GST-HST interlining fiasco

The implementation of the HST is not as “smooth” as many might think, especially for interliners. (Interliners are lease/owner operators who run inter provincially under someone else’s running rights, they either own a truck and trailer or just a truck, they are GST zero rated, not collecting GST but able to get their GST/HST refunded)
Take the implementation of HST on an interlining highway tractor leased from a financing company. In New Brunswick the department of motor vehicle DEMANDS that all interliners show proof of HST paid. They even demand it from provinces that do not participate in HST. They demand it even though interliners already pay IRP (a pro-rated form of PST). Hold that fact.
Our federal GST auditors (when auditing interlining operators) some times refuse the ITC application of HST to lease payments (acknowledging only the 5% GST portion not the provincial portion). That means that some auditors force some operators to not only pay IRP at the time of annual registration but PST on lease payments as well. You need a good accountant to fight through this conflict.
The rejection of the HST to an interliner should not occur by an educated federal GST auditor. However, the application of HST is not a universally understood concept by our federal employees (especially in some regions of Canada). Regardless of federal shortcomings this conflict shouldn’t be present anyway. The New Brunswick DMV must be educated to the workings of inter provincial applications of GST/HST in light of IRP. Specifically there MUST be an exception made.
In summary, the DMV in the province of New Brunswick (or any other province that demands HST for interliners) is forcing the administration of HST on financing companies from other provinces. It is needless, redundant and it exposes the lease/owner operator to auditors who weave their own ignorance. Need we remind the DMV again, the province already gets their “PST” through the IRP. Demanding it through HST as well is, in my opinion, an opportunity for Provincial DOUBLE DIPPING. The province may use the application to manipulate the federal numbers so it receives a higher reimbursement than it should. At face value that’s what it looks like. If (for some reason) the province DOSN”T account for the interliners HST in their submission to federal administrators, then why is the DMV demanding extra provincial financing companies to charge HST?
Lets get this straight, either educate the HST DMV’s or the NON HST GST auditors.
Skidoosh!