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MacBytes
Jul 28, 2005, 02:12 PM
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Category: News and Press Releases
Link: Supreme Court of Canada: No levy on Apple iPods (http://www.macbytes.com/link.php?sid=20050728151235)

Posted on MacBytes.com (http://www.macbytes.com)
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mkubal
Jul 28, 2005, 03:13 PM
Gotta love taxes based upon an assumption that you will commit a crime. At least the court saw through it.

That $4 million needs to be returned to the people that paid the "you're probably guilty" tax.

the_mole1314
Jul 28, 2005, 04:54 PM
And the world was safe yet again.....

CanadaRAM
Jul 28, 2005, 04:59 PM
Gotta love taxes based upon an assumption that you will commit a crime. At least the court saw through it.

That $4 million needs to be returned to the people that paid the "you're probably guilty" tax.
Remember, it's not a tax, it's a levy...

The people who paid were the companies that imported the devices, as that's where the levy was applied. They may have either swallowed the cost or increased their wholesale price to the retailer to compensate. There would be no way to make a 1:1 link to a price paid by the consumer and the pass-along, if any, of the levy in the wholesale price.

IIRC the crux of the decision wasn't whether a levy on blank recording media was legal or not (it clearly still is) but whether the hard drive or flash memory built within a player was divisible from the player itself and definable as blank recording media.

shamino
Jul 28, 2005, 05:34 PM
The court is absolutely correct. An iPod is a player, not a recording medium. The fact that it has internal storage is irrelevant. So does your computer, but (I assume) they aren't imposing this levy on all computers, right?

Loge
Jul 28, 2005, 06:58 PM
While the court appears to have made a sensible decision here; the idea of a levy on blank media remains a ridiculously blunt instrument, since there are many uses for blank media that do not involve copyright infringement.

Yvan256
Jul 28, 2005, 10:52 PM
Who do I contact to get my 20$CAN back? (from my 3rd gen. 10GB iPod)

SilvorX
Jul 29, 2005, 01:20 AM
Who do I contact to get my 20$CAN back? (from my 3rd gen. 10GB iPod)
someone from the same place where people contact to get their tax money back from the government scandal

the levy was a terrible idea, I purchased a 15GB iPod not long after the levy came to effect, after student discount, it was the same price (after taxes) as a prev gen 10GB iPod before the temporary tax came in

CanadaRAM
Jul 29, 2005, 01:32 AM
While the court appears to have made a sensible decision here; the idea of a levy on blank media remains a ridiculously blunt instrument, since there are many uses for blank media that do not involve copyright infringement.

Their rationale boils down to

"we took that into account. Instead of $5.00 per CD (roughly the publisher's/copyright return on a commerical music CD) you pay $0.21 per CD levy. That averages out the non-copyright uses against the copyright-infringing uses."

Squire
Jul 29, 2005, 04:01 AM
Remember, it's not a tax, it's a levy...

The people who paid were the companies that imported the devices, as that's where the levy was applied. They may have either swallowed the cost or increased their wholesale price to the retailer to compensate. There would be no way to make a 1:1 link to a price paid by the consumer and the pass-along, if any, of the levy in the wholesale price.

I seem to recall an asterisk pointing to an explanation of the higher prices on the Canadian online Apple store. Something like "price includes music device levy" or something. Anyone else ever see that?

(Checks current prices, converts, then compares.)

Okay, sales taxes aside, Canadians now pay about $8 more for a 20 GB iPod and $21 more for the 60 GB model. That's much, much more reasonable than what it used to be. I think it's safe to assume (but obviously difficult to prove) that the consumer was eating that extra charge.

Squire

<edit> Okay, I guess I wasn't dreaming about the former price discrepancy between Canadian and American Apple stores.

Canadian retailers such as Future Shop and Best Buy will reduce the price of all iPods in response to the recent Federal Court of Appeal decision throwing out the levy on music players with embedded memory...

http://www.itweaks.com/article.php/20041222211835560

If the consumer had not been paying the extra charge, why would the retailers reduce the price of the iPod after the court decision?

shamino
Aug 2, 2005, 02:11 PM
If the consumer had not been paying the extra charge, why would the retailers reduce the price of the iPod after the court decision?
All costs, no matter where they come from, ultimately are paid for by the consumer.

For example, when a county raises the property tax rate for commercial land, the gas station occupying that land will raise its price-per-gallon in order to pay that tax and remain profitable.

When the price of jet fuel goes up, so does airline tickets, air-freight prices, and the price of any goods that are normally shipped by air.

When the price of diesel goes up, so does the price of everything shipped by truck (which is almost everything.)

Similarly, if Canada slaps a $20 tax on iPods, the Canadian iPod customer is going to pay that tax. It may be a separate line-item on the receipt or part of the overall price, but it will be paid. Your pointing out that the prices are now dropping as a result of that tax going away proves this point.

Squire
Aug 2, 2005, 04:59 PM
Right. (That was a rhetorical question I was posing.) ;)

Squire

Lacero
Aug 2, 2005, 05:00 PM
Finally, some sanity....