VANCOUVER (NEWS1130) – The provincial government is now sending out information bulletins to help businesses transition back to the old tax system next year, but concerns linger.  The Canadian Federation of Independent Business says thousands of businesses will be clamouring for information at the same time.

Business owners will have a three-month period to register for the Provincial Sales Tax before it returns on April 1st.  It is replacing the Harmonized Sales Tax, which was rejected by voters in a referendum last year.

“It’s a tight timeline for sure, and what we’re most concerned about is that the government has the staff available to answer the questions,” says Laura Jones with CFIB.  “Because we know that there are transitions to a new kind of tax, even when you have a transition to a different tax rate, those call centres are going to be very busy.

“We get a lot of those calls into our office,” she adds.  “We certainly get ourselves prepared for that and we’re hoping government will do the same.  Sometimes there can be a lot of frustration if you’re getting busy signals or the people on the other end of the line don’t have the information you need.”

Jones adds business owners are going to be looking for information like, “what do I need to do to be in compliance with the PST?”  She notes there are thousands of businesses out there that have never dealt with that tax system before because they began operating after the introduction of the HST.

The 12 per cent HST was introduced July 1st, 2010 to replace the seven per cent PST and the five per cent federal Goods and Services Tax (GST).  The provincial government said the HST would simplify paperwork for business and save money.  Many voters were angered by the change because the government had previously stated it was not considering changes to the tax structure.

A successful petition drive in early 2010, lead by former Premier Bill Vander Zalm, prompted a provincial referendum on the future of the HST.  In August of 2011, nearly 55 per cent of voters decided to scrap the HST.  The provincial government then announced a lengthy transition period with the old system returning in April of 2013.

The provincial government says numerous resources are now available for businesses dealing with the upcoming transition.  Services include:
 
·         One-on-one consultations with a ministry tax specialist – submit a request online.
·         Calling a toll-free number with questions about the new PST (1 877 388-4440).
·         Emailing questions to CTBTaxQuestions@gov.bc.ca.  

Over the coming weeks and months, businesses will be able to participate in online webinars and in-person seminars. Government has reached out to chambers of commerce and business associations to offer presentations with information businesses will need to prepare for the transition.

Links to these bulletins and notices, the online sign-up form for the one-on-one tax consultations and the federal transitional rules, along with additional information about the return to the PST, can be found in the business section of: www.PSTinBC.ca