The Comprehensive Integrated Tax Coordination Agreement between British Columbia and Canada, signed by Colin ( it wasn’t on the radar) Hansen and Jim Flaherty in November 2009. ( PDF format- this document was removed from the BC government site )
** Note: In this agreement, it states that the provincial portion of the HST “may be increased, or decreased, in accordance with the provisions of this Agreement after a minimum period of two years from the Implementation Date. Following that two-year period, any change in the PVAT Rate in respect of the Province, as permitted under the provisions of this Agreement, will not occur more often than once in any twelve-month period. “
Which means that once a year, the province can not only decrease the tax if they wish, they could increase it as well…. something you may not be aware of.
Also of importance is this statement:
“Canada may propose any tax base change in respect of CVAT and the Province agrees to be bound by all tax base changes that are implemented in respect of CVAT.” CVAT refers to the federal portion of our HST.
“If there is a change to either the CVAT rate or the PVAT rate of a participating province in a tax entitlement year, the share of tax revenue of Canada and of each participating province for that tax entitlement year will be re-calculated to account for the rate change and be effective as of the effective date of the rate change.“
Meaning the CVAT – the federal part of the HST- can be changed as well. How often and how large, I can’t tell, but the way I read this agreement tells me that we have little say over whether or not the Feds can up their portion of the tax or not.
So sad for you, and me, and the rest of BC that are not aware of this agreement and what it means for sovereignty of this province. And every country that has had a Value Added Tax like our HST, has increased it greatly.
When you read the above link, read all of the first section, then fast forward to Annex’s ‘B’ and ‘C’ for some interesting info on transitional payments and changes to the either the federal or provincial parts of the HST.
A dire warning to all. Beware what promises are made now, that reduction will disappear, if in fact it occurs at all. They can turn around and raise that HST even higher than it is right now.
Read the agreement.
And of course, you must also take a look at the Reciprocal Taxation Agreement between British Columbia and Canada, signed June 30th, 2010, by Colin( it might have been on my desk) Hansen. ( again, PDF format)
Research, and educate yourself. Take part in your future, don’t sit back and let others do it for you~!