Finance releases Legislative Proposals Notice of Ways and Means for February 11, 2014 budget

March 24, 2014 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, What's New from the Charities Directorate of CRA, Canadian Charity Law, Global Giving, Ethics and Canadian Charities, Avoiding 'Charity' Scams

The Department of Finance has released the "Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures and Explanatory Notes". Some of the provisions were announced in the Budget such as changes to ecological gifts, cultural property, charity parking, gifts from the Iranian and Syrian government (and agents). 

However, there are also other provisions such as a requirement that Finance every year publish a list of "specific legislative proposal that the government has, ... publicly announced its intention to implement and that has not yet been enacted ...".  This is presumably to try and prevent the backlog of various technical amendments that had been announced but had not been passed.

You can read the documents at the Department of Finance website here.

Here are some of the explanatory notes from Finance:

Clause 4 - Payments for Volunteer Services  ITA 81(4)

Subsection 81(4) of the Act provides an exemption from income for the first $1,000 of amounts received by an individual from a government, municipality or public authority for the performance, as a volunteer, of the individual’s duties as an ambulance technician, a firefighter or a person who assists in the search or rescue of individuals or in other emergency situations. If an individual claims the Volunteer Firefighter Tax Credit for a taxation year under section 118.06, no amount of the individual’s income in respect of duties as a volunteer firefighter is exempt under subsection 81(4).  Subsection 81(4) is amended to provide that if an individual claims for a taxation year either the Search and Rescue Volunteer Tax Credit under new section 118.07 or the Volunteer Firefighter Tax Credit, the individual may not claim an exemption under subsection 81(4) for the year.  This amendment applies to the 2014 and subsequent taxation years.

Clause 5

Deduction for Gifts  - ITA 110.1(1)(d)

Paragraph 110.1(1)(d) of the Act provides for the deduction in computing a corporation’s taxable income of the eligible amount of an ecological gift made by the corporation.

An ecological gift is a gift of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real servitude) that is certified by the Minister of the Environment, or a person designated by that Minister, to be ecologically sensitive land, the conservation and protection of which is important to the preservation of Canada’s environmental heritage. The gift must be made to certain specified donees. A deduction is available in the taxation year that the gift is made or in any of the five subsequent taxation years.

Paragraph 110.1(1)(d) is amended to extend the five-year carryforward period to ten years.  This amendment applies to gifts made after February 10, 2014.

Clause 9 Definitions

ITA 118.1(1)

"total ecological gifts"

Subsection 118.1(1) of the Act provides a definition of the term "total ecological gifts". This definition applies for the purpose of the tax credit, based on the eligible amount of a gift, that is available to individuals under subsection 118.1(3).

An ecological gift is a gift of land (including a covenant or an easement to which land is subject or, in the case of land in the Province of Quebec, a real servitude) that is certified by the Minister of the Environment, or a person designated by that Minister, to be ecologically sensitive land, the conservation and protection of which is important to the preservation of Canada’s environmental heritage. The gift must be made to certain specified donees. A tax credit is available in the taxation year that the gift is made or in any of the five subsequent taxation years.

The definition "total ecological gifts" is amended to extend the five-year carryforward period to ten years.  This amendment applies to gifts made after February 10, 2014.

Clause 21 Qualified Donees

ITA 149.1

Section 149.1 of the Act provides the rules that must be met for charities to obtain and keep registered status. A registered charity is exempt from tax on its taxable income and can issue receipts which entitle its donors to claim tax relief for their donations.

Revocation of Registration of a Registered Charity

ITA 149.1(4.1)

Subsection 149.1(4.1) of the Act allows the Minister of National Revenue to revoke the registration of a charity in certain circumstances.

New paragraph 149.1(4.1)(f) is added to provide the Minister of National Revenue with authority to revoke the registration of a registered charity if it accepts a gift from a foreign state as defined in the State Immunity Act (including, per that definition, an agency of the foreign state) that is set out on the list referred to in subsection 6.1(2) of that Act. The Governor in Council may, by order, include a foreign state on the list if, on the recommendation of the Minister of Foreign Affairs made after consulting with the Minister of Public Safety and Emergency Preparedness, the Governor in Council is satisfied that there are reasonable grounds to believe that the foreign state supported or supports terrorism. At the time of the introduction of this paragraph in Parliament, those states were the Islamic Republic of Iran and the Syrian Arab Republic.  This amendment applies in respect of gifts accepted after February 10, 2014.

