On March 25, 2010, TEI filed a letter urging the Canada Department of Finance to permit sufficient time for companies to implement the new harmonized sales tax regime. TEI's letter follows amendments proposed by the Department of Finance on February 25, 2010. The amendment relates to the harmonized sales tax (HST), including place of supply, self-assessment and rebate, and the imported taxable supply rules relating to the provincial component of the HST in regulations under the Excise Tax Act.
TEI's comments address the timeframes for issuing guidance, the absence of controlling guidance, the resulting uncertainty for business, and the increased complexities that arise with the proposed changes. TEI urges the Department to release regulations and obtain approval from the Governor in Council as soon as possible to permit sufficient time for companies to implement the new HST regime.
TEI's comments were prepared under the aegis of it's Canadian Commodity Tax Committee, whose chair is Diana M. Spagnuolo.