Tax struck down as unconstitutional
NEWSLETTER OF THE CANADIAN BAR ASSOCIATION, On February 26, 1993, the B.C. B.C. BRANCH Supreme Court struck down the six per cent social services tax on legal services as unconstitutional. Mr. Justice Kenneth Lysyk found the wording of amendments to the Social Services Tax Act vague and said they offended section 7 of the CharFeb. 1993 ter of Rights (liberty of the person). "This tax on consumers of legal services has been a burden
Clark announced his intention to reintroduce the legislation and to make the social services tax apply retroactively. The CBA (B.C. Branch) and the Law Society of B.C. strongly oppose the reintroduction of the tax in any form. 0
since it came into effect on June 1, 1992," said CBA (B.C. Branch) president Rob Gourlay. "Affordable legal services are a necessity, not a luxury. We challenged the tax because it was unfair." Lawyers have been required to collect the tax from clients on fees and disbursements.
A bulletin is included with this issue of BarTalk to provide you with additional infonnation on the court challenge.
In a March 1, 1993 media release, Minister of Finance Glen
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Strength of membership accomplishes common goals VOLUME 5 Lawyers and their clients across British Columbia have good NUMBER 2 reason to be pleased with the recent court decision striking
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down the government's six per cent Social Services tax on legal services. At the urging of Provincial Council in April, 1992, we sought legal advice and instituted the court challenge on the basis of that advice, and on the initiative of Wendy Baker, our Branch president at that time. Our members showed their support by contributing some $50,000 to fund the challenge. We had three reasons for fighting the tax: 1) The tax was unfair to consumers of legal services, imposing a further burden (on top of the seven per cent GST) in the way of people who require essential services;
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2) The tax was selective, unfairly singling out legal services for taxation; and
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3) The tax was costly for lawyers to administer.
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Rob
Gourl~y
B.C.Branch President 1992/93
By working on behalf of our 7,500 members, in conjunction with the Law Society of B.C., we were able to defeat this legislation. The government now says it intends to introduce a revised Social Services tax but at the very least, the new legislation will exempt all legal services which are performed at any time before April1, 1993 and which are billed after February 25. Please turn to page 2