Proposed Regulations
for Pre-Publication in Part
I, Canada Gazette
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Statutory Authority
&
Regulatory Plan Listing
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Air Transportation
Regulations, amendment
The proposed regulatory
changes would streamline and reduce the regulatory burden
for international charter operations under Part III
(International Charters), amend Part II to ensure the
true identity of the operator of the aircraft is made
public, amend Part V (Tariffs) to enhance dissemination
of information to the public, and make editorial changes
to Part IV (Transborder Charters) to maintain
consistency.
The proposed changes would
also add a requirement under Part V that a Direction from
an Air Carrier to the agent be filed with the Canadian
Transportation Agency (CTA) when tariffs are filed
electronically.
The proposed changes will
affect air carriers operating international charter
services, charterers of these services (including tour
operators), and the travelling and shipping public using
the services. Much of the regulatory burden on carriers
operating international charters would be reduced and
most of the charter regulatory requirements would be
eliminated or reduced.
One of the changes would
shift much of the regulatory burden with respect to
advance payments to the tour operator/charterer levels,
which provinces are authorized to regulate. This would
eliminate protection at the air carrier level.
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Canada Transportation Act,
subsections 36(1) and 86(1)
NTA/96-14-I
To be published in Canada
Gazette October 11, 1997
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Other proposed changes
include:
- elimination of tariff
filing requirements for international charters;
general terms and conditions of tariffs would continue
to be regulated.
- more explicitly
prohibiting an applicant from redeeming capital stock
and withdrawing proprietor's or partner's capital
within the 12-month period following the date of issue
or reinstatement of an applied-for licence.
- a prohibition against an
air carrier representing itself or operating an air
service under a name other than that specified in its
licence. Operations under a trade name would require
that the trade name be specified in the licence.
- reduced charter fences
associated with specific charter types and reduced
application procedures for air carriers (Canadian
Origin charters).
- a requirement for
charterers to pay air carriers at least seven days in
advance for flights using aircraft with a Maximum
Certified Take Off Weight of greater than 35,000
pounds (Canadian Origin charters);
- the elimination of
federal regulations for advance payments from the
travelling public (Canadian Origin charters).
- maintenance of the
requirement that the entire capacity of an aircraft be
chartered by only one charterer. In the case of entity
charters, the charterer would be prohibited from
reselling capacity to third parties. This prohibition
would be extended to all live animals.
- the consolidation of
charter tolls and tariffs in Part V (Tariffs).
- the addition of a
provision under Part V that air carriers advise the
public that tariffs are subject to Government approval
when sold in advance of the effective date.
- dropping, for
international charter tariffs, of the requirement to
file with the CTA charter tariffs; they would have to
publish and make available their charter rates at
their place of business.
- the ability for the CTA
to disallow international charter rates which would be
lower than the lowest rate charged by a Canadian air
carrier in similar markets (the so-called floor price
rule).
The amendments to Part III
(International Charters) are based largely on the Part IV
(Transborder) rules prepublished several times in the
Canada Gazette, Part I.
Contact: Rosemary
Baldwin, Senior Advisor, Agreements, Tariffs and
Enforcement Directorate, Air and Accessible
Transportation Branch, Canadian Transportation Agency,
Ottawa, Ontario,K1A 0N9. Tel: 819-953-9795.
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Exempt from Pre-Publication
and Approved
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Statutory Authority
&
Regulatory Plan Listing
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Federal-Provincial Fiscal
Arrangements Regulations, amendment
(SOR/97-467,
OIC 1997-1462)
The amendments are required
to reflect a change in the name of the authorizing
legislation, to clarify existing practices for
determining and making Equalization payments to
provinces, and to modify existing practices for
determining Equalization payments to provinces to take
into account changes in provincial tax systems and
Statistics Canada practices.
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Federal-Provincial Fiscal
Arrangements Act
FIN/R-35-M
To be published in Canada
Gazette October 29, 1997
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More specifically:
- Section 1 is amended to
reflect the change in the name of the authorizing
legislation to the Federal Provincial Fiscal
Arrangements Act;
- Sections 2, 4 and 9 are
amended to provide greater clarity regarding the
determination of Canada's gross national product;
- Section 5 is amended to
take into consideration payments to provinces under
sales tax harmonization agreements and changes to
Statistics Canada's Financial Management System and to
clarify that adjustments may be made to avoid double
counting when a provincial or local government makes
payments to itself;
- Section 8 is amended to
clarify existing practices regarding the recovery of
overpayments.
Contact: Sara Gill,
Department of Finance, Federal-Provincial Relations
Division, 15t Floor East, Tower L'Esplanade Laurier, 140
O'Connor Street, Ottawa, Ontario, K1A OG5. Tel:
613-996-0623.
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Canada Health and Social
Transfer Regulations
(SOR/97-468,
OIC 1997-1463)
The regulations define terms
used in the Act, identify the method for calculating the
value of equalized tax transfers, and prescribe the
timing and manner of estimates and payments.
The regulations specify how
the Chief Statistician of Canada determines the
population of a province (established on the first day of
June of a fiscal year) and gross domestic product for
Canada (based on market prices for the calendar year).
The regulations set out a
formula for calculating equalized tax transfers, provides
for interim estimates, and a final computation.
The Canada Health and Social
Transfer (CHST) is a federal-provincial transfer program
under which the federal government provides funds to
provinces to assist with the costs of providing health
and social programs. The Federal-Provincial Fiscal
Arrangements Act provides for certain aspects of the CHST
to be prescribed in regulations.
