Evidence of meeting #51 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agreed.
A video is available from Parliament.
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Yes, we're on page 161.
Clause 110 is a consequential amendment to the e-commerce provision. It provides a penalty for providing false information to a platform. For example, someone who rents short-term accommodation provides a registration number when they don't have one, they would be essentially trying elude the payment of tax, and there's a penalty here.
Liberal
The Chair Liberal Wayne Easter
Shall clause 110 carry on division?
(Clause 110 agreed to on division)
( On clause 111)
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Clause 111 is an amendment consequential to the e‑commerce provisions. It deals with the requirement to keep records, and allows the Minister of National Revenue to relax the general condition that, if GST and HST are payable, the records must be kept in French and English, and in Canada.
Liberal
The Chair Liberal Wayne Easter
Shall clause 111 carry?
(Clause 111 agreed to on division)
( On clause 112)
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Clause 112 is a consequential amendment to e-commerce. It deals with the definition of “business number”. It makes a cross-reference to the new simplified registration number, as the business number is usually part of the registration number.
Liberal
The Chair Liberal Wayne Easter
Shall clause 112 carry on division?
(Clause 112 agreed to on division)
(On clause 113)
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Clause 113 is an amendment that is consequential to the e-commerce provision. Since there's a new penalty that's being created, as a consequential amendment there's a rule that excludes that type of penalty—because it's similar to other penalties existing under the act—from a limitation period.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Do I understand you to say that there is no limitation on the penalty, timewise?
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
In this provision, there's a rule that limits penalties—I don't have it in my head right now—and this one excludes that rule from the limitation on penalties.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Why would that be? Why would it be different from other ones?
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Essentially, it's because it's similar to other ones that are already listed in this provision in sections 280.1, 285 and 285.01. This one would add section 285.02. It's very similar to existing provisions for the normal GST rule, but in this case, it's in the case of e-commerce.
Liberal
The Chair Liberal Wayne Easter
Okay.
Shall clause 113 carry on division?
(Clause 113 carried on division)
(On clause 114)
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Clause 114 is the measure that was announced in the fall economic statement, 2020, to relieve face masks, and face shields from the GST and HST.
Conservative
Ed Fast Conservative Abbotsford, BC
Should we call a recorded vote on this? What do you think, Mr. Chair?
Liberal
Liberal
The Chair Liberal Wayne Easter
We could even call for a standing vote, Ed.
(Clause 114 agreed to on division)
(On clause 115)
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Clause 115 is a relieving amendment.
Currently, if you export goods from Canada, they're usually not subjected to GST/HST, but the freight transportation service from a place in Canada to a place outside Canada is usually also relieved. In this case, it's adding driving services to the definition of freight transportation services. CRA was of the opinion that because the provision used the word “transportation”, if you exported a vehicle, essentially the vehicle had to be towed or on top of another vehicle.
Liberal
The Chair Liberal Wayne Easter
Shall clause 115 carry on division?
(Clause 115 agreed to on division)
(On clause 116)
Director General, Sales Tax Division, Tax Policy Branch, Department of Finance
Clause 116 is similar to an amendment I previously described on the new housing rebate. This is the provincial part of the rebate applicable to new housing in Ontario. It works just like the amendment on the GST. If there are two names on a title of ownership, one of those people must use the property as a principal residence.
Liberal
Liberal
The Chair Liberal Wayne Easter
All right. We're starting part 3, with amendments to the Excise Act, 2001.
There are no amendments for clauses 117 to 125. Do we want to see them all as one group?
Conservative
Ed Fast Conservative Abbotsford, BC
We'll do them separately, Mr. Easter. This is good; this is working well.