Tuesday, October 03, 2006

Schubert president says he’s been misled by MP

By Scott Neufeld Tuesday, October 3, 2006
After a lifetime of labour and service most restaurants offer seniors discounts but when it comes to the federal taxman, retirees are expected to pick up the full tab.More than a year after the Schubert Centre became the first seniors centre in Western Canada forced to charge GST, the federal government has yet to resolve the issue. Centre president John Piovesan said he has been misled by Okanagan-Shuswap MP Colin Mayes “I was led to understand through his secretary here that Mr. Mayes would get the government caucus to agree to a plan to exempt non-profit organizations on all coffee shop and membership charges,” he said.However, since the last time he spoke with the local MP, Piovesan said nothing has changed. He said the centre continues to charge GST on everything from card games to billiards to meals to memberships.“The GST is hurting us bad,” he said. “We’ve heard nothing in a month and a half.”When The Vernon Daily Courier first reported on this story in July 2005, membership fees had risen from $25 to $27.50 while hot meals cost $6.50 up from $6. Now membership dues have shot up to $37.10 and hot meals now cost $6.75 for members and $8.75 for non-members.Jack Gareb, the manager of the centre, said prices are rising to keep pace with the amount of GST they have had to pay. He said an initial audit left them with a $25,000 bill for previously unpaid GST. Since then prices have gone up to keep the centre operating at cost and pay off a $150,000 renovation of the building for which they received no GST refund, he said.“What can we do?” he said. “We had to start charging GST on meals because we’re getting hit with it.”The spike in fees has not forced a drop in membership but Gareb said it has lifted a few more dollars out of seniors who are on fixed incomes. He said seniors can collect receipts and ask for a refund from the government, but the centre would still have to charge the GST.Gareb said he would like to see the government change its tax laws to stop charging seniors. He said most other senior centres around the province don’t realize they should charge more GST. According to his research, Gareb said the Schubert is the only seniors centre in B.C. to charge GST for memberships.“It’s a tough nut to crack because the laws are in place,” he said. “I’m not saying they’re right; I’m not saying they shouldn’t be changed.”As long as he is president, Piovesan said he will continue to keep fighting to change the GST. He said he would like to encourage other Schubert Centre members who are negatively affected by the tax to express their opinions to Mayes directly at 260-5020.

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