International business tax-rebate controversy dogs leaders
The B.C. NDP on Friday called for the Auditor General to determine how much a controversial and little-known tax rebate program designed to lure international investment into the province is costing taxpayers. NDP Leader John Horgan said a government under his rule would refer B.C.’s International Business Activity program — whose beneficiaries were revealed this week to include TD Bank — to the Auditor General.
“We’re going to see what the Auditor General gets to and I’m fairly confident that if this is the tax giveaway we expect it to be, we’ll eliminate it, yes,” Horgan said during a campaign stop on Vancouver Island.
Controversy around the program — which started in 1988, but was expanded by the B.C. Liberal government in 2004 and 2010 — has followed B.C. Liberal Leader Christy on the campaign trail since Tuesday when the New York Times reported details of its investigation into the initiative.
On Thursday, Postmedia News reported a B.C. Court of Appeal decision that revealed TD Bank had won an appeal backing its claim for a $2.8 million rebate under the program in 2014, although it had
We need to grow those kinds of programs (that) attract head offices from around the world to B.C.
missed the deadline to apply for the benefit by one day.
Clark, at a campaign event in Richmond, said a Liberal government would “do what the courts say we need to do,” and pay the rebate while defending the program, which she maintained has given the province a bigger return than it has paid out in tax breaks.
“The program was always aimed at companies that are going to create jobs in British Columbia, (and) I guess the folks at finance decided (TD Bank) met that goal in order for them to eligible,” Clark said.
“Evidence is that it is helping create jobs,” Clark said. “We need to grow those kinds of programs (that) attract head offices from around the world to B.C.”
The New York Times investigation estimated that the program paid out $140 million in rebates to create about 300 jobs, though government has been secretive about what companies are getting the benefit.
This week Postmedia reported that the 2010 changes to the program offered a personal tax benefit to executives of Asian banks, raising concerns that the rebates may have pumped money into Metro Vancouver’s soaring real estate market. The program was started under the then Social Credit government and maintained for a decade under NDP government rule, but Horgan argued that rebate payouts were “in the minuscule millions” during the tenure of both parties, but expanded “by 1,000 per cent since (the B.C. Liberals) came into power.”
“We need to make sure that we’re not giving hard-earned tax money to profitable companies — companies, that I would add, provide sizable donations to the B.C. Liberal party,” Horgan said.