Revocation of Registration of a Canadian Amateur Athletic Association

ITA 149.1(4.2)

Subsection 149.1(4.2) of the Act allows the Minister of National Revenue to revoke the registration of a Canadian amateur athletic association in certain circumstances.

New paragraph 149.1(4.2)(d) is added to provide the Minister of National Revenue with the authority to revoke the registration of a registered Canadian amateur athletic association if it accepts a gift from a foreign state as defined in the State Immunity Act (including, per that definition, an agency of the foreign state) that is set out on the list referred to in subsection 6.1(2) of that Act. The Governor in Council may, by order, include a foreign state on the list if, on the recommendation of the Minister of Foreign Affairs made after consulting with the Minister of Public Safety and Emergency Preparedness, the Governor in Council is satisfied that there are reasonable grounds to believe that the foreign state supported or supports terrorism. At the time of the introduction of this paragraph in Parliament, those states were the Islamic Republic of Iran and the Syrian Arab Republic.  This amendment applies in respect of gifts accepted after February 10, 2014.

Refusal to Register

ITA 149.1(25)

Subsection 149.1(25) provides that the Minister of National Revenue may refuse to register a charity or Canadian amateur athletic association if the application is made by an ineligible individual, as defined in subsection 149.1(1), or an ineligible individual controls or manages the charity or association, directly or indirectly in any manner whatever, or is a director, trustee, officer or like official of the charity or association.

Subsection 149.1(25) is expanded to provide the Minister of National Revenue with the authority to refuse to register a charity or Canadian amateur athletic association that has accepted a gift from a foreign state as defined in the State Immunity Act (including, per that definition, an agency of the foreign state) that is set out on the list referred to in subsection 6.1(2) of that Act. The Governor in Council may, by order, include a foreign state on the list if, on the recommendation of the Minister of Foreign Affairs made after consulting with the Minister of Public Safety and Emergency Preparedness, the Governor in Council is satisfied that there are reasonable grounds to believe that the foreign state supported or supports terrorism. At the time of the introduction of this subsection in Parliament, those states were the Islamic Republic of Iran and the Syrian Arab Republic.

This amendment applies in respect of gifts accepted after February 10, 2014.

Clause 28

Where Taxpayer Information May be Disclosed

ITA 241

Section 241 of the Act prohibits the use or communication of taxpayer information except as otherwise permitted in that section or in certain other provisions in the Act. Subsection 241(4) nevertheless authorizes a government official to communicate taxpayer information in very limited circumstances.

ITA 241(4)(d)

New subparagraph 241(4)(d)(xv) is added to allow taxpayer information to be provided to an official of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) solely for the purpose of allowing FINTRAC to evaluate the usefulness of information provided by FINTRAC to the Canada Revenue Agency (CRA) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Providing this information to FINTRAC may allow FINTRAC to improve the quality of the information provided by FINTRAC to the CRA.  This amendment comes into force on Royal Assent.

ITA 241(4)(s)

New paragraph 241(4)(s) is added to allow taxpayer information, that can reasonably be considered to be relevant to a determination of whether a reporting entity (defined in section 244.1) has complied with a duty or obligation under Part XV.1 of the Act, to be provided to an official of the Financial Transactions and Reports Analysis Centre of Canada, solely for the purpose of ensuring compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The paragraph will not allow the sharing of information that directly or indirectly reveals the identity of a client, as defined in section 244.1. This amendment is consequential on the introduction of the new reporting regime in respect of electronic funds transfers in Part XV.1.

This amendment comes into force on Royal Assent.

Serious Offences

ITA

241(9.5)

Taxpayer information may be shared with law enforcement authorities in very limited circumstances. For example, officials of the Canada Revenue Agency (CRA) may share taxpayer information with the police when those officials are seeking information from the police that is relevant to the CRA’s administration or enforcement of the Act. Information sharing with appropriate persons is also permitted where the taxpayer information relates to an imminent danger of death or physical injury to any individual.

The Act requires taxpayers to report certain information to the CRA (e.g., in annual income tax returns). The Act also allows the CRA to demand information from taxpayers, and inspect their books and records and other documents, for the purposes of administration and enforcement of the Act. The CRA is not generally permitted to use this authority for other purposes, such as to assist law enforcement authorities in the course of criminal investigations.

However, there are occasions when CRA officials, in the course of their ordinary duties, become aware of information that a reasonable person would believe is evidence of the commission of a crime. Section 241 currently prevents the CRA from, on its own initiative, communicating such evidence to law enforcement authorities.

