Decision costs UPS $2.9M in overpaid GST

Discussion in 'The Latest UPS Headlines' started by cheryl, Feb 19, 2008.

  1. cheryl

    cheryl I started this. Staff Member

    Decision costs UPS $2.9M in overpaid GST - Financial Post

    The world's biggest package delivery company may have been doing customers a good turn by paying upfront for the taxes and duties they owed on parcels shipped into this country from the United States.

    But the Federal Court of Appeal has sided with Canada's tax collector, ruling that UPS isn't entitled to a rebate for those payments -- leaving the company about $2.9-million out of pocket.
     
  2. DS

    DS Fenderbender

    As a driver in Canada I've seen more than my share of packages bought in the USA by Canadians.UPS acts as the broker and they decide the value .The brokerage charges are based on the value of the item,the higher the value, the higher the brokerage charges.I'd guess that 95% of the time,the customer just pays the exhoribant fees,but once in awhile,the lady that left her coat at her moms in Florida,refuses to pay
    anything and tells them to keep it.I don't feel sorry for ups on this one,they are making it seem like the government is responsible for what is in effect,thier incompetance,and greed.I truly believe that if UPS stopped trying to be in the brokerage business,and concentrated on making our public aware of the fact that All of the other UPS service levels ,other than standard,do not have brokerage charges.I think the volume would
    increase dramatically,and the public would respond enthusiastically.