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

Security video captures Castlegar porch pirate

Man stole package from front of house in December

RCMP still investigating body found between Nelson, Castlegar

Halimi’s body was found between Nelson and Castlegar in May 2018

Castlegar Rebels come from behind to beat Nitehawks

The Rebels earned victory over the first-place Beaver Valley Nitehawks, but fell against Golden

Two big housing projects planned for Castlegar

A mix of single family and multi-family units planned

Four things ‘not’ to do if you run into Prince Harry and Meghan in B.C.

Here is a list of some things you definitely should NOT do, according to the BBC

B.C.-based Coulson Aviation C-130 crashes in Australia

Three people are confirmed dead in the crash in New South Wales

New nasal spray launched in Canada to combat hypoglycemic shock in diabetics

Baqsimi is a nasal spray contains three milligrams of glucagon

B.C. RCMP spent roughly $750K on massive manhunt for Port Alberni men

Manitoba RCMP helped with 17-day search through the province’s northern terrain

Future space homes could be made of mushrooms

NASA explores use of fungi to build structures in space

Man killed by police in Lytton called 911, asking to be shot: RCMP

Howard Schantz, also known as Barry Schantz was killed following a standoff at his Lytton home

Canadian public health agencies ramping up preparations in response to new virus

Health officials have said there are no confirmed cases of the emerging coronavirus in Canada

‘Naughty boy’: Monty Python star Terry Jones dies at 77

The comedian has been suffering from a rare form of dementia

Most Read