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 2024 and 2026:

Regulations Made Under the Income Tax Act

• Amendment to Subsections 205(3) and 205.1(1) of the Income Tax Regulations - Updated
• Prescribed Donees – Name Change - New

Regulations Made Under the Excise Act

• Regulations Repealing the Special Services (Excise) Regulations - New

Regulations Made Under the Tax Rebate Discounting Act

• Repeal of Regulations Made Under the Tax Rebate Discounting Act - New

Regulations Made Under the Financial Administration Act

• Repeal of Certain Regulations Made Under the Financial Administration Act - New

Amendment to Subsections 205(3) and 205.1(1) of the Income Tax Regulations

Enabling Act: Income Tax Act

Description: The CRA is proposing amendments to subsections 205(3) and 205.1(1) of the Income Tax Regulations relating to three different types of information returns submitted by large volume filers.

The Income Tax Act currently provides for general penalties for failing to file information returns 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.

Part XVIII information returns

The CRA is proposing to amend subsection 205(3) of the Income Tax Regulations 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.

Part XIX information returns

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 maintained at any time during the immediately preceding calendar year by filing, with the CRA, a Part XIX information return before May 2nd of each calendar year in an electronic format.

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.

Part XX information returns

The Income Tax Act was recently amended to introduce new rules that require digital platform operators to report certain information to the CRA. The platform operator must report the required information electronically in the prescribed form no later than January 31 of the year following the calendar year in which the seller is identified as a reportable seller.

While the Income Tax Regulations were amended to add the Part XX Information Return to the list of prescribed returns to which the reduced late filing penalty applies, an amendment is required to include the information return on the prescribed list to which these reduced penalties apply if the return is not filed electronically.

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

Potential impacts on Canadians, including businesses: The proposed amendments only affect large volume filers, mainly corporations and financial institutions, and do not impose any additional administrative burden on those entities.

The proposed amendments are of relieving nature to the extent that they will allow a reduced penalty to be applied consistently to large volume filers when an information return is filed late or not in electronic format.

Consultations: No further consultations are planned given that the requirements to file the information returns are found in the Income Tax Act. The proposed amendments only affect large volume filers, and do not impose any additional administrative burden.

Further information:

Part XVIII information returns:
Income Tax Regulation 205 – prescribed list
How to complete and file a Part XVIII Information Return - International Exchange of Information on Financial Accounts slips and summary

Part XIX information returns:
Guidance on the Common Reporting Standard
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

Part XX information returns:
Income Tax Regulation 205.1 - prescribed list

CRA contact:
Thi Thanh Nhan (Anna) Tran
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:
Part XIX Information Return: 2019-04-01
Part XVIII Information Return: 2021-07-30
Part XX Information Return: 2024-12-18

Prescribed Donees – Name Change

Enabling Act: Income Tax Act

Description: The CRA is proposing an amendment to the list of prescribed donees in section 3504 of the Income Tax Regulations to reflect the legal name change of a charity.

A prescribed donee is a charity outside of Canada whose purpose is to hold title to land in Canada or to transfer land to a registered charity in Canada for conservation purposes.

American Friends of Canadian Conservation (AFCC) was first added to the list of prescribed donees in the Regulations in 2010 under the name of American Friends of Canadian Land Trusts. The organization changed its name to AFCC in 2018.

The purpose of the amendment is to correctly reflect the legal name change of this charity on the list of prescribed donees to ensure the continued validity of any charitable transactions receipted by this organization.

Regulatory cooperation efforts (domestic, international): This administrative amendment does not require regulatory cooperation efforts.

Potential impacts on Canadians, including businesses: This proposal would update the prescribed list to reflect the legal name change of this organization therefore ensuring the validity of the donation receipts and elections made by non-resident donors.

There is no additional burden resulting from this amendment to existing regulations.

Consultations: Due to the administrative nature of the amendment, no consultation is required.

Further information:
CRA policy/guidance: Prescribed donees
Income Tax Regulation 3504 – Prescribed Donees

CRA contact:
Thi Thanh Nhan (Anna) Tran
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: 2024-12-18

Regulations Repealing the Special Services (Excise) Regulations

Enabling Act: Excise Act

Description: The Special Services (Excise) Regulations (SSER), made under the Excise Act, pertain to beer, spirits and tobacco. Historically, the administration of the SSER required the direct supervision of excise manufacturers and producers through the presence of on-site excise duty officers. The SSER describe what activities performed by the excise duty officers constitute special excise services and their associated fees.

The SSER are considered spent for the purposes of spirits and tobacco as these products are no longer regulated under the Excise Act.

For the purposes of beer, which continues to be regulated under the Excise Act, the SSER are considered obsolete. All licensed brewers are now authorized to operate without direct supervision, therefore special services are no longer conducted by the CRA.

This proposal repeals these obsolete and spent regulations.

Regulatory cooperation efforts (domestic, international): These administrative amendments do not require regulatory cooperation efforts.

Potential impacts on Canadians, including businesses: The repeal of the regulations does not impose any costs on stakeholders. These amendments contribute to regulatory modernization by ensuring that regulations are current and relevant.

Consultations: Due to the administrative nature of these amendments, no consultation is required.

Further information:
Special Services (Excise) Regulations

CRA contact:
Thi Thanh Nhan (Anna) Tran
Manager, Federal and Provincial Legislative Affairs Section
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency
E-mail: Regulations-Reglements@cra-arc.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan: 2024-12-18

Regulations Made Under the Tax Rebate Discounting Act

Enabling Act: Tax Rebate Discounting Act

Description: The Tax Rebate Discounting Act (the Act) regulates the practice of tax rebate discounting and protects the rights and interest of individuals who use discounting services to get their income tax refunds.

A discounter is required under the Act to provide its clients certain information in respect to the discounting transactions and the actual amount of tax refund. The Tax Rebate Discounting Regulations (TRDR) and their Schedules I and II were originally created with the intent to prescribe the forms required to be used by discounters under the Act for this purpose. The forms referenced under both Schedules have since been displaced by forms now authorized by the Minister of National Revenue, subsequent to an amendment to the Act.

The intent of this proposal is to repeal the TRDR and their accompanying Schedules as they are obsolete and have no current application.

Regulatory cooperation efforts (domestic, international): These administrative amendments do not require regulatory cooperation efforts.

Potential impacts on Canadians, including businesses: The repeal of the regulations does not impose any costs on stakeholders. These amendments contribute to regulatory modernization by ensuring that regulations are current and relevant.

Consultations: Due to the administrative nature of these amendments, no consultation is required.

Further information:
Tax Rebate Discounting Regulations
Information for discounters
RC71 Statement of Discounting Transaction
RC72 Notice of the Actual Amount of the Refund of Tax

CRA contact:
Thi Thanh Nhan (Anna) Tran
Manager, Federal and Provincial Legislative Affairs Section
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency
E-mail: Regulations-Reglements@cra-arc.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan: 2024-12-18

Repeal of Certain Regulations Made Under the Financial Administration Act

Enabling Act: Financial Administration Act

Description: These amendments repeal obsolete regulations which have no current application:

1. Registered Charities Information Return Fee Order

Prior to the digitalization of information, the Registered Charities Information Return Fee Order was registered to prescribe the fee to be paid for copies of documents containing information regarding registered charities. Requests for large volumes of copies have ceased as the information is now accessible through the CRA website or in electronic format. The fee set out in the Order is no longer charged, as the service is no longer provided.

2. Revenue Canada Technical Publication Subscription Service Fees Order

The Revenue Canada Technical Publication Subscription Service Fees Order was implemented to prescribe the fee to be paid by a person for subscription services provided by the CRA in respect of technical publications in paper form. As technical publications are now published on the CRA website or accessible through commercial publishers of tax information, the subscription services are no longer provided and the fee outlined in the Order is no longer charged.

3. Taxation Statistics Diskette Fee Order

The Taxation Statistics Diskette Fee Order was introduced to prescribe the fee to be paid by a person for a computer diskette containing tables of taxation statistics, which provided analytical summaries of information, income tax statistics and data based on income tax returns filed by individuals.

Given that these tax statistics are, as of 2012, published on the CRA website and the advancement of technology has made the use of diskettes obsolete, the fee and service set out in the Order are no longer relied upon.

This proposal will repeal these three Orders, as these regulations are obsolete and have no current application.

Regulatory cooperation efforts (domestic, international): These administrative amendments do not require regulatory cooperation efforts.

Potential impacts on Canadians, including businesses: The repeal of the regulations does not impose any costs on stakeholders. These amendments contribute to regulatory modernization by ensuring that regulations are current and relevant.

Consultations: Due to the administrative nature of these amendments, no consultation is required.

Further information:
Registered Charities Information Return Fee Order
Revenue Canada Technical Publication Subscription Service Fees Order
Taxation Statistics Diskette Fee Order

CRA contact:
Thi Thanh Nhan (Anna) Tran
Manager, Federal and Provincial Legislative Affairs Section
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency
E-mail: Regulations-Reglements@cra-arc.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan: 2024-12-18

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