Regulations Are Coming - How Soon - Very Soon
The federal HST implementing legislation does something unusual --- it permits a wide range of matters to be determined in the future by way of regulation. This means that the Department of Finance (with input from other government departments and agencies) will write the regulations and the Governor-in-Council (a.k.a. the ruling Cabinet) will promulgate the rules.
To date (May 19, 2010), no HST regulations (relating to Ontario and British Columbia harmonization) have been promulgated. We are told to expect three (3) sets of regulations soon. The first (likely the HST place of supply rules) will be promulgated (so we are told) by the end of May 2010. Two other sets of regulations should be promulgated around mid-June 2010. The regulations may include new penalties - so we are told.
Practitioners expect that the Department of Finance will post the regulations on their website www.fin.gc.ca. It may take up to 10 days for the regulations to be published in the Canada Gazette.
Yes, we are running out of time. Yes, the rules will apply to more provinces than just Ontario and British Columbia. Yes, businesses need to know the rules in order to prepare for HST. Yes, consumers want to know the rules. Yes, businesses will want to undertake transactions before July 1, 2010. Yes, the fact the regulations have not yet been promulgated is a problem. Yes, we should expect problems with the regulations because they regulations will not be subject to the scrutiny of opposition parties and the Senate. Yes, there will be a degree of trial and error.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
