The Globe and Mail

Former B.C. premier Bill Vander Zalm and fellow anti-HST activists have launched a court action to kill the tax.

On the steps of the B.C. Supreme Court on Monday, Mr. Vander Zalm said the tax should be struck down because it violates “core constitutional principles,” including no taxation without representation.

In a petition filed Monday, Mr. Vander Zalm argues the specific Comprehensive Integrated Tax Coordination Agreement between Victoria and Ottawa to lead to the HST was not ratified by the B.C. legislature.

According to the petition, because the agreement did not originate in the legislature and has not been approved there, it runs contrary to the section of the constitution that requires this sequence of events.

“In every province in Canada that adopted the HST, it was their legislatures that enacted the tax, involving the whole democratic process, not simply a stroke of the finance minister's pen – but that is exactly what happened in B.C.,” Mr. Vander Zalm said.

He said this latest move was prompted by last week’s legal action launched by a business coalition whose members include the Council of Forest Industries and BC Chamber of Commerce.

The business coalition argues Elections BC should not have allowed the anti-HST petition to move forward because it aims to force the province to extinguish the federally created HST, which it cannot do. The petition against the 12-per-cent tax – a blend of the provincial sales tax and the federal goods and services tax – has garnered more than 700,000 signatures and is now under review by Elections BC.

If Elections BC concludes the petition passes muster under the Recall and Initiative Act, the government must either hold a referendum or put the matter to a vote of the legislature.

Chris Delaney, the lead organizer for the Fight HST group central to Mr. Vander Zalm’s efforts, said the court action announced Monday is independent of the petition.

“It’s important to understand. This will challenge the legality of the tax itself in British Columbia. The petition, of course, challenges the political viability of the tax, whether the people want it or they don’t,” Mr. Delaney told reporters. “This is sort of the big showstopper. If this thing goes through, that’s the end of the tax.”

Attorney-General Mike de Jong said in an interview that he was reluctant to comment in detail on a matter that was before the courts. However, he said the question raised by Mr. Vander Zalm’s legal action is one the government considered in developing its approach to implementing the HST. “We’re confident we’re on firm legal footing,” he said Monday.

Vancouver lawyer Joe Arvay, who is handling the matter for Mr. Vander Zalm, told reporters there are strong legal grounds for the case – “I wouldn’t have taken it if I didn’t think it was a strong challenge” – and that he hopes to have it before the courts by Aug. 1.

“We consider this to be a relatively urgent matter,” he said. “We’re going to try to get into court as soon as possible, and we’ll be seeking an order of the court to strike down the order in council that authorized the minister of finance to enter into the agreement which brings the HST in British Columbia and declare that agreement a nullity and of no force and effect.”

Mr. Vander Zalm and his associates in the anti-HST movement attending the news conference said they were raising funds to pay for the legal action, but would not comment in detail on their financing.