The regulations come into
force October 9, 1997.
Contact: Sara Gill,
Department of Finance, Federal-Provincial Relations
Division, 15t Floor East, Tower L'Esplanade Laurier, 140
O'Connor Street, Ottawa, Ontario, K1A OG5. Tel:
613-996-0623.
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Federal-Provincial Fiscal
Arrangements Act
FIN/96-36-M
To be published in Canada
Gazette October 29, 1997
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Contraventions Regulations,
amendment
(SOR/97-469,
OIC 1997-1470)
This amendment designates as
contraventions a number of additional federal offences,
such as those under the Canada Ports Corporation
Operating Bylaw and the Wildlife Area Regulations. It
also modifies some contraventions already listed in the
Contraventions Regulations to reflect recent regulatory
amendments.
Designating the offences
under the regulations decriminalizes the offences and
permits the use of fines (which are set out in Schedules
to the Regulations).
Also covered under the
amendments are: Vancouver Port Corporation Navigation
Restriction By-law, 1992; Migratory Birds Convention Act,
1994; National Parks Fishing Regulations; Wild Animal and
Plant Protection and Regulation of International and
Interprovincial Trade Act; and Wild Animal and Plant
Trade Regulations.
The Regulations come into
effect October 9, 1997.
Contact: Michel Gagnon,
Director, Contraventions Project, Department of Justice,
344 Wellington, Ottawa, Ontario, K1A 0H8. Tel:
613-954-5669; Fax: 613-998-1175.
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Contraventions Act, section
8
JUS/97-1-I
To be published in Canada
Gazette October 29, 1997
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Income Tax Regulations
(Part I), amendment
(SOR/97-470,
OIC 1997-1471)
Part I, which provide the
rules concerning source deductions by an employer from
amounts paid to an employee, is being amended in
connection with retirement and child support payments.
More specifically, the
changes:
- allow a reduction of the
remuneration on which source deductions are calculated
to take into consideration an amount contributed by
the taxpayer in the year to a retirement compensation
arrangement;
- clarify the existing
provision that allows support patents to be deducted
from the remuneration so that only payments withheld
pursuant to a court order dated prior to May 1997 will
continue to qualify, since child support payments are
generally not deductible from income after April 1997;
- ensure that the
non-deductible portions of a retiring allowance or
certain other payments are not deducted from the
remuneration on which source deductions are
calculated; and
- require withholding
where the remuneration is reasonably attributable to
the duties of an office or employment which will be
performed in Canada by a non-resident person at a
later date.
Subsection 1(2) of the
Regulations applies beginning May 1, 1997.
Contact: Richard Montroy,
Legislative Policy Division, Revenue Canada, 875 Heron
Road, Ottawa, Ontario, K1A 0L5. Tel: 613-952-6479.
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Income Tax Act, section 221
RC/R-10-L
To be published in Canada
Gazette October 29, 1997
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Income Tax Regulations
(Part VI), amendment
(SOR/97-471,
OIC 1997-1472)
This amendment adds
additional provisions to allow taxpayers to request
permission to make a late or amended election or to
revoke an earlier election.
More specifically, the
changes amend paragraphs 600(b) and (c) of the
Regulations, effective October 9, 1997.
Contact: Richard Montroy,
Legislative Policy Division, Revenue Canada, 875 Heron
Road, Ottawa, Ontario, K1A 0L5. Tel: 613-952-6479.
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Income Tax Act, section 221
RC/R-12-L
To be published in Canada
Gazette October 29, 1997
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Canada Pension Plan Regulations,
Insurable Earnings and Collection of Premiums Regulations
and Income Tax Regulations, amendments
(SOR/97-472,
OIC 1997-1473)
These amendments will allow
employers with average monthly withholdings of less than
$1,000 for the first or the second preceding calendar
year, and no compliance irregularities for the preceding
12 months, to remit source deductions on a quarterly
basis, instead of on a monthly basis.
The estimated revenue impact
of the change is $180 million in 1997-98. This is largely
a one-time impact due to withholding amounts from January
and February 1998 being paid April 15 and credited to the
1998-99 fiscal year, rather than the 1997-98 fiscal year
as would have been the case with monthly remittances.
There is also an estimated $5 million ongoing annual cost
due to carrying costs arising from the delay in receiving
withholding amounts.
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Income Tax Act, section 221;
Canada Pension Plan, section 40; Employment Insurance
Act, sections 82 and 108
RC/R-12-L
To be published in Canada
Gazette October 29, 1997
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The amended Regulations
apply to amounts and contributions required to be
remitted to the Receiver General for Canada after October
1997.
Contact: Richard Montroy,
Legislative Policy Division, Revenue Canada, 875 Heron
Road, Ottawa, Ontario, K1A 0L5. Tel: 613-952-6479.
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Triad International Inc.
Remission Order
(SI/97-123,
OIC 1997-1461)
This Order remits up to
$110,632.36 in GST payable by Triad International Inc. as
a supplier because the company relied detrimentally on
incorrect advice provided verbally by a Department of
Finance official.
The remission relates to GST
payable in connection with a service of dismantling the
Glacier Ammonia Plant located near Pincher Creek,
Alberta.
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Financial Administration
Act, subsection 23(2)
Not included in Regulatory
Plan
To be published in Canada
Gazette October 29, 1997
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