Canadian operators fume over rebate cowboys

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Border operators fear unregulated rebate companies are taking customers away from their stores and have asked the Canada Customs and Revenue Agency for tighter restrictions

Border store operators in Canada have voiced concerns over unregulated companies offering tax rebate services to tourists. The business, which offers foreign visitors to Canada refunds on sales taxes on purchases over C$50, was traditionally reserved for border stores, where travellers would often spend the money refunded on duty-free goods.

The unregulated rebate offices are drawing away customers that would otherwise be visiting stores for the service, and retailers fear that the companies are taking advantage of tourists by getting them to sign away their power of attorney and taking a cut of the refund. Duty-free operators are prohibited from charging for the service by the Canadian Customs and Revenue Agency (CCRA).

Members of the Frontier Duty Free Association raised the issue with a representative from CCRA's visitor rebate program at the FDFA convention in Toronto last week. He promised to look into their concerns, although he could give no details of how the agency intended to deal with the companies in the future.

See the FDFA show report in DFNI December 1, out next month, for more detail.