You are in Canada, very different game.
My condolences on having to live with an outrageously complex system
that effectively prohibits drop shipping. ;-) So contractors must
personally deliver every sheet of drywall to the jobsite and
distributors can't have bulky items shipped directly from supplier
warehouses. No wonder the stock market is plummeting.
The recent topper: A couple has
given their usual tithes to church and the church issued the usual
year-end receipt. Because there was no explicit statement that only
"intangible religious services" were rendered in return the IRS
disallowed the whole (very large) deduction. AFAIR they also did not
allow a retroactive fix.
Pretty sad, if the reports tell the whole story. Those guys (IRS) have
too much power**. The church issued non-compliant forms (no volunteer
tax accountant?) and the couple didn't have that huge deduction
paperwork checked before filing their return. The church website
probably is hosting malware too. The post-fix appears to be
statute-barred. I suppose they should be happy the IRS is not going
after previous years or assessing everybody who was a major benefactor
of that church (or maybe they are). They lost
in tax court, so I suppose they can still pay the tax and take it to
District Court, but for $9K it's probably not worth it, unless someone
else is footing the legal bill.
**
http://www.taxdefendant.com/themostunfairthingabouttaxlaw.htm
Tax money is their lifeblood and they're very, very serious about
collecting it, especially if it can be done with little effort (cost)
to themselves.
"...only a matter of time before someone tries to sue their church if
the IRS denies them a deduction because their receipt was
noncompliant"
https://www.startchurch.com/blog/view/name/irs-tells-couple-tithes-to-church-not-tax-deductible
And then it's plumbing materials to a large electronics business ->
auditor raises eyebrow -> poof -> denied.
Now that's just silly, but if your auditor is looking every $200
non-capital item, you've got umm.. problems already. Mabe a
disgruntled employee gave them a false tip, or there is some mistaken
identity.
Out here it all has to be quadruple-well documented and if they do not
like one wee item such as a "wrong" name for shippimng destination you
might be out a lot of money. I prefer not to risk that.
To me, it's just a sale. I buy something, actually take legal title to
the goods once it gets picked up by Fedex, and it's delivered to the
customer who then gets invoiced for it. No big deal.
But if you're not set up for dealing with sale of tangible goods, I
can see as it might be an unwelcome increase in complexity and some
other kinds of potential risk.
