Declaring Value of Bike during registration at Service Ontario

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OV3CHK1NG

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Hello everyone,

I recently purchased my first motorcycle. I've heard varying opinions from various people on the issue of declaring a value on your motorcycle with the Ministry. Obviously the elephant in the room here is you have to pay tax on the bike when you register it (in Ontario)

My questions are the following,
1. Can you tell the ministry any amount in regards to the purchase price of the vehicle?
2. Do they ask for a bill of sale?
3. Do they verify your amount stated with book values?
4. How do people go about registering the bike as a gift?
5. Where does the UVIP come into all of this (I have to get that when I go to service ontario location)

I appreciate everyone taking the time to read and help me out. Thanks.
 
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1. Yes, but lying about the amount could cause trouble for you. You would be liable to pay penalties + interest + the extra tax on the true amount paid if they found out.
2. No
3. They do not have values for motorcycles
4. You can't - with exceptions for family vehicle transfers which you would need to have notarized.
5. The UVIP will have the amount you and the seller declare that the bike was sold for, along with both your signatures. It acts as the bill of sale. And the tax is typically based of this value.

The only way I know of that they check the values is by mailing / contacting the seller and asking them to verify the stated amount that the bike was sold for.
 
The declared sale price is whatever you and the seller agree it is. Fill out the last page of the UVIP or write a bill of sale separately. Won't matter as it's usually not needed. I've never been asked for one. You declare the price you paid at time of registration. The Ministry MAY send a letter to the seller to confirm selling price. The seller can just shred it. They may get another and it can also be ignored and no more letters will come.
 
Just lie and make sure you advertise it everywhere you can. Humanity really does not deserve to survive.
 
I think the elephant in the room isn't the tax, it's people trying to evade it. The guv knows but the effort it spends is minimal, because the value of motorcycle sales is minimal. Once it becomes a revenue stream (like the recent bump for cellphones while driving), their agents will respond accordingly.
 
Keep these in mind when declaring the amount paid:

Case 1:
A friend of mine bought a bike fully certified only to find out a couple days later that the sub frame was crashed.
He declared the value of the bike to be less than 1/2 of what he really paid for it and that is the amount he was awarded in the
court settlement.

Case 2:
Another friend had his bike stolen a few days after purchasing it and the insurance company wanted to pay the amount on the invoice.
It took a few weeks of calls and negotiating before he got the cheque for the full value of the bike.
 
veteq said:
He declared the value of the bike to be less than 1/2 of what he really paid for it and that is the amount he was awarded in the court settlement.
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Yikes :(

I guess good thing he didn't write down $1 like the rest of us!
 
If it was a gift then go into the Centre and tell them what happened.

I've found them to be very helpful, but I always declare the value. What is one's integrity worth? $100 in taxes?

Then again when I gifted a bike, the recipient then had to pay all of his outstanding tickets, which was a tidy sum.
 
The standard practice in this area is to ask the seller for two receipts.
The first is for the actual price paid. Your insurance agent will want this when you insure the motorcycle
The second receipt is for 50% of the actual selling price. This is what you use to register the bike and to calculate HST owing.
Use your brains however. No one is going to believe you bought a 2 year old $30,000 bike for $50.
 
Who's business is it if you got a great deal on the bike and a crappy deal on the owners manual? 50$ for bike and 5000$ for the manual?
 
Robp said:
Who's business is it if you got a great deal on the bike and a crappy deal on the owners manual? 50$ for bike and 5000$ for the manual?
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Lol. That's genius.

Sent from a Samsung Galaxy far, far away using Tapatalk
 
Flywheel said:
I think the elephant in the room isn't the tax, it's people trying to evade it. The guv knows but the effort it spends is minimal, because the value of motorcycle sales is minimal. Once it becomes a revenue stream (like the recent bump for cellphones while driving), their agents will respond accordingly.
Click to expand...

I dunno, the government indefinitely collecting full sales tax on the same physical vehicle every time it changes is kind of an elephant
 
Where there is a trade involved, I've written "this is an even trade, no money has changed hands, therefore I have written in $1 CAD to generate a taxable amount" (as null won't be accepted). This makes it doubly hard for them as they would have to prove the worth of two bikes and any cash difference...which they can't really do in the public sector.
 
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Robp said:
Who's business is it if you got a great deal on the bike and a crappy deal on the owners manual? 50$ for bike and 5000$ for the manual?
Click to expand...

It is the government's business. Service Ontario is a revenue generating agency of the Province.
The people behind the counter are not stupid. The have seen every scam under the sun to avoid paying taxes.
If you are trying to pull a fast one and avoid ANY tax they will spot it right away. Among other things, they will refuse you a new plate.
Technically, the $5000 you paid for the manual is also taxable.
You may have done this in the past and the clerk was tired or hung over or lazy and you got away with it.

What do you do THIS time with an eager beaver behind the counter?

Always tell the truth, but just enough of the truth to acquire what you went there to get.
 
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Robp said:
Who's business is it if you got a great deal on the bike and a crappy deal on the owners manual? 50$ for bike and 5000$ for the manual?
Click to expand...

Sorry, I didn't realize that I already had a manual.

Refund please.
 
TwistedKestrel said:
I dunno, the government indefinitely collecting full sales tax on the same physical vehicle every time it changes is kind of an elephant
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It's annoying, sure but it's an infrequent and optional tax really. Not constantly flipping used vehicles won't prove harmful. On the other hand, every last one of us is dead without food, water, shelter, clothing and heating. There are some exceptions, I know, but each dollar you spend to exist shoulders some degree of FIT, PIT, CPP, EI & HST (OPP coming soon!). That's an outrageously greedy burden in my estimation
 
statsman said:
It is the government's business. Service Ontario is a revenue generating agency of the Province.
The people behind the counter are not stupid. The have seen every scam under the sun to avoid paying taxes.
If you are trying to pull a fast one and avoid ANY tax they will spot it right away. Among other things, they will refuse you a new plate.
Technically, the $5000 you paid for the manual is also taxable.
You may have done this in the past and the clerk was tired or hung over or lazy and you got away with it.

What do you do THIS time with an eager beaver behind the counter?

Always tell the truth, but just enough of the truth to acquire what you went there to get.
Click to expand...

And you think the clerk behind the counter gives two fecal matters? Sure. You may find that one that's a self righteous vagina, but I highly doubt it. I had one apologize to me because there was nothing she could do to lower the tax.

Yes, technically the manual is taxable and so is all that other crap you buy and sell on Kijiji.

I guess I live in the real world and not you're made up version of it.
 
Flywheel said:
It's annoying, sure but it's an infrequent and optional tax really. Not constantly flipping used vehicles won't prove harmful. On the other hand, every last one of us is dead without food, water, shelter, clothing and heating. There are some exceptions, I know, but each dollar you spend to exist shoulders some degree of FIT, PIT, CPP, EI & HST (OPP coming soon!). That's an outrageously greedy burden in my estimation
Click to expand...

I think you are the first person I have ever seen to defend the way this province taxes used vehicles. I am frankly disturbed and am going to go hide under a blanket
 
Robp said:
And you think the clerk behind the counter gives two fecal matters? Sure. You may find that one that's a self righteous vagina, but I highly doubt it. I had one apologize to me because there was nothing she could do to lower the tax.

Yes, technically the manual is taxable and so is all that other crap you buy and sell on Kijiji.

I guess I live in the real world and not you're made up version of it.
Click to expand...

I guess you know everything.
Until the day you get caught.
Then you get fined thousands of dollars and three years later you still don't have a plate for your bike.

The question as always is and should be,
Are the immediate benefits worth the risk of the long term dangers?
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