Implementation Date: April 18, 1991
|
|
Total Expenditures: $1,490,804,000 to date including 2005-2006
|
Description of Transfer Payment Program: 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 Quebec legislation to amend its consumption tax base in order to make it substantially comparable with the GST tax base, subject to Quebec'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 CRA 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 CRA. Compensation is calculated annually according to a formula agreed upon in the GST agreement.
|
Objective(s) expected, result(s) and outcomes:
|
The GST agreement was entered into by Canada and Quebec 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. Starting in 2006-2007, this program will no longer be reported as a Contribution but will be treated in the same manner as the collection of GST in all other provinces and territories and included in the cost of operations of the CRA.
|
|
|
|
|
Planned Spending 2005-2006
|
Total Authorities 2005-2006
|
|
Variance Planned / Actual
|
|
|
(in thousands of dollars)
|
Assessment of Returns and Payment Processing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Transfer Payments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Quebec'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
|
