‘Costly computer error’ hits used-car buyers
The Ontario government is chasing motorists who purchased used vehicles in the spring and didn’t pay enough tax — ranging from $100 to $500 for most — through no fault of their own.
The government says because of a computer error by CarProof, some 6,500 motorists who purchased used vehicles between May 1 and 27 were charged less retail sales tax than actually owed, totalling $2.4 million. CarProof is a private company that provides a history on used vehicles and assigns values to them.
Finance Minister Charles Sousa told reporters Wednesday it was an “unfortunate” error, but added retail sales taxes will be collected just the same from those who were affected.
“In order to ensure fairness for all, the unpaid taxes are being collected,” Sousa said in an email statement to the Star. CarProof could not be reached for comment.
“I acknowledge and regret that an isolated situation has unfortunately occurred due to a computer format- ting error with third-party data and has resulted in certain people being required to pay an outstanding balance of RST owing on their recent used car purchases,” Sousa stated.
“I want to reiterate that this is an isolated incident and the ministry has taken appropriate steps to ensure that this does not happen again.”
In the legislature, New Democrat MPP Catherine Fife blamed the government’s “appetite for privatization” for the “costly computer error” and said it’s unfair to leave car purchasers “on the hook.”
Sousa’s office stated that as soon as ServiceOntario became aware of this error in late May, it notified the finance ministry and “our government immediately took the necessary steps to resolve the situation.”