The Supreme Court of Canada is seen Friday April 25, 2014 in Ottawa. (Adrian Wyld/The Canadian Press)

B.C. Crown corporation immune from taxation, but may still have to pay GST: court

British Columbia Investment Management Corporation may still be on hook for GPS payments

The Supreme Court of Canada says the B.C. agency responsible for managing public-sector pension plan investments is constitutionally immune from remitting the goods-and-services tax to the federal government.

However, the top court says the British Columbia Investment Management Corporation, a Crown agency, still might be on the hook for GST payments due to agreements it signed with Ottawa.

The management corporation had been ordered to pay almost $40.5 million in GST, plus interest and penalties, for delivering investment-management services for pooled portfolios.

The corporation then sought a declaration from the B.C. Supreme Court that it was immune from federal excise taxes.

A B.C. judge ruled the federal government could not order the corporation to remit the GST on the basis that, as an agent of the provincial Crown, it enjoyed the same immunity from federal taxes as the province.

The judge however also found the corporation was bound by taxation agreements it had signed, but even after Friday’s Supreme Court of Canada ruling the nature of any specific obligations under those agreements remains unclear.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

MISSING: VicPD seeks 33-year-old man last heard from in August

Scott Grier could have been travelling in Alberta, police say

March to protect old growth, stop industrial logging coming to B.C. Legislature

Organizers say they want to give frontline communities a bigger say in nearby logging

New Sooke businesses popping up, amid turbulent market

‘I’m not quitting on these guys’, says company owner

Sooke girl who battled cancer hosting bottle drive for Tour de Rock

Event planned under Sooke’s SEAPARC sign on Sept. 19 from 8 a.m. to 4 p.m.

West Shore RCMP seize rifle, dozens of replica firearms from Langford home

Suspect is 62-year-old man with a lengthy criminal record, say police

Record-breaking 165 new COVID-19 cases diagnosed in B.C. in 24-hour period

Fifty-seven people are in hospital battling the novel coronavirus

B.C. releases details of $1.5B economic recovery plan, $660M in business tax incentives

Economic plan includes support for employers, as well as training for workers

‘Not criminally responsible’ hearing slated for man convicted of Abbotsford school stabbing

Gabriel Klein was found guilty in March of killing Letisha Reimer, 13, in 2016

B.C.’s 1st mental health and addictions minister won’t be seeking re-election

MLA Judy Darcy is the fifth cabinet minister not intending to run in the next election

Remote B.C. tourism lodge staffed for coastal clean up instead of wilderness tours

The Great Bear Rainforest is home to exotic wildlife — and international trash

Vancouver’s shuttered aquarium searching for financial solution amid pandemic

The aquarium needs about $1 million a month to cover its costs

Most Read