FORT ST. JOHN, B.C. – Members of the NEBC Resource Municipalities Coalition held meetings in Vancouver recently with the BC commission on Taxation Competitiveness.
The meetings were held with Resource Works, Independent Contractors and Business Association (ICBA) and the BC LNG Alliance.
The Northeast BC Resource Municipalities Coalition has recommended that BC follow Saskatchewan’s lead and adopt the system of dealing with out-of-province contractors. Fort St. John Mayor Lori Ackerman as well as Taylor Mayor Rob Fraser, Bill Streeper (Northern Rockies Regional Municipality) and Coalition Executive Director Colin Griffith suggested the idea at a meeting with the BC Commission on Taxation Competitiveness.
The coalition said the Saskatchewan model would help make the playing field level for BC contractors that are in Northeastern BC who compete for contracts in the oil and gas sector.
The Coalition made four recommendations to the BC Commission on Taxation Competitiveness:
1. Increase level of monitoring and enforcement of BC tax laws.
2. Develop and implement a Public Awareness Campaign about BC’s tax rules.
3. Establish a process to enable the public to access non-confidential information.
4. Review and amend existing legislation and regulations to enhance the ability of the Ministry of Finance to monitor and enforce the payment of provincial sales tax by non-resident companies.
In Saskatchewan, non-resident contractors are required to register and post a bond to cover taxes and fees required by the Province of Saskatchewan. The model they currently use is seen by contractors as fair, efficient, and effective.
The BC Commission on Taxation Competitiveness will reportedly make recommendations to the government this fall. They want to make sure that BC’s tax legislation and policies allow BC companies to compete on a level-playing field with non-resident companies.