New subsection 241(9.5) responds to the 14 October 2010 recommendation of the Council of Fiscal Affairs of the Organisation for Economic Co-operation and Development (OECD) that member countries, in accordance with their legal systems, establish an effective legal and administrative framework and provide guidance to facilitate reporting by tax authorities of suspicions of serious crimes arising out of the performance of their duties, to the appropriate domestic law enforcement authorities. More specifically, subsection 241(9.5) permits a government official to provide taxpayer information to a law enforcement officer (e.g., a police officer) of an appropriate police organization (domestic or foreign) when the official has reasonable grounds to believe that the information will afford evidence of a listed offence. This provision does not provide the CRA with a mandate to use the information-collection authorities in the Act to conduct, or assist in the conduct of, criminal investigations. Nor does it permit the sharing of information on the basis of mere suspicion of the commission of a criminal offence.

Non-Application of Subsection 248(35)

ITA 248(37)

Subsection 248(37) of the Act provides exceptions to the application of subsection 248(35). In general, subsection 248(35) deems the fair market value of certain donated property to be the lesser of the actual fair market value of the property and its cost to the donor. This is relevant in, among other things, determining the eligible amount of a gift under subsection 248(31). By virtue of paragraph 248(35)(a), subsection 248(35) applies to donated property acquired by the donor as part of a gifting arrangement that is a tax shelter.

Subsection 248(37) excepts donated property from subsection 248(35) if it is an ecological gift, inventory, real property situated in Canada, a publicly-traded security or, under paragraph 248(37)(c), cultural property the value of which is certified by the Cultural Property Export Review Board.

Paragraph 248(37)(c) is amended to provide that the exception in subsection 248(37) will not apply to certified cultural property that was acquired by the donor as part of a gifting arrangement that is a tax shelter.  This amendment applies to gifts made after February 10, 2014.

Charity Parking

ETA - Sch. V, Pt. V.1, section 1

Section 1 of Part V.1 of Schedule V to the Act exempts all supplies of property and services made by a charity that is not a public institution as defined in subsection 123(1) of the Act, except those supplies listed in paragraphs (a) to (n). Public institutions are public colleges, universities, school authorities, hospital authorities and local authorities determined to be a municipality for all purposes of Part IX of the Act that are also a registered charity or registered Canadian amateur athletic association within the meaning of the Income Tax Act.

Section 1 is amended by adding new paragraph (o) to exclude from exemption supplies of parking spaces when the three conditions in each of subparagraphs 1(o)(i) to (iii) are met.

New subparagraph 1(o)(i) provides as the first condition for exclusion from exemption that the supply of a parking space be made for consideration, by way of lease, licence or similar arrangement and in the course of a business carried on by the charity that makes the supply. For example, a supply of a parking space by a charity would continue to be exempt under section 1 if it is a supply that is not made in the course of a business of the charity.

New subparagraph 1(o)(ii) provides the second condition for exclusion of a supply of a parking space from exemption, which is based upon the expected use of the specified parking area in relation to the supply of the parking space. The new term "specified parking area" in relation to the supply of a parking space is defined in section 1 of Part VI of Schedule V to the Act. In order for this second condition to be met, it must be reasonable to expect, at the time when the supply of the parking space is made, that the specified parking area in relation to the supply of the parking space will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing property of, or facilities or establishments operated by, persons that are a municipality, a school authority, a hospital authority, a university or a public college. For example, this condition would be met if it is reasonable to expect when a supply of a parking space is made that the specified parking area in relation to the supply of the parking space will be used primarily during the calendar year by students, faculty or other individuals accessing a university campus or either a university or a public college campus.

New subparagraph 1(o)(iii) provides the third condition for exclusion from exemption which can be met in any of the three ways described in new clauses 1(o)(iii)(A) to (C).

Under new clause 1(o)(iii)(A), this third condition can be met if the charity that makes the supply of a parking space is expected under its governing documents to use a significant part of its income or assets for the benefit of any particular municipality, school authority, hospital authority, university or public college, or several of them, in relation to which the reasonable expectation for use of parking spaces condition in new subparagraph 1(o)(ii) is met. For example, this condition would be met if it is reasonable to expect when a supply of a parking space is made by a charity that the specified parking area in relation to the supply of the parking space will be used primarily during the calendar year by patients, staff or other individuals accessing a public hospital operated by a hospital authority and under the charity’s bylaws it can be expected that a significant part of the charity’s income or assets will be used for the benefit of the hospital or the hospital authority.

