The Supreme Court of Canada will hear four appeals this week, three civil and one criminal. The appeals concern whether the British Columbia Investment Management Corp. must collect and pay GST; whether an Ontario professional corporation had “knowing participation” in a massive fraud; and in Quebec, whether a naturopath was guilty of manslaughter in the death of a patient and whether a journalist must disclose her sources.
May 13 – British Columbia – A.G. of Canada v. British Columbia Investment Management Corp.
Constitutional law: B.C. Investment Management is a provincial Crown corporation incorporated under the Public Sector Pension Plans Act; it also holds property respect in trust. As a provincial Crown corporation, it benefits from B.C.’s immunity from federal taxation in to its property. The majority of the funds held by bcIMC are investments of the five B.C. public-sector pension plans, in pooled portfolios. bcIMC does not collect GST on investment management services for pooled investment portfolios, but it does for other clients who have money in other portfolios. bcIMC was assessed for GST and asked by the attorney general of Canada to pay $40.5 million. The corporation argues it is not subject to payments under the Excise Tax Act but is bound by the Reciprocal Tax Agreement and the Comprehensive Integrated Tax Coordination Agreement, which may require it to collect and remit certain taxes.