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Ottawa, November 26, 1997
1997-107

Draft GST/HST Legislation and Regulations Tabled

Related documents :

• Notice of Ways and Means Motion to Amend the Excise Tax Act and a Related Act
• Notes on GST/HST Draft Legislation and Regulations.
• Draft Legislation and Regulations Relating to the GST and HST (Adobe Acrobat format  - 296,854 bytes).

The Honourable Jim Peterson, Secretary of State (International Financial Institutions), today tabled, on behalf of the Minister of Finance, Paul Martin, a Notice of Ways and Means Motion and draft regulations relating to the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST).

The package includes proposed regulations to prescribe additional organizations eligible to receive the 100 per-cent federal rebate of the GST or the federal component of the HST on certain reading materials and audio recordings of printed books. Added to the list of recipients are several charities whose primary purpose is the promotion of literacy. The federal program, which went into effect on October 24, 1996, has channelled support to municipalities, universities, colleges, schools, public libraries, and other bodies that play a direct role in improving literacy levels in their communities.

The Notice of Ways and Means Motion proposes amendments to the Excise Tax Act and a related Act that clarify and refine the application of the GST and HST in the following areas:

• HST transitional rules relating to specified motor vehicle leases and subscription sales;

• Tax disclosure requirements;

• Discount coupons, promotional allowances, and patronage dividends;

• Rules affecting builders of residential complexes;

• Seizures or repossessions, and transfers of property to insurers;

• Corporate take-overs;

• Rules affecting selected listed financial institutions;

• Streamlined accounting method for charities;

• Direct cost exemption for charities and public service bodies;

• Osteopathic and speech therapy services;

• Employee and partner rebates;

• Provincial product taxes;

• Foreign conventions; and

• HST place-of-supply rules for customs brokers.

Secretary Peterson also released today several draft Regulations relating to the GST and the HST. For the most part, these regulatory amendments incorporate previously announced measures or changes that are necessary as a consequence of amendments that have been made to the Excise Tax Act, including those resulting from the introduction of the HST. In some cases, the Regulation is being reissued in draft form and would therefore supersede the earlier version. The following draft regulations were released:

• Regulations Amending the Amalgamations and Windings-Up Continuation (GST) Regulations;

• Regulations Amending the Artists' Representatives (GST) Regulations;

• Regulations Amending the Credit Note Information Regulations;

• Deduction for Provincial Rebate (GST/HST) Regulations;

• Federal Book Rebate (GST/HST) Regulations;

• Regulations Amending the Input Tax Credit Information Regulations;

• Regulations Amending the Mail and Courier Imports (GST) Regulations;

• Regulations Amending the Public Service Body Rebate (GST) Regulations;

• Regulations Amending the Publications Supplied by a Non-resident Registrant Regulations;

• Regulations Amending the Streamlined Accounting (GST) Regulations;

• Regulations Amending the Taxes, Duties and Fees (GST) Regulations; and

• Regulations Amending the Value of Imported Goods (GST) Regulations.

The attached notes and the accompanying publication containing the proposed amendments describe these measures in further detail. It should be noted that references in these documents to "Announcement Date" should be read as references to today's date.

___________________
For further information:

Marlene Legare
Sales Tax Division
(613) 992-4230

Notice  of Ways and Means Motion
to Amend the  Excise Tax Act
and a Related Act

That it is expedient to amend the Excise Tax Act and a related Act in accordance with the proposals set out in the attached notes and accompanying publication entitled "Draft Legislation and Regulations Relating to the GST and HST" dated November 1997.