The BC Blueberry Council is suing one of its members, Purewal Blueberry Farms Ltd., claiming that Purewal is not passing on levies collected from growers that are intended for the blueberry council.
All blueberry growers pay a 0.8 cent levy per pound to the blueberry council to fund its work. Growers pay that fee to what the blueberry council calls “first receivers” – processors who pack, grade, ship, sell, distribute or process the blueberries.
Purewal Blueberry Farms Ltd. is a first receiver both of its own blueberries and berries that it buys from other growers.
As a result of B.C. regulations (Blueberry Industry Development Fund Regulation, BC Reg 226/89), Purewal is required to deduct levies on behalf of the blueberry council from the proceeds otherwise due to the growers.
It is then required to, by October 31 of each crop year, pay those levies to the blueberry council together with information about the corresponding growers’ names and addresses, the amount of product received from each grower and the total levy deducted and in a separate line itemizing the harmonized sales tax (HST).
Purewal would be eligible to hold back a 5% administration fee if it submits those forms and money by October 31. If it is late filing the forms or paying bills, it is not eligible to collect that fee. The blueberry council alleges that Purewal failed to submit all of the levies it collected on behalf of the blueberry council to the blueberry council by October 31, 2010.
After multiple requests, Purewal finally reported that it received 12,254,086 pounds of blueberries from all growers and that it levied $98,032 plus $11,763 charged to growers for a total levy of $109,796, alleges the blueberry council.
Purewall paid $50,000 of that amount to the blueberry council as of September 6, 2011, the blueberry council claims.
“Purewal continues to fail or refuse to remit the balance of the 2010 unpaid levies to the blueberry council,” reads the statement of claim.
The blueberry council is seeking:
•damages;
•a declaration that Purewal is holding upaid levies; and
•an order that Purewal pay the unpaid levies together with the growers’ names and other necessary information.
