In 2003, Dugald Christie, a Vancouver lawyer, challenged the constitutional validity of the provincial sales tax (PST) on legal services under the Social Service Tax Act. After two lower court rulings, the Supreme Court of Canada ruled that the Province of British Columbia has the power to impose PST on legal services. [See British Columbia (Attorney General) v Christie, 2007 SCC 21]

In October 2007, the Consumer Taxation Branch of the Ministry of Small Business and Revenue issued a Notice to Taxpayers regarding the provincial sales tax (PST) on legal services. While waiting for the Supreme Court of Canada ruling, the Province said eligible low-income individuals did not have to pay the PST on legal services. Therefore, if you paid the PST and you meet the eligibility criteria, you will be eligible for a refund.

The Consumer Taxation Branch can also be contacted directly at 604.660.4524 in Vancouver or toll-free at 1.877.388.4440, or by email at CTBTaxQuestions@gov.bc.ca.

For more information about the CBA's campaign to eliminate the tax on legal services visit www.cba.org/bc/home/2006/sst_update.aspx.

[posted November 8, 2007]