B.C. NDP Party Hopes to Prevent Passage of HST Legislation

The British Columbia Times Colonist newspaper is reporting that the New Democratic Party (NDP) in British Columbia is planning to use any means available to prevent the passage of Bill 9 - 2010 "The Consumption Tax Rebate and Transition Act" that was tabled in the British Columbia Legislature on March 30, 2010. That being said, the fist vote relating to the Bill passed 47 to 34 due to the number of seats held by Premier Campbell's Liberal Government. So, while the NDP's plans to stop the unpopular HST legislation should be welcomed by the electorate, they should not expect to be saved from HST.

The report indicates that the NDP leader, Carole James, plans to use legislature procedures to have a debate. The NDP plan to table amendments to Bill 9-2010 and take their allotted speaking time in the Legislature. The hope is at least a one month delay,

The Ontario Progressive Conservative Party, lead by Tim Hudak, tried unsuccessfully to delay the passage of the Ontario version of the HST legislation using similar legislative mechanisms.  However, Bill - 218  Ontario Plan for More Jobs and growth Act, 2009" passed in Ontario in December 9, 2009.

The unfortunate reality is that HST is going to be a reality soon - very soon.  The late passage of legislation in British Columbia will not help businesses prepare.  In fact, if the delay tactics successfully take a month or more, HST collection obligations may have already kicked in -- as of May 1, 2010.  Businesses must collect HST on supplies of property and/or services if:

(1) the contract is entered into after April 30, 2010

(2) the property and/or services are to be delivered after July 1, 2010, and

(3) consideration is paid after May 1, 2010

It is also unfortunate that the place of supply rules have been released in administrative statement format only (as of April 1, 2010).  The regulations have not been promulgated by the Federal Government.  As a result, as of April 1, 2010, businesses do not have sufficient information to ensure they are ready as of May 1, 2010 or even July 1, 2010.  Something that should be discussed is a period of leniency by the Canada Revenue Agency regarding enforcement.

This Blog/Web Site is made available by Cyndee Todgham Cherniak and Cyndee Todgham Cherniak Professional Corporation for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your province.

The law firm McMillan LLP does not have any connection with this Blog/Web Site.

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Comments (1) Read through and enter the discussion with the form at the end
Muhammad Younas - April 29, 2010 5:13 PM

Majority of British Columbians are against this Horrible Sales Tax(HST)and the provincial Government should listen to the people.But Gordo and team seldom believe in democracy.We need to fight it at all political /Legal levels-rallies/seminars/signing the petition compaign/ referendum and even "STAY ORDER FROM THE COURT".

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