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P.E.I. issues warning on border shopping

Last Updated: Monday, November 19, 2007 | 1:28 PM ET

The P.E.I. government has launched an ad campaign to remind Islanders that if they cross a border to shop or order products from out of province online, they still have to pay provincial sales tax.

'Anyone that is declaring goods coming across the border, those reports do eventually come to our office.'— Jim Ramsay, tax commissioner

The campaign is in response to an increase in Canadians shopping in the United States due to the strong Canadian dollar. However, it also applies to things bought in other provinces.

Provincial tax commissioner Jim Ramsay told CBC News on Monday that Islanders are required to notify the taxation department of out-of-province purchases, and if they don't the department will likely find out.

"I don't know if police is the right word or not, but there are different sources of information that comes to our office regarding the transportation of goods into the province," said Ramsay.

"One obvious way is customs. Anyone that is declaring goods coming across the border, those reports do eventually come to our office. It would indicate who purchased or transported the goods."

Ramsay noted clothes are exempt from P.E.I. provincial taxes but other items are not, regardless of where they're bought. It doesn't matter if you've already paid taxes in the province or state where you bought your items.

The newspaper ads regarding out-of-province purchases began on the weekend.

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