As you are aware, the Province of Ontario will harmonize the existing 8% provincial sales tax (PST) with the 5% federal goods and services tax (GST) effective July 1, 2010. The Ontario harmonized sales tax (HST) will merge the existing PST and GST, for a combined rate of 13%. Generally, the new HST will apply to the provision of goods and services in the same manner as GST currently applies. Currently, legal fees and certain disbursements are only subject to the 5% GST. However, effective July 1, 2010, legal fees will be subject to the full 13% HST. Likewise, those disbursements which are currently subject to the 5% GST will be subject to the 13% HST. By way of example, certain disbursements, such as government filing fees for incorporating a corporation, are not currently subject to the 5% GST and will likewise not be subject to the 13% HST. For our business clients who are currently permitted to claim input tax credits in respect of GST, the new tax should have a minimal impact on your business as a full input tax credit should be available for HST paid on taxable goods and services, subject to certain restrictions. However, HST will result in increased costs for those clients who are not able to claim input tax credits. It is important to note that any Canadian clients outside Ontario may be subject to the “place of supply” rule. Generally, if the billing address of the client is outside Ontario, the client will be subject to the sales tax rules of the outside province. In an effort to reduce confusion regarding the applicable rates, where appropriate, we will be producing and mailing interim accounts for work completed up to and including June 30, 2010.