2011-05-19, 01:19 AM
To my knowledge, this isn't illegal, but it doesn't make sense either.
Here in Vancouver, you pay the value of the gift card (+ maybe a small handling fee...at a shopping mall called Richmond Centre, they charge you an extra $2.50 per card, mainly because it can be used at other affiliate malls too), and that's that. Thing is, when you buy something with the card, you get charged tax, so if they charge tax on the gift card initially, you're essentially paying double tax for your purchase.
Next time you go there to charge a gift card, ask them that: "When I or whoever I give this gift card to use it to buy things, am I or they being taxed? I mean...I'm already being taxed now for it, so when I or whoever I give this to uses it, there should be no applicable tax since the tax has already been charged, right?" See how they answer. I'm curious.
Here in Vancouver, you pay the value of the gift card (+ maybe a small handling fee...at a shopping mall called Richmond Centre, they charge you an extra $2.50 per card, mainly because it can be used at other affiliate malls too), and that's that. Thing is, when you buy something with the card, you get charged tax, so if they charge tax on the gift card initially, you're essentially paying double tax for your purchase.
Next time you go there to charge a gift card, ask them that: "When I or whoever I give this gift card to use it to buy things, am I or they being taxed? I mean...I'm already being taxed now for it, so when I or whoever I give this to uses it, there should be no applicable tax since the tax has already been charged, right?" See how they answer. I'm curious.