Crown corporation immune from taxation, but still might have to pay GST: Court
OTTAWA — The B.C. agency responsible for managing public-sector pension plan investments is constitutionally immune from remitting goods-and-services taxes related to those portfolios, the Supreme Court of Canada has decided.
However, the top court ruled Friday the British Columbia Investment Management Corporation, a Crown agency, still might be on the hook for GST payments to the federal government due to taxation agreements between B.C. and 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 Supreme Court of British Columbia that it was immune from federal excise taxes.