This Forward Regulatory Plan provides information on regulatory proposals that the Canada Revenue Agency (CRA) intends to propose or finalize in the next two years through:

• pre-publication in the Canada Gazette, Part I; and/or
• final publication in the Canada Gazette, Part II.

The Forward Regulatory Plan may also include regulatory initiatives that are planned to be brought forward over a longer time frame. Comments or enquiries can be made using the CRA contact information included with each regulatory initiative.

Regulatory Initiatives

Regulatory initiatives planned or anticipated to be proposed or finalized between 2023 and 2025:

Regulations Made Under the Income Tax Act

• Common Reporting Standard - Part XIX Information Return
• Miscellaneous Amendment – Amendment to the Income Tax Regulations – prescribed forms

Common Reporting Standard - Part XIX Information Return

Enabling Act: Income Tax Act

Description: In order to combat international tax evasion and avoidance, beginning in 2018, every Canadian financial institution is required to provide the Minister of National Revenue with information regarding their non-resident account holders by filing, with the CRA, a Part XIX information return on or before May 2nd of each year in an electronic format.

The Act currently provides for general penalties for failing to file on time or in the required format. However, since these penalties are considered to be excessive in cases where the non-compliance is with respect to large numbers of information returns, reduced penalties are available where numerous information returns of a type prescribed in the Regulations are filed late or not in electronic format by the same filer.

Amendments to the Income Tax Regulations are required in order to add the Part XIX information return to the existing lists of prescribed returns to which the reduced penalties apply.

Regulatory cooperation efforts (domestic, international): No regulatory cooperation efforts are required.

Potential impacts on Canadians, including businesses: The proposed amendment only affects one specific sector (financial institutions) and does not impose any additional administrative burden on that sector. The ‘One-for-One’ Rule and the small business lens do not apply.

The proposed amendment is relieving in nature in that it will allow a reduced penalty to be applied where a financial institution files a Part XIX information return late or not in electronic format.

Consultations: No further consultations are planned given that the requirement to file the information return is found in the Income Tax Act. This proposed amendment only affects one specific sector (financial institutions) and does not impose any additional administrative burden on that sector.

Further information:

• Guidance on the Common Reporting Standard
• Common Reporting Standard
• Part XIX Information Return – International Exchange of Information on Financial Accounts
• How to complete and file a Part XIX Information Return – International Exchange of Information on Financial Accounts slips and summary
• Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement

CRA contact:
Cornelis (Kees) Rystenbil
Manager, Federal and Provincial Legislative Affairs
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency
Email: Regulations-Reglements@cra-arc.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan: 2019-04-01

Miscellaneous Amendment – Amendment to the Income Tax Regulations – prescribed forms

Enabling Act: Income Tax Act

Description: The CRA is proposing to amend subsection 205(3) of the Income Tax Regulations (ITRs) to reflect the correct name of the Part XVIII Information Return – International Exchange of Information on Financial Accounts on the list of prescribed information returns subject to reduced late filing penalties. Currently the information return is listed as the International Exchange of Information on Financial Accounts Information Return (Part XVIII of the Act).

This proposal will align the correctly named reference of the prescribed form with that used in CRA publications.

Further information:

• Income Tax Regulation 205 – prescribed list
• Part XVIII Information Return – International Exchange of Information on Financial Accounts

CRA contact:
Cornelis (Kees) Rystenbil
Manager, Federal and Provincial Legislative Affairs
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency
Email: Regulations-Reglements@cra-arc.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan: 2021-07-30

Consult the CRA’s acts and regulations web page for:

• a list of acts and regulations administered by the CRA ; and
• further information on the CRA’s implementation of government-wide regulatory management initiatives.

Consult the following for links to the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:

• Federal regulatory management and modernization
• Learn more about regulatory cooperation

To learn about upcoming or ongoing consultations on proposed federal regulations, visit:

• Consulting with Canadians; and
• Canada Gazette