Under new clause 1(o)(iii)(B), the third condition for exclusion from exemption can be met if the charity that makes the supply of a parking space and a particular entity that is a municipality, school authority, hospital authority, university or public college in relation to which the reasonable expectation for use of parking spaces condition in new subparagraph 1(o)(ii) is met have entered into one or more agreements in respect of the use of the parking spaces by the individuals who are accessing a property of, or a facility or establishment operated by, the particular entity. For example, this condition would be met if it is reasonable to expect when a supply of a parking space is made that the specified parking area in relation to the supply of the parking space will be used primarily during the calendar year by students, staff, and other individuals accessing a public college facility and a charity that makes the supply and the public college have entered into an agreement, with each other or other entities, reserving some of the parking spaces for use by employees who work at the public college.

Under new clause 1(o)(iii)(C), this third condition can also be met for a supply of a parking space by a charity if a particular municipality, school authority, hospital authority, university or public college in relation to which the reasonable expectation for use of parking spaces condition in new subparagraph 1(o)(ii) is met performs any function or activity in respect of supplies by the charity of parking spaces in the specified parking area in relation to the supply of the parking space (e.g., snow removal or deduction of fees for parking at the specified parking area from employee wages).

This amendment applies to any supply made after March 21, 2013.

A special rule is provided in respect of supplies of parking spaces made after March 21, 2013 (the day on which Economic Action Plan 2013 was tabled) and on or before January 24, 2014. In particular, a supply of a parking space made after March 21, 2013 and on or before January 24, 2014 is only excluded from exemption under section 1 of Part V.1 of Schedule V if the supply is both included under new paragraph 1(o) of Part V.1 and meets the conditions set out in paragraphs (a) and (b) of subclause 56(2). The conditions in those paragraphs (a) and (b) are similar to new subparagraphs 1(o)(ii) and (iii) respectively, but apply on the basis of parking spaces situated at a particular property instead of parking spaces in a specified parking area.

A supply of a parking space that is excluded from exemption under section 1 may still be an exempt supply if the supply meets the conditions for exemption set out in new section 7 of Part V.1 of Schedule V to the Act, which provides an exemption for certain supplies of hospital parking made by a charity.

Hospital Parking

ETA Sch. V, Pt. V.1, section 7

New section 7 of Part V.1 of Schedule V to the Act exempts the supply (other than by way of sale) made by a charity of a parking space for hospital parking when the three conditions in each of paragraphs 7(a) to (c) are met. The new definition "specified parking area" in relation to a supply of a parking space in section 1 of Part VI of Schedule V to the Act applies for purposes of references to this term in new section 7.

New paragraph 7(a) provides the first condition for exemption which can be met in either of the two ways described in new subparagraphs 7(a)(i) and (ii).

Under new subparagraph 7(a)(i), this first condition can be met if all of the parking spaces in the specified parking area in relation to the supply of the parking space are reserved for use by individuals who are accessing a public hospital. A supply of a parking space that allows use of any vacant parking space in a parking lot where all of the parking spaces in the parking lot are reserved for individuals accessing a public hospital is an example of a supply that would meet this first condition for exemption by reason of new subparagraph 7(a)(i).

Under new subparagraph 7(a)(ii), the first condition can also be met based upon the expected use of the parking spaces in the specified parking area in relation to the supply of the parking space. In order for the first condition to be met by reason of this subparagraph, it must be reasonable to expect, at the time when the supply of the parking space is made, that these parking spaces will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a public hospital. For example, this first condition for exemption would be met by reason of new subparagraph 7(a)(ii) for a supply that allows use of any vacant parking space in the parking lot that is the specified parking area in relation to the supply if the parking spaces in that parking lot can, at the time when the supply is made, reasonably be expected to be used, during the calendar year in which the supply is made, primarily by patients, staff and visitors accessing a public hospital.

New paragraph 7(b) provides the second condition for exemption which is that none of the circumstances set out in new subparagraphs 7(b)(i) to (iii) apply to the supply. A supply of a parking space would not meet this second condition for exemption by reason of new subparagraph 7(b)(i) if all or substantially all of the parking spaces in the specified parking area in relation to the supply are reserved for use other than by individuals accessing a public hospital otherwise than in professional capacity. For example, a supply of a parking space would not meet this condition for exemption if all or substantially all of the parking spaces in the specified parking area in relation to the supply were reserved for the use of students attending a university or staff of a public hospital.

