CCRA Annual Report to Parliament 2004-2005

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Unaudited Supplementary Financial Information

Financial Performance Tables

Financial Tables Index

Table 9.2 Contributions to the Province of Quebec for the joint administration costs of federal and provincial sales taxes (Voted)

Start Date: April 18, 1991
End Date: Ongoing
Total Expenditures: $1,359,401 thousands (year to date including 2004-2005)
Purpose of Transfer Payment: Canada had recommended to Parliament legislation to establish a tax under Part IX of the Excise Tax Act to be known as the Goods and Services Tax (GST) replacing the existing sales tax imposed under the Excise Tax Act. Canada offered the provinces the administration of the GST within the territory of their province on condition that they harmonize their provincial tax to GST. Quebec agreed to this proposal and recommended to the Parliament of Québec legislation to amend its consumption tax base in order to make it substantially comparable with the GST tax base, subject to Québec's constitutional powers.
Under the GST Agreement, Quebec administers the GST within its territory in compliance with national standards, with specific terms and conditions signed by both the CCRA and the Ministère du Revenu du Québec (MRQ). The MRQ receives a compensation not exceeding what Canada would incur if the GST were administered by the CCRA. Compensation is calculated annually according to a formula agreed upon in the GST agreement.
Objectives, expected results and outcomes:
The GST agreement was entered into by Canada and Québec with a common desire to:
Minimize duplication in the joint administration of the GST and the QST;
Reduce the costs related to such administration;
Ensure the protection of the revenue of both governments;
Facilitate compliance with the GST and the QST;
Provide a high level of service to the public.
Achieved results or progress made: All goals were met as planned and within budget.
Actual Spending 2002-2003
Actual Spending 2003-2004
Planned Spending 2004-2005
Total Authorities 2004-2005
Actual Spending 2004-2005
Variance Planned/ Actual
Business Line
(in thousands of dollars)
Tax Services
Total Grants
Total Contributions
109,307
119,855
160,900
160,900
127,173
33,727
Total Other Transfer Payments
Total Business Line
109,307
119,855
160,900
160,900
127,173
33,727
Total TPP
109,307
119,855
160,900
160,900
127,173
33,727
Comment on variance: The agreement sets out a financial formula which determines the amount of the payment that the Government of Canada must pay. The payment is calculated based on actual costs incurred, subject to the formula, which is based on the number of GST registrants; the productivity achieved by the Agency in the rest of the country; and the average salary rate in Québec's Ministère du revenu. The joint total administration costs are shared on a 50/50 basis.
Significant Evaluation Findings and URL to Last Evaluation: N/A



Date modified:
2005-10-26