Why Did B.C. Politicians Ask Ex-Aids for HST Advice and Not HST Lawyers and Accountants?
I find it rather odd that the British Columbia Liberal Government would hire ex-political aids to assist with harmonized sales tax (HST) issues and not highly qualified and knowledgeable lawyers and accountants who have practiced in the area during implementation. Sean Holman reported in today's Globe and Mail newspaper in "Firms with B.C. Liberal ties awarded secret contracts in Pro-HST Campaign" that a number of contracts were awarded to provide advice and guidance regarding HST. None of those contracts were awarded to law firms or accounting firms or HST specialists who I know.
According to the Globe and Mail article, the contracts were not awarded after an open solicitation. Good - I did not miss the opportunity.
However, this is bad for the B.C. taxpayer because it is not certain that the government received the best value for the money spent. The B.C. Government would have received knowledgeable and expert advice from an HST lawyer or accountant. Professionals who have advised clients regarding the GST rules since 1991 (and even before) would have valuable insight. Professionals who have advised clients about the HST rules since the 1997 implementation in New Brunswick, Nova Scotia and Newfoundland/Labrador would have valuable insight. Professionals who assist clients appeal GST/HST assessments to the Tax Court of Canada would have valuable insights. Professionals who sit on the Canadian Bar Association, National Sales Tax, Customs and Trade Section (I am the vice-chair) would have valuable insights. Professionals who meet with the Canada Revenue Agency and Department of Finance about GST/HST provisions, amendments and interpretation would have valuable insights. Professionals who have advised clients of B.C. social services tax would have valuable insights. Professionals who actually lived through implementation with clients and have first hand knowledge of the good, bad and ugly elements of HST would have valuable insights.
So - why not ask for their advice? Was the government really seeking people who will agree with them and not professionals who would help them with the real issues?
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax