HST termination details
See attached a copy of the CITCA (HST) agreement between Canada and British Columbia.
· Every five years, the HST will be reviewed by both governments. (III, 14).
· After two years from the date of implementation, the Province may modify its 7% portion of the tax (IV, 16)
Annex C (p. 45) refers specifically to transitional funding, a “material breach”, and the “Day of Indemnity” repayment that would result from it.
Annex C, Section 10:
A Party will, prior to giving written notice to the other Party that the Party considers theother Party to have committed a material breach of the Agreement, consult with the other Party
in respect of the material breach and, during that consultation, discuss the circumstance or
action that, in the Party’s opinion, constitutes the material breach by the other Party.
Annex C, Section 14:
If, within 180 days of Canada’s provision of an Effective Notice in respect of a material
breach, the material breach has not been remedied or cured, the Province will indemnify
Canada in an amount equal to the portion of the Assistance Amount (referred to as the
“Indemnity”) that the Province received under the Agreement. The Parties agree that, on the day
(referred to as the “Day of Indemnity”) that is 180 days after Canada’s provision of the Effective
Notice, the Indemnity will become immediately due and payable by the Province as a debt due
to Canada. The Parties acknowledge that the Indemnity provided for under this clause is to
compensate Canada for its loss and the impact on national economic growth and job creation.
Read more attached...
0 comments:
Post a Comment