Just Purchased a BMW - Sales Tax Inquiry
I live in Scarborough and I'm getting an e36 on Monday. Im going to the MTO office on Monday to get it registered, plated etc. Im buying this car privately and understand that I have to pay a retail sales tax of 8% on either the purchase price or the vehicle's wholesale value, whichever is more.
Heres the thing. The wholesale value listed on the Used Vehicle Package for this car is $2900. Im actually paying $6000 for the car as its in mint condition and mechanically sound.
How much should I tell the MTO I purchased it for? If I say I payed something near the wholesale value I'll be saving myself a few hundred dollars in taxes. Does the MTO investigate or ask for proof of the purchase amount? I know theres the Bill of Sale but can't I write a lower amount, and pay the seller the real price? I'm hoping the MTO just goes by the amount listed on the Bill of Sale.
This is my first time buying a car so any help is much appreciated.