RCC Submission
February 7, 2006
Introduction
There are 103,000 businesses registered collectors of PST in British Columbia. Of those, 30,280 — nearly a third — are retail establishments which have a direct stake and a keen interest in the outcome of the Provincial Sales Tax Review. Not only do they collect PST, our members devote many person-hours per week to tracking, accounting and remitting PST.
Retail Council of Canada (RCC) commends the B.C. government for undertaking this long-overdue review and for affording the opportunity to contribute the perspective of our members. They represent all sizes and formats of retail and are found in virtually every corner of the province.
The stated objectives of streamlining, simplifying and enhancing the fairness of the provincial sales tax system are laudable and necessary, and we look forward to working with government toward the development of tangible outcomes.
Retail Council of Canada respects that one of the mandates of this Review is revenue neutrality. It will come as no surprise, however, that our members retain the view that the gradual reduction of the PST must be a government priority. This submission's silence on the issue of PST reduction is only out of consideration for the scope of the current Review.
We see this Review as an extension of the spirit of tax reform that took root in the development of the Taxpayer Fairness and Service Code. It is our hope that the Code's principles and performance standards and objectives will enhance the general framework of fair, equitable and efficient tax administration in British Columbia, but especially in the area of compliance audits where our members continue to report some issues. We are encouraging them to utilize the Code as a key vehicle for addressing these issues and are monitoring progress. Consequently, the audit process will not be an issue raised in this particular submission while we reserve the right to raise the issue with the Ministry of Small Business and Revenue at a later time.