The Chief Electoral Officer Needs Better GST Advice
On December 31, 2009, the Ontario Court of Justice issued a decision in Conservative Fund Canada v. The Chief Electoral Officer. The case is unusual because the Chief Electoral Officer is refusing to accept revised filings by Conservative Fund Canada (on behalf of the Conservative Party of Canada) relating to goods and services tax (GST) rebates received from the Receiver General of Canada and accept a repayment of monies after adjustments. In short, the Conservative Party is trying to give back money and Elections Canada is refusing to accept the repayment. Conservative Fund Canada went to court to force the Chief Electoral Officer to accept the repayment.
Mr. Justice H.J. Wilton-Siegel wrote a good decision; especially in light of the fact that the Superior Court of Justice does not see many GST cases as most GST cases are within the jurisdiction of the Tax Court of Canada. In the end, Mr. Justice Wilton-Siegel agreed with Conservative Fund Canada and agreed that the Chief Electoral Officer should accept the revised general election expenses returns to give effect to the GST rebates. The decision does not order the Chief Electoral Officer to accept a repayment (however, the effect of the revised filings would require a repayment of the difference).
To read the decision of the Ontario Court of Justice, please go to the following link - http://tinyurl.com/yl9o9sl
On January 29, 2010, the Globe & Mail newspaper reported that the Chief Electoral Officer filed an appeal still not wanting to accept the money after the Ontario Court of Justice gave the green light.
I will not comment on the merits of the case as I have not yet determined whether my firm acts for any of the parties involved in the proceedings. I will, however, say that it is obvious from the letter written by the Chief Electoral Officer that is reproduced in the decision that it was not written by a commodity tax lawyer. I continue to be amazed at the lack of understanding of basic GST concepts and the procedural facts that may help answer some of the basic questions. It is clear that the Chief Electoral Officer has made assumptions.
Th other fact that jumps out from the pages of the decision is that Conservative Fund Canada took the step to obtain a ruling from the Canada Revenue Agency, GST/HST Rulings Directorate. These bureaucrats deal with the GST legislation and the CRA's administrative policies on a daily basis. A ruling can help a taxpayer make an informed decision. A ruling can also be technically incorrect and that is why there are many GST objections/appeals that are appealed to the Tax Court of Canada.
Without giving away too much, the morale of this case is that the advice of a lawyer with specialize expertise is missing and, maybe, the dispute could have been avoided if advice was sought.