A supply of a parking space would not meet the second condition for exemption by reason of new subparagraph 7(b)(ii) if the supply of the parking space, or the consideration for the supply, is conditional on the parking space being used by a person other than an individual accessing a public hospital otherwise than in a professional capacity. For example, a supply of a parking space by way of sale of a parking pass that can be obtained only by university students, or that is available at a reduced consideration if for use of hospital employees but at full price if for use of hospital patients, would not meet the second condition for exemption.

A supply of a parking space would not meet the second condition for exemption by reason of new subparagraph 7(b)(iii) if the agreement for the supply is entered into in advance, the period over which parking spaces can be accessed under the supply is more than twenty-four hours and the access to the specified parking area in relation to the supply is to be used by a person other than an individual accessing a public hospital otherwise than in a professional capacity. For example, a supply of a parking pass to allow a family member of a public hospital patient to access a parking lot over a period of one month while visiting the patient would meet the second condition for exemption whereas a supply of the same pass to allow a nurse to access the parking lot while working at the public hospital would not.

New paragraph 7(c) provides the third condition for exemption, which is that no election made by the supplier of the parking space under section 211 of the Act is in effect, in respect of the property on which the parking space is situated, at the time tax would become payable under Part IX of the Act in respect of the supply if it were a taxable supply.

This amendment applies to any supply made after March 21, 2013.

A special transitional relieving measure applies if an amount was collected by a charity as or on account of tax and applicable to a supply of a parking space made after March 21, 2013 and on or before January 24, 2014 and if the supply is exempt by reason of new section 7 of Part V.1 of Schedule V. Under the relieving measure, the amount is deemed not to have been collected as or on account of tax for purposes of determining the net tax of the charity. This deeming rule has the effect of relieving the charity from the obligation to remit the amount or, if the amount has been remitted, allowing the charity to recover the amount as a refund under section 261 of the Act.

A further special rule applies if an amount is subject to the deeming rule discussed above and that amount has been taken into account in assessing the net tax of a charity under section 296 of the Act. In these circumstances, the amount could not be refunded to the charity under section 261 of the Act. The special rule allows the charity to request in writing, within one year after the enactment of new section 7 of Part V.1 of Schedule V, that the Minister of National Revenue assess, reassess, or make an additional assessment of, the net tax to take into account the effect of the deeming rule and, if a request is made, provides for an assessment, reassessment or additional assessment to be made.

Clause 59 Definitions

ETA Sch. V, Pt. VI, section 1

Section 1 of Part VI of Schedule V to the Act sets out definitions of terms used throughout the Part.

"specified parking area"

The definition "specified parking area" in relation to a supply of a parking space is added to section 1 of Part VI of Schedule V. This new definition applies for the purposes of new section 25.1 of Part VI of Schedule V to the Act and new paragraph 1(o) and new section 7 of Part V.1 of that Schedule. These provisions require a determination of whether certain conditions are met for the specified parking area in relation to a supply of a parking space.

The specified parking area in relation to a supply of a parking space means all of those parking spaces that could be chosen for use in parking under the agreement for the supply of the parking space if all of those parking spaces were vacant and not reserved for any specific users. For example, if under the supply of a parking space an individual parker can use any of the parking spaces in a parking lot that are vacant, then all of the spaces in that parking lot would be the specified parking area in relation to the supply. If in the previous example, half of the parking spaces in the lot were reserved for use by staff of a public hospital and half for hospital patient parking, all of the parking spaces in the lot would be included in the specified parking area in relation to the supply of the parking space even if the individual parker were a hospital patient and could therefore only use those spaces reserved for patients.

This amendment is deemed to have come into force on March 21, 2013.

Clause 60

Hospital Parking

ETA

Sch. V, Pt. VI, section 25.1

New section 25.1 of Part VI of Schedule V to the Act exempts the supply (other than by way or sale) made by a public sector body of a parking space for hospital parking when the three conditions in each of paragraphs 25.1(a) to (c) are met. The new definition "specified parking area" in relation to a supply of a parking space in section 1 of Part VI of Schedule V to the Act applies for purposes of references to this term in new section 25.1.

New paragraph 25.1(a) provides the first condition for exemption which can be met in either of the two ways described in new subparagraphs 25.1(a)(i) and (ii).

Under new subparagraph 25.1(a)(i), this first condition can be met if all of parking spaces in the specified parking area in relation to the supply of the parking space are reserved for use by individuals who are accessing a public hospital. A supply of a parking space that allows use of any vacant parking space in a parking lot where all of the parking spaces in the parking lot are reserved for individuals accessing a public hospital is an example of a supply that would meet this first condition for exemption by reason of new subparagraph 25.1(a)(i).

