A Short Discussion on QST in the House of Commons
On April 22, 2010, the following exchange took place in Canada's House of Commons during Question Period, that might amuse harmonized sales tax watchers:
Question:
Pierre Paquette, BQ, Joliette, Quebec:
Mr. Speaker, if Quebec achieves sovereignty, then we will have 100% of the power, not just 22%.
According to Quebec's finance minister, Raymond Bachand, negotiations on compensation for harmonizing the QST and the GST are at a standstill because the Conservative government is demanding that Quebec give up its legislative power over taxation. This is another attack against the Quebec nation. The federal government owes Quebec $2.2 billion. It should give Quebec the same treatment as Ontario and British Columbia and reimburse this money.
Why require such an act of submission and resignation from Quebec?
Response:
Ted Menzies, Cons., Parliamentary Secretary to the Minister of Finance:
Mr. Speaker, I would like to thank that hon. member for reminding us that Quebec has not actually harmonized its sales tax. Negotiations continue in good faith with the finance minister of Canada and the finance minister of Quebec. We continue to hold out for a good discussion, and we would ask the hon. members to go back and talk to their colleagues in Quebec.
The truth is that Ontario and BC are giving up their rights to certain provincial taxation on the CITCAs. Pierre Paquette would do a service to Quebec and Ontario/BC to convince the Government of Quebec to submit the question whether a CITCA (as drafted) is unconstitutional.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax