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

VIDEO: Internet famous Yukon-based bhangra dancer explores Vancouver Island

Gurdeep Pandher spreads joy through dance, forms cross-cultural connections amid pandemic

Avoid giving dogs ice cubes, says Greater Victoria vet

Tips for keeping dogs cool and safe this summer

GVPL staggers reopening of three more branches in Oak Bay, Saanich and Victoria

More Greater Victoria Library branches to reopen in August

Hungry Hearts Gala goes virtual with new mac and cheese competition

Results will be announced on Facebook live stream event

Gaps in the system: Youth cope with homelessness in Greater Victoria

Four-part series will look at youth homelessness in the region

53 new COVID-19 cases, no new deaths cap off week of high infection rates in B.C.

Roughly 1,500 people are self-isolating because they either have COVID-19 or have been exposed to it

Unofficial holidays: the weird and wonderful things people celebrate around the world

On any given day of the year, there are several strange, silly or serious holidays to observe

Missing teen visiting Courtenay found safe

She had last been seen going for a walk on Aug. 6

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

Fitness non-profit challenges citizens to invent a game to be physically active

The campaign was launched after a study showed only 4.8 per cent of children and youths in Canada met required standards of the 24-hour movement guidelines

Gene editing debate takes root with organic broccoli, new UBC research shows

Broccoli is one of the best-known vegetables with origins in this scientific haze

VIDEO: U.S. Air Force pilot does fly-by for B.C. son amid COVID border separation

Sky-high father-son visit plays out over White Rock Pier

3 Vancouver police officers test positive for COVID after responding to large party

Union president says other officers are self-isolating due to possible exposure

Vancouver Island team takes on wacky challenges of world’s largest scavenger hunt

Greatest International Scavenger Hunt taking place Aug. 1-8

Most Read