B.C. alters health structure to avoid $3.5-million HST bill

[CHIMO]

After almost a year of arguing that the harmonized sales tax is good for the economy, the B.C. government has redrawn part of its organizational chart to avoid a $3.5-million HST bill.

The Ministry of Health Services and the CEOs of the provincial health authorities have agreed to tuck the Shared Services Organization, which provides services such as computer support and bulk purchasing for the health sector, under the wing of one of the health agencies.

Without that change, the health authorities would be paying more money for the services provided by the agency. Although its staff, structure and mandate are the same, the Shared Services Organization will now be exempt from a higher tax rate once the HST comes into effect on July 1.

B.C. Finance Minister Colin Hansen has maintained the move to adopt the HST – a blend of the provincial sales tax and the federal goods and services tax – is the single most important change he can make to help the provincial economy grow.

http://www.theglobeandmail.com/news/national/british-columbia/bc-alters-health-structure-to-avoid-35-million-hst-bill/article1561355/

Wonder what NAFTA will say about that?