PST overpayment

As with most things “MPI”, it’s important for anyone purchasing and registering a vehicle in Manitoba to take the time to learn what the “rules” are and, equally important, what options are available to them in the event that they disagree with, or dispute, MPI’s policies or practices.

The amount you pay in PST when you register your vehicle is a perfect example of “what you don’t know”, can hurt you…in your wallet. MPI’s formula for calculating the PST payable on any new or used vehicle registration is, in many cases, completely unfair.

The policy, in our opinion, is based on MPI’s desire to prevent people from “under-reporting” what they actually paid in order to save on the tax payable. To combat the practice, which was quite common in days past, MPI compares what the “Bill of Sale” says against a “book value” and taxes you on the greater of the two numbers.

The problem with that practice is that, in many cases, the “book value” is simply wrong. Take the example of an individual who buys a car, for significantly less than “market value”, because it is full of scratches and peeling paint and requires a complete paint job, costing several thousand dollars. When they go to register the vehicle, they present a Bill of Sale that reflects the “lower than market” purchase price. The Autopac agent will then compare the purchase price to the “book value”. The problem is that the book value won’t account for the cost of the new paint job the car needs to bring it back to market value. The result is that Autopac will ignore the Bill of Sale amount and demand tax based on the “book value”.

Fortunately, you have the right to challenge that higher tax payable. And here’s how…

… if you believe you’re being overquoted or overcharged PST when you register your vehicle at your Autopac outlet, you have the right to provide an appraisal that will reduce the tax you pay.

Once we’ve inspected your vehicle and agreed that you’re being overcharged, we can provide you with an appraisal that will reduce the tax payable, based not on the Bill of Sale or the book value, but on the actual cash value (ACV) of the vehicle. Simply present the appraisal when you register the vehicle or within 60 days after the registration and you’ll only be taxed on the appraised amount.

Contact us for more information. We’re here to help.