Have you ever seen those infomercials about buying houses with "No Money Down?" They are really well done. They have issues people offering great testimonials about how they have gotten rich, buying rental properties, with absolutely pick up out of their safety pocket. You see this guy, standing on a street corner, talking to someone, and he says, "I own that one," pointing to a beautiful colonial. "I also own that one next to it, and the one two doors down, and Soon we will be closing on the one directly across the street from it, next about a week." He then assures us that he has purchased 17 homes in dispersed in the remaining eight or ten months, with zero money recorded on the properties. Plus, in many cases he's also paid no closing costs.
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In Canada, exports are "zero-rated" sales for .S.T. purposes. This means soon after you ship a product to someone outside Canada, you don't charge L.S.T. Yet, you get to claim (or deduct from the G.S.T. collected by you) all the "input tax credits" (G.S.T. that you paid for business purposes) to make that foreign trade. The idea, I suppose, is to encourage dispatching.
It didn't take yearn for me to realize that this was no technique to make cash in real real estate. Consequently, I removed these houses as fast as I was able to. There were plenty of buyers, willing to take over my headaches, because they had the capacity to make it work, they reckoned.
The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the only technique they can collect it (other rather than a self-assessment system) is a great online sales tax. Further, it is claimed that businesses in the european Union suffer a major competitive disadvantage because they've got to collect Value Added Tax (VAT) but others don't.