News release

Revenue Minister announces membership of advisory groups on electronic commerce

Ottawa, May 31, 1999The Honourable Herb Dhaliwal, Minister of National Revenue and M.P. (Vancouver South-Burnaby), today announced appointments to four technical advisory groups being formed to give ongoing expert advice to Revenue Canada on electronic commerce issues.

"Revenue Canada is looking ahead to a rapid expansion in electronic commerce," said Mr. Dhaliwal. "Electronic commerce offers many opportunities to Canadians both in business and as consumers. That's why we are looking to partners and companies involved in this new form of business for advice."

The advisory groups will be chaired by senior Revenue Canada officials. They bring together almost 40 members with an interest in electronic commerce. This includes business leaders, lawyers, tax professionals, and computer experts.

Mr. Dhaliwal announced the formation of the four advisory groups last fall in his response to a comprehensive report prepared by the Minister's Advisory Committee on Electronic Commerce, a body made up of tax experts and representatives of industries involved in electronic commerce or affected by it.

The mandates of the four technical advisory groups are as follows:

• Advisory Group on Improving Taxpayer Service: This group will advise on electronic service delivery to clients, including such issues as simplifying tax registration and filing requirements, and establishing quicker and more secure ways of paying taxes and getting refunds.
• Tax Compliance and Administration Advisory Group: This group will deal with the issues involved in establishing a comprehensive electronic commerce compliance program. Also, it will help develop Revenue Canada's position on questions such as electronic cash, digital signatures, encryption, rules for transfer pricing of exports and imports, and the location of taxpayer books and records.
• Consumption Tax Advisory Group: This group will advise on applying the goods and services tax/harmonized sales tax (GST/HST) to sales made through electronic commerce, with particular regard to GST/HST registration for non-residents and to foreign tax collection agreements.
• Interpretation and International Co-operation Advisory Group: This group will advise on how to apply Canada's tax rules to income generated through electronic commerce. Its mandate will be to help ensure consistency of taxation between electronic commerce and more traditional forms of business, taking into account Canada's obligations under international tax treaties.

A list of members appointed to the four committees is attached. Information about their background can be accessed on the Revenue Canada Web site at www.rc.gc.ca

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