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Ottawa, March 21, 1997
1997-024

Draft HST and GST Regulations and Legislation Tabled

Related documents:

• Draft Regulations and Legislation Relating to the HST and GST (Adobe Acrobat format - 227,341 bytes).
• Notes on HST and GST Draft Regulations and Legislation.

Secretary of State (Finance) Doug Peters today tabled on behalf of the Minister of Finance, Paul Martin, draft regulations and a Notice of Ways and Means Motion concerning the Harmonized Sales Tax (HST) and Goods and Services Tax (GST).

The draft regulations reflect certain changes to the GST and to the implementation of the HST. Some changes released today also reflect previously announced amendments to those regulations. The following draft regulations were released:

• Place of Supply (GST/HST) Regulations;
• Specified Motor Vehicle (GST/HST) Regulations;
• Automobile Operating Expense Benefit (GST/HST) Regulations;
• Regulations Amending the Input Tax Credit Information Regulations;
• Regulations Amending the Streamlined Accounting (GST) Regulations;
• Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations;
• Property Supplied by Auction (GST/HST) Regulations; and
• Regulations Amending the Federal Sales Tax New Housing Rebate Regulations.

The Minister also tabled a Notice of Ways and Means Motion which proposes technical amendments to the Excise Tax Act. These amendments in large part respond to specific concerns expressed by industry in the course of consultations held throughout the harmonization process. The proposed amendments would:

• simplify the GST and HST treatment of promotional allowances;
• add a provision to zero-rate the supply to registered air carriers of air navigation services supplied by NAV CANADA in relation to international flights;
• enable registrants in certain circumstances to accelerate a change to a more frequent filing period under the HST, to address any change in their cash flow position resulting from the HST;
• enable registrants using a streamlined accounting method to accelerate a change to the general rules for determining net tax under the HST;
• clarify the transition rules for the partial rebate of the provincial component of the HST for residential complexes situated in Nova Scotia;
• simplify the transitional rules for leases provided together with services where the transaction straddles the April 1, 1997 implementation date of the HST and clarify the application of certain of these transition rules; and
• supplement the rules set out in the regulations released today for calculating net tax under the HST for selected listed financial institutions.

Minister Martin noted that today's announcement furthers the governments' efforts to harmonize the federal and provincial sales taxes in the participating provinces.

Details of the proposed measures are set out in the attached notes and in the accompanying publication containing the draft regulations and amendments to the Excise Tax Act.

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For further information:

Marlene Legare
Sales Tax Division
(613) 992-4230