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

Abbotsford’s rolled-over dairy truck lost 40,000 Litres of milk, recovery valued at over $500,000

Truck removed Sunday, Jan. 19, with specialized equipment to upright vehicle

Rebel Pizza has landed in Abbotsford

New pizza restaurant allows users to customize the toppings on their pizza

Pooches Jasper and Jake bring comfort to Abbotsford Police Department

Comfort dogs there for cuddles and play time when needed

Hospital patient pleads guilty to dumbbell assault of nurse in Abbotsford

Neale Heath admits to assault causing bodily harm in attack last September

Abbotsford wrestlers earn gold at Miri Piri Championship

W.J. Mouat Hawks take home top team prize, many locals reach podium

VIDEO: Trudeau insists Iran respect families’ wishes when it comes to burials

All 176 people on board the Ukraine International Airlines flight PS752 were killed

Elderly pedestrian killed in Vancouver crash with Surrey delivery van

Elderly woman was in marked crosswalk with husband when she was hit

B.C. asks health-care staff to be ‘vigilant’ when screening for coronavirus

This comes after U.S. health officials confirmed a case of the virus in Washington State

University of Victoria tells stories of Holocaust survivors with graphic novels

International storytelling initiative launched first meetings this winter

Boy, 13, arrested after alleged assault involving girl at B.C. middle school

Boy alleged to have used ‘inappropriate levels of force’ to injure the girl

B.C. player becomes only second Canadian to enter Hall of Fame of Baseball

Walker received 76.6 percent of the Baseball Writers of America Association vote

PHOTOS: Heavy snowfall breaks window, causing avalanche into B.C. newsroom office

It was a chaotic start to the week for the Kitimat Northern Sentinel

Deer carcass strung up at Surrey fire hall prompts investigation

Investigation underway following complaint a Surrey firefighter hung a deer carcass in a fire hall

Most Read