Ontario retail sales tax on software: August 30, 2002

Tax Executive, The, Sept-Oct, 2002

(e) RST Guide #650. RST Guide #650 presently provides excellent information on the ORST treatment of computer programs and related services. We believe, however, that it should be expanded. For example, there is a need to define terms such as data management. Explanations of the tax treatment of different types of query or report-writing services would also be helpful. Finally, the use of common industry terms in the Guide would assist all parties in interpreting and complying with the administrative guidance.

Conclusion

TEI's Toronto Chapter appreciates this opportunity to present its comments on the draft documents created by the Ministry in respect of the ORST on computer and related services and would welcome a chance to meet with the Ministry to discuss the issue. We commend Ontario for its efforts to streamline what will undoubtedly continue to be a difficult area. We look forward to working with you on these and other issues.

If you have any questions, please do not hesitate to call me at 905.858.5379, the chair of the Chapter's Commodity Tax Committee, Phil W. Riley, at 905.548.4475, or the vice chair of TEI's National Commodity Tax Committee, Carol Felepchuk, at 905.316.6685.

(1) The change in tense in the draft legislation would also require an amendment to the tense used in the definitions in the regulation, which would be consistent with the tense used in the preceding clause (c).