The answer is clear but I'm not satisfied.
Evidence of meeting #183 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was back.
A video is available from Parliament.
Evidence of meeting #183 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was back.
A video is available from Parliament.
Liberal
The Chair Liberal Wayne Easter
You're satisfied with the answer but you don't agree with it. Sounds good. That's normal around this town.
Go ahead.
Director General, GST Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
The next measure deals with the reassessment period in the case of requirements for information and compliance orders. This is found in clauses 50 and 51.
The measure introduced a new rule to extend the assessment period of a person by the period of time during which a requirement for information or a compliance order is contested.
Mr. McGowan explained that to you earlier in respect of part 1 of the bill. This measure is similar to the measure included in part 1 of the bill in respect of the Income Tax Act, and the amendments to the GST legislation are made to ensure consistency between the various tax statutes. I'm going to mention right now that a similar amendment is made in part 3 of the bill in respect of the various excise tax statutes.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Sorry. Taking notes on my previous question, I didn't find out which clauses it applies to. Can you please repeat that?
November 1st, 2018 / 10:20 a.m.
Liberal
The Chair Liberal Wayne Easter
The rebate for printed books is 47, and the reassessment period is 50 and 51.
Mr. Julian.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Can you give us a few moments to look at the clause numbers and references when you cite them? This is a complex topic.
Director General, GST Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
I'll do my best.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I know you have a clear understanding of all these matters. However, we need a little time to examine this document and therefore would appreciate you allowing us a little time so we can follow you more closely.
Director General, GST Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
The next amendment is clause 52.
Again, this measure is consequential to the amendment to the Income Tax Act in part 1 of the bill. Similar to the amendments in part 1 of the bill that Mr. McGowan explained to you earlier, the measure removes a restriction in part 9 of the Excise Tax Act to enable the sharing of tax information with Canada's mutual legal assistance partners in respect of acts that, if committed in Canada, would constitute serious crimes.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I have a question on that point.
How many countries have signed bilateral agreements with Canada or are affected by the Mutual Legal Assistance in Criminal Matters Act?
Director General, GST Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
I'm not sure I can answer you immediately, but we can get you that information later.
Director General, GST Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
As part of clause 52, there are two other amendments, and they are proposed to align the GST/HST legislation with the existing rules under the Income Tax Act.
First, the measure removes a similar restriction in part 9 of the Excise Tax Act to enable tax information to be disclosed to Canadian police officers in respect of serious offences where such disclosure is currently permitted under the Income Tax Act. Second, the measure removes a similar restriction in part 9 of the Excise Tax Act to enable tax information to be disclosed solely for the purpose of a provision contained in a tax treaty and, again, where such disclosure is currently permitted in respect of taxpayer information under the Income Tax Act.
I'm going to mention here that similar amendments are also included in part 3 of the bill in respect of the Excise Act, 2001, and this, again, is to ensure consistency among similar rules across various tax statutes.
That concludes my description of the amendments proposed under part 2 of the bill.
Liberal
The Chair Liberal Wayne Easter
On that last one, has there been any discussion with the Privacy Commissioner on any of this sharing of information?
Director General, GST Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
There was discussion in respect of the main amendment to the Income Tax Act, the MLACMA, the Mutual Legal Assistance in Criminal Matters Act.
I'm not sure about the last two I mentioned, because they're just essentially aligning with amendments to the Income Tax Act, and I don't know when those were made in the Income Tax Act and whether the consultation happened.
Brandon—Souris, CPC
Thank you, Mr. Chair.
You were talking about the mutual legal assistance partners. I'm assuming you were talking about countries. How many are there?
Director General, GST Legislation, Sales Tax Division, Tax Policy Branch, Department of Finance
This is a similar question to what Mr. Julian asked, so I think we can come back to the committee with that response.
Liberal
Gervais Coulombe Director, Sales Tax Division, Tax Policy Branch, Department of Finance
Thank you, Mr. Chair.
I'm here today to talk to you about the proposed measures on the taxation of fuels and cannabis. These measures are outlined in part 3 of the bill, which covers clauses 61 to 68 in the document you have before you.
The first measure is found under clause 61 of the bill, and it relates to fuel taxation. It is proposed that the excise tax refund in respect of diesel fuel used to generate electricity be expanded. The proposed measure was first announced as part of a broader consultation on tax legislative proposals in July 2018.
The Government of Canada applies an excise tax of 4¢ per litre on diesel fuel manufactured in or imported into Canada. The application of the excise tax on diesel fuel is relieved in specific circumstances, including for use in the generation of electricity. At present, only licensed manufacturers and licensed wholesalers can buy and sell excise-tax-exempt diesel fuel. Alternatively, end-users can claim a refund from the Canada Revenue Agency under eligible purchases from other vendors. However, these situations may create cash flow issues from some end-users and put other vendors at a competitive disadvantage vis-à-vis licensed wholesalers and licensed manufacturers.
To level the playing field among all vendors, this measure amends the Excise Tax Act to expand the refund regime to allow a vendor to apply for a refund where a purchaser would use excise-tax-paid diesel fuel to generate electricity if certain conditions are met. These conditions include, among others, that the quantity of diesel fuel delivered by the vendor to the purchaser be at least 1,000 litres and that the purchaser certify that the diesel fuel is to be used exclusively to generate electricity. This measure comes into force upon royal assent to the enabling legislation.
Liberal
The Chair Liberal Wayne Easter
Are there any questions on that?
Does this mainly apply up north, or is it all over? Where diesel is used to generate electricity up north, does it apply there, or...?
Director, Sales Tax Division, Tax Policy Branch, Department of Finance
This is broader than just the north. You have all the municipalities, hospitals and farmers who have backup generators. That measure, actually, was a request from the industry, from the western provinces where you have a lot of big generators that are....
Liberal
The Chair Liberal Wayne Easter
They use them for electricity generation. Okay. Thank you.
Mr. Poilievre.