Under new subparagraph 25.1(a)(ii), the way the first condition can be met is based upon the expected use of the parking spaces in the specified parking area in relation to the supply of the parking space. In order for the first condition to be met by reason of this subparagraph, it must be reasonable to expect, at the time when the supply of the parking space is made, that these parking spaces will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a public hospital. For example, this first condition for exemption would be met by reason of new subparagraph 25.1(a)(ii) for a supply that allows use of any vacant parking space in the parking lot that is the specified parking area in relation to the supply if the parking spaces in that parking lot can, at the time when the supply is made, reasonably be expected to be used, during the calendar year in which the supply is made, primarily by patients, staff and visitors accessing a public hospital.

New paragraph 25.1(b) provides the second condition for exemption which is that none of the circumstances set out in new subparagraphs 25.1(b)(i) to (iii) apply to the supply. A supply of a parking space would not meet this second condition for exemption by reason of new subparagraph 25.1(b)(i) if all or substantially all of the parking spaces in the specified parking area in relation to the supply are reserved for use other than by individuals accessing a public hospital otherwise than in a professional capacity. For example, a supply of a parking space would not meet this condition for exemption if all or substantially all of the parking spaces in the specified parking area in relation to the supply were reserved for the use of students attending a university or staff of a public hospital.

A supply of a parking space would not meet the second condition for exemption by reason of new subparagraph 25.1(b)(ii) if the supply of the parking space, or the consideration for the supply, is conditional on the parking space being used by a person other than an individual accessing a public hospital otherwise than in a professional capacity. For example, a supply of a parking space by way of sale of a parking pass that can be obtained only by university students, or that is available at a reduced consideration if for use of hospital employees but at full price if for use of hospital patients, would not meet the second condition for exemption.

A supply of a parking space would not meet the second condition for exemption by reason of new subparagraph 25.1(b)(iii) if the agreement for the supply is entered into in advance, the period over which parking spaces can be accessed under the supply is more than twenty-four hours and the access to the specified parking area in relation to the supply is to be used by a person other than an individual accessing a public hospital otherwise than in a professional capacity. For example, a supply of a parking pass to allow a family member of a public hospital patient to access a parking lot over a period of one month while visiting the patient would meet the second condition for exemption whereas a supply of the same pass to allow a nurse to access the parking lot while working at the public hospital would not.

New paragraph 25.1(c) provides the third condition for exemption which is that no election made by the supplier of the parking space under section 211 of the Act is in effect, in respect of the property on which the parking space is situated, at the time tax would become payable under Part IX of the Act in respect of the supply if it were a taxable supply.

This amendment applies to any supply made after January 24, 2014.

Financial Administration Act  Clause 31

Tabling of List – Legislative Proposals

FAA 162

New section 162 of the Financial Administration Act requires the Minister of Finance to table in the House of Commons, on or before its fifth sitting day after October 31 of each year, a list of every specific legislative proposal that the government has, since the last general election and before the beginning of the previous fiscal year, publicly announced its intention to implement and that has not yet been enacted, or made, in substantially the same form as the proposal or in a form that reflects consultations and deliberations relating to the proposal.

This requirement applies with respect to specific legislative proposals to amend:

the Income Tax Act and the Income Tax Regulations;
the Income Tax Conventions Interpretation Act;
the Excise Tax Act and any regulations made under that Act;
the Excise Act, 2001 and any regulations made under that Act;
the Air Travellers Security Charge Act and any regulations made under that Act;
the Excise Act and any regulations made under that Act; and
the Customs Tariff and any regulations made under that Act.

This list will not include a specific legislative proposal that has been publicly withdrawn or an announcement of a general intention to develop a specific legislative proposal. Comfort letters issued by the Department of Finance do not constitute specific legislative proposals publicly announced by the government and will not be included in the lists that are tabled in the House of Commons. The Minister will not be required to table if there are no specific legislative proposals that qualify for inclusion on the list.

For example, a government elected in October 2015 would be required to table a list on or before the fifth sitting day of the House of Commons after October 31, 2017. This list would set out any specific legislative proposals that the government has publicly announced since the election and before April 1, 2016 (and that have not been implemented or withdrawn). The government would table another list on or before the fifth sitting day of the House of Commons after October 31, 2018. This list would set out specific legislative proposals announced by the government since the election and before April 1, 2017 (and that have not been implemented or withdrawn).

New section 162 comes into force on Royal Assent.

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