I came across a curious observation the other day that kinda made me scratch my head a bit and wonder if it were really a legal practice.
Not intending to get anyone in trouble, I'll convey this in the abstract. Say a consignment or resale website offers an item for sale. They sell the item for a price *other* than that given by the consigner, but charge the *sales tax* on that original price. Is that cricket? On the surface, it seems the sales site is only going to report the actual price and remit sales tax accordingly, and quietly pocket the difference. Maybe I am being too cynical, but it almost seems dishonest.
EG Consigner posts item for sale for $100. Site sells item for $50, but computes sales tax on basis of original $100 price that was never actually paid. Doesn't seem cricket to me. Gives them a means to pocket difference between tax collected and tax actually paid.
Any legal beagles out there that can comment?
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