Vol. 148, No. 5 — February 26, 2014

Registration

SOR/2014-28 February 7, 2014

FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Order Amending Schedule I to the Federal-Provincial Fiscal Arrangements Act

P.C. 2014-110 February 6, 2014

His Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to paragraphs 31(2.2)(a) (see footnote a) and (b) (see footnote b) of the Federal-Provincial Fiscal Arrangements Act (