BC Hydro illegally adding GST to the Customer Crisis Fund (no matter how little the amount) – only makes it worse

The other day I called BC Hydro with regards to the Customer Crisis fund – you know, the one that the BC Utilities Commission approved BC Hydro charges us a fee to pay for the utility account of other customers who for whatever reasons are unable to pay their bill.

The reason I called though wasn’t my objection to the charge (although I did mention it) ... it was in fact because I became aware that we also pay GST on that charge.

Now, according to Turbo Tax, (https://turbotax.intuit.ca/tips/what-is-the-gsthst-credit-and-how-do-i-qualify-5500)

“The Goods and Services tax is a federal sales tax of 5 percent levied on most transactions in Canada, such as retail purchases, real estate sales, and personal services,” says Christopher Liddiard, certified financial planner with Investors Group in London, Ontario.

Seems pretty clear to me ... GST is charged on retail purchases, real estate sales, and personal services.

Is the Customer Crisis fund a retail purchase?  NO, it is not!

Is the Customer Crisis fund a real estate sale?  Definitely Not!
Is the Customer Crisis fund a personal service?  It certainly isn’t!

However, here is what I was informed by a BC Hydro Customer Service Supervisor whose name I will withhold for privacy:

When it comes to the GST portion from the Customer Crisis Fund charges, BC Hydro is following the Direction of the Excise Tax Act.  It requires us to charge 5% tax on all rate ‘categories’ (Under sub-section 165 (1)).  As the Customer Crisis Fund Rate Rider (1903) is one of these charges it is also subject to GST.

In actual fact, here is the quoted section of the Excise Tax Act, subsection 165 (1) https://www.fin.gc.ca/drleg-apl/ITABud06_1-eng.asp -- it specifically states:

Existing subsection 165(1) imposes tax on recipients of taxable supplies made in Canada at the rate of 7 per cent on the value of the consideration for the supply. (note, this tax is now actually 5%)

The fact of the matter is, nothing has been provided by BC Hydro under this mandatory charge.  It has been imposed upon us – it is NOT a Rate Category; it is instead a charge on a fee – and NO service is being provided.

Regardless of the amount of the tax (BC Hydro stated to me it is only 15 cents per year), the Excise Tax Act obviously and clearly DOES NOT give permission to charge GST on the Crisis Fund -- there is NO supply / supplies being provided.

Instead the Customer Crisis Fund is a source of revenue taken from 1.8 million residential customers, in order for Hydro to have someone else pay for delinquent accounts.

My current BC Hydro bill specifically indicates, TAXES ON ELECTRICITY USAGE ... GST 5% -- and even Hydro says the GST is being charged on Electricity usage.  If you care to take a look at your hydro bill, that includes the Basic Charge, Step 1 and Step 2 Energy Charges, and then without considering the mistake(?) they are making, they also charge (GST) on the Crisis Fund.

It is offensive to me that BC Hydro was ever given permission to tack this Crisis Fund charge on my bill in the first place – illegally adding GST to it (no matter how little the amount) – only makes it worse.

Finally -- I can only image the hundred fold costs that must be involved in calculating that additional tax on our Hydro bill. Get rid of the tax ... and better yet, get rid of thet fund. 

NO other business is allowed to charge me money to pay someone else’s bill, so why should an agency of the government?