January 28, 2010

Cost of Legal Services Expected to Rise in 2010!

Like most things with the passage of time goods and services become more expensive. In the legal world and in particular immigration law, this is especially true in 2010. Most fees in immigration, citizenship and refugee matters are what are referred to as block fees. Block fees include the cost of a lawyer’s and/or consultants time, clerk fees, legal secretary fees, photocopying costs, supply costs, postage fees and taxes among other costs and it is offerred to clients as a bundle or an “all in” fee. The imposition of Provincial Sales Taxes (PST)on legal services will result in an 8% tax increase. The new Harmonized Sales Tax (HST) is 13% and encompasses an 8% PST and a 5% Goods and Services Tax (GST). Previously clients were only charged 5% in taxes (GST only) for legal services. So a case that required a block fee of $2000.00 will now cost $2160.00. So immigration law firms will have to find creative ways to recoup the 8% increase while still providing affordable services to clients.

As of July 2010, we will all feel the difference.