GST discriminates against co-ops

Year Published:  1991
Resource Type:  Article
Cx Number:  CX4245

Abstract: 
The Goods and Services Tax (GST) discriminates against co-operatives, according to Tom Webb of Co-op Atlantic. Members who pay for shares in a co-operative will be forced to pay 7% GST on top on the transaction, while individuals who buy shares in a for-profit corporation will not have to pay GST. In addition, the way in which the GST is applied to local co-operatives which belong to a larger co-op will mean double the administrative costs for them than it does for privately owned businesses in the same field. According to Webb, government officials "don't understand what a co-operative is. They don't care... Whether it puts a whole alternative business form in jeopardy is of no concern to them at all. They couldn't care less."
From Pro-Canada Dossier. Subscriptions from Pro-Canada Network, 251 Laurier Avenue West, Suite 904, Ottawa, Ontario K1P 5J6.