Tax Services

Expected Outcome

Performance Summary – We have met this Anticipated Result, as demonstrated by the following performance against expectations:

• identified issues and made recommendations to the Department of Finance for legislative changes
• created new regulations and drafted amendments to existing and new legislation, including the new Excise Act, 2001

We continued to work with the departments of Finance and Justice to ensure that proper legislation exists to realize the government's objectives for fairness and the promotion of voluntary compliance in the tax system. We participated in several improvements to existing legislation and were involved in creating new legislation.

This year, the new Excise Act, 2001 received Royal Assent. This Act was developed to provide a more efficient framework for administering and enforcing the taxation of alcohol and tobacco products. We created several new regulations in anticipation of its coming into force on July 1, 2003. For the already existing Excise Act, we helped in drafting amendments that were consequential to the passing of the Excise Act, 2001.

For the Income Tax Act, we participated in drafting amendments on donations to foreign universities, extensions to time limits for filing elections and information returns, and the provision for electronic information returns. An extensive revision of Non-Resident Trust and Foreign Investment Entity rules (also in other acts) under the Foreign Reporting Requirements (FRR) was undertaken to address existing legislative weaknesses in the protection against investment in tax havens. For the Excise Tax Act, we took part in drafting amendments to the treatment of ships' stores and the taxation of tobacco products.

We also partnered in the drafting of amendments to the Canada Pension Plan, initiated amendments to the Children's Special Allowances Regulations, and made recommendations for change to both the Air Travellers Security Charge Act (to respond to industry and security pressures regarding the application of the charge) and the Charities Registration (Security Information) Act. Across several acts, we participated in drafting budget provisions including changes to the automobile benefit rules, the Canada Child Tax Benefit, and resource taxation.

We continued to monitor emerging issues and court cases to gauge the need for changes in legislation and in the way the tax system operates. Where appropriate, we put in place administrative and legislative contingency plans to allow us to respond in a timely fashion to possible outcomes. In order to improve reporting on legislative issues, we initiated the development of an electronic file tracking system.

In response to the growth in e-commerce, a technical information bulletin was created and posted on our Web site to provide and explain the provisions of legislation relevant to e-commerce. Also, this year, we were involved and continue to be involved in the negotiations taking place with the U.S. for the settlement of the softwood lumber dispute.

Under the Voluntary Sector Initiative, an accord was signed by the Prime Minister last year to strengthen the relationship between the voluntary sector and the Government of Canada. Work continues to put the agreement into practice at the CCRA. Also, this year we participated in the Joint Regulatory Table, which produced a report calling for improvements to the federal legislative and regulatory environment in which the voluntary sector operates. The report focused on improvements such as a shortened annual return, better accessibility and transparency.

Date modified:

2003-10-29