. Professor Toronto Board Urges Revision The three per cent Provincial|is the vendor of taxable goods. Sales Tax to be introduced by| the Province of Ontario on/ BEWILDERMENT Sept. 1 is an unwieldy absurdity Irregularities and contradiec- as it applies to real estate The tions in the interpretation of Toronto Real Estate Bo ar d/the rules and regulations of the charged recently. The sales tax|act have left real estate offi- is administered by the Retail|Cials in a state of bewilderment. Sales Tax Branch of the office| The Toronto Real Estate of the Comptroller of Revenue, (Board had advised its public The Toronto Real Estate|through the press that the 3 . «. Save the Tax and [Board is submitting a resolution|Percent tax would not apply to SMART HOMEOWNERS WILL . . . SUPPLIES BROWN'S LUMBER & LIMITED -- Offers These -- Special Ualues. ..."'Stay-At-Home" Vacationers!" ASBESTOS SIDING -- ALL COLORS, per ft. .............. Be iy er irra Sorin PLYWOOD SHEETS -- per ft., as little as REDWOOD SIDING, per ft. AROMATIC CEDAR CLOSET LINING, INSULATION (POURING), per bag . . .. WINDOWS -- VARIOUS SIZES, each, : per ft. from nye: ASPHALT SHINGLES -- LIMITED SUPPLY, per bundle TOOLS TO HELP YOU WITH YOUR WORK, each TILEBOARDS -- WHILE THEY LAST, per ft., from, SHELVING LUMBER, per ft., from, PEGBOARD -- FOR STORAGE AREAS, per ft., from, FLOOR TILE each, from CEILING TILE, each, from . ... I FE hen PLASTERBOARD, per ft., from . PLYWOOD SHORTS -- WHILE TH WALLBOARDS, per ft., from FREE -- with every order of $18.00 value or over. A FLOATING FISH KNIFE. One to a customer. EE PR Teferete sfaTe bo sMeBs e870) {to the Ontario Association' of| furniture, appliances, fixtures, [Real Estate Boards to have sec-|et¢. included in the price with [tions of the act repealed by the|r€al property. Sales of real provincial government. |estate and intangible property The TREB also states: [Ee not taxable. The rules and regulations| The office of the Comptroller under the act were intended to|0f Revenue refuted the Toronto provide an administration which Real Estate Board statement would create the fewest possible| With the suggestion that TREB problems for the taxpayer who|Was misinforming its public. is the purchaser of taxable|However, TREB had been ad. goods and for the retailer who vised. indirectly through the office of the Registrar of Real, Estate for the Province of On-| * hk kh k kX X X X ¥ ¥ ¥ Xx Brown's Lumber & Supplies 7254706 ° OSHAWA, ONTARIO Sept. 1st : 436 RITSON ROAD NORTH . . . Don't Wish i You Had... Effective purchased by any of the institu- tions referred to are taxable if used or consumed by the institu- tion in the process of rendering service. If, however, tangible personal property is purchased for resale, the institution then becomes a vendor and must hold a vendor's permit, file re- turns and collect and remit taxes from the ultimate con- | sumer at the time of sale. {(9) Physicians, Architects, En- | gineers, Accountants, Lawyers, (ete. | Persons such as physicians, architects, engineers, account- ants, and lawyers who exercise (a profession or trade and pro- | vide only- services and thus are not vendors under the act, must | pay tax to their suppliers of all purchases of tangible personal property which they purchase for use in the pursuit of their professions. consis FREE DELIVERY a CASH...notr COUPONS % eo CAMPING SUPPLIES eo AUTO ACCESSORIES e PICNIC SUPPLIES o SWIMMING SUPPLIES SAVE AN EXTRA eo LAWN o FISHING SUPPLIES o PAINTING SUPPLIES e BICYCLES, ETC. | FREE DELIVERY | PAINT | Ale, BEAT THE & TAX ! Saves © BUY NOW | & YOU _ 3%]; FURNITURE lo-glaze SPECIAL 5.95 FREE PARKING FREE DELIVERY ANY PRICE - ANY COLOR WE HAVE IT! COTTAGE SPECIAL WHITE 2.95 Gal. EXTERIOR WHITES PAINTS DURA-HIDE 9.80 SPECIAL 479 FREE PARKING BUY NOW ! 3% TAX STARTS SEPT. Ist dD PAINTS TRUTONE 9.85 GAL. Save On . . . SAFETY SERVICE . o All Parts and Acces. Guaranteed FIVE LICENSED MECHANICS SHOP FOREMAN -- J. CLAUS OSHAWA STORE ester W TIRE & AUTO SUPPLY CO. © We Install What We Sell SPECIAL cee ROLLER KOTOR KITS WALLPAPERS Pre-Pasted & Regular, per roll 99- 29: 145 KING ST. W. PHONE 728-1607 da li «= ASSOCIATE STORE FREE DE y i asl (PATTE'S OSHAWA VERY FREE PARKING Se PAINT & WALLPAPER LTD. 90 YEARS AT 85 SIMCOE STREET NORTH 725-3529 (Free Parking at Rear of Store Off William Street.) 1