6,500 people who bought used cars in May to get bill from Ontario tax man

curbsiding. Bayne Stanley / The Canadian Press

TORONTO – About 6,500 Ontario residents who bought a used car in May will receive a letter from the Ministry of Finance seeking hundreds of dollars in unpaid sales tax.

The government says a third-party provider gave the wrong information on the wholesale value of used cars for almost the entire month of May, so buyers did not pay the appropriate amount of sales tax.

Finance Minister Charles Sousa says $2.4 million in retail sales tax was not collected on used cars and trucks sold across Ontario between May 1 and 27.

Sousa says it’s unfortunate that the ministry has to send letters with assessment notices advising those affected of the additional tax they owe.

Officials say most will have to pay about $100 to $500 in sales tax, which the minister says is only fair to everyone else who purchased a used car and paid the proper amount of tax.

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Sousa says the government has taken steps to make sure the problem doesn’t happen again, but the opposition parties blame poor Liberal oversight for failing to collect the taxes at the time the cars were sold.

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