The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Wed Jan 9, 2019
Author: RV News Staff
The Canadian Automobile Dealers Association (CADA) announces it has won a major tax case involving Canada’s Harmonized Sales Tax (HST) and insurance. The HST is a combination of the Canadian Goods and Services Tax and Provincial Sales Tax that is applied to taxable goods and services.
CADA’s Legal Action Fund supported a dealer case before the Tax Court of Canada, which involved a dealer that had been assessed for HST on insurance commissions it received. CADA’s legal position is that the insurance commissions received by their dealers are HST-exempt similar to the fees received for “arranging for” a financial service. In contrast, the Canada Revenue Agency’s (CRA’s) position has been that HST applies to insurance commissions received by dealers.
Specifically, CADA supported the case involving a dealer, Applewood Holdings Inc. The case was heard by the Tax Court of Canada in early November 2018. In mid-November, the Tax Court released its judgment agreeing that the insurance commissions were HST-exempt. Importantly, CRA had until mid-December 2018 to appeal the decision to the Federal Court of Appeal. This week the RVDA of Canada has been in contact with CADA, as the association announced that CRA has chosen not to appeal the Applewood case to the Federal Court of Appeal.
While each tax case is fact specific, this important and highly significant ruling by the Federal Tax Court should provide clarity for CRA actions on insurance for RVDA dealers facing similar audits. The RVDA of Canada will now continue to work with CRA officials to ensure clarity on this file and to make sure that auditors are well informed.
The case findings will have an impact on RVDA dealer members that provide insurance products to customers. CADA is the national association representing franchised new car dealers in Canada.