Finance committee  Can I...?

Finance committee  Good afternoon. My name is Pierre Mercille. I am the Director General, Legislation, Sales Tax Division, Finance Canada. As we said previously, Part 5 of the bill implements the Greenhouse Gas Pollution Pricing Act. Part 1 contains provisions that implement the carbon pricing s

Finance committee  Thank you very much. I will continue my presentation. Part 1 also contains obligations regarding the registration of persons who perform certain activities related to the fuels to be charged. A person who produces fuel in a listed province must register as a distributor. Someon

Finance committee  In part 1 of the bill, there are situations where some people will have the right to use exemption certificates. If you want to talk mainly about farmers, I can talk about farmers. As a general rule, as I explained in my presentation the other day, the people who pay the fuel le

Finance committee  As with other legislation administered by the Canada Revenue Agency, this system includes a self-assessment principle, a self-declaration principle. There is an advantage for farmers that I didn't mention. For others who are eligible to use the exemption certificate, the standar

Finance committee  The first criterion is whether or not an exemption certificate is presented to the distributor. If the distributor delivers fuel to a service station, the service station doesn't present an exemption certificate. Knowing this, the distributor will determine its selling price taki

Finance committee  If the transportation is between a location at a farm to another location at a farm—it doesn't have to be the same farm—the exemption certificate could be used to get the levy out on that fuel.

Finance committee  Well, I said both. It could be a farm truck or it could be a tractor or vehicle that is not licensed to operate on public roads.

Finance committee  They are not.

Finance committee  That's what the legislation provides.

Finance committee  The way this legislation was designed, there's a first part, the fuel charge part, and a second part, the output-based pricing system. The output-based pricing system is mainly an element that enables the making of regulations to implement the measures. In terms of the fuel char

Finance committee  In situations, which we don't think exist right now.... This is a piece of legislation. Yes, it's 200 pages, but it's going to apply to an infinitely complex situation in Canada in which fuel is distributed. There may be a situation in which there's a risk that there will be do

Finance committee  We're not here to comment on potential political situations that may happen in Canada. We're to describe the instrument that is presented before you. You just mentioned the GST and HST. This provision is not there to solve what you perceive to be an issue. It's a policy decision

Finance committee  I'm going to answer this, but I'm pretty sure you're not going to like the answer. Essentially, the government believes that the plan is legally sound. I'm not at liberty and no one on this panel is at liberty to discuss whether there was legal advice provided. If it had been pr

Finance committee  I can't really talk about the system in Quebec because I'm not familiar with it. What I can say is that under this regime, the fuel distributors are the people who are going to pay the charge. The fuel will be paid, if it's delivered in a listed province—a listed province being a