Farmer battles GST credit restriction
A Saskatchewan farmer is taking on the federal government over the Goods and Services Tax (GST).
Lorne Sheppard believes Ottawa is not being fair in the way it determines what is eligible for a GST credit. Sheppard's problems date back to 2001 when he bought a new farm truck with an extended cab.
Canada Customs and Revenue Agency ruled the truck was a luxury vehicle. It said he could only claim a GST credit on $30,000, even though the truck cost more than $50,000.
Sheppard says even a new truck without the extended cab would have cost at least that much. "If I paid an extra $1200 or $1500 for the extended cab option, then the fair thing that the Minister of Finance in Ottawa should be doing is denying me the GST on that additional cost that I incurred."
Sheppard will appeal the ruling. He believes the government is simply trying to recoup from farmers the money it lost in some high profile GST fraud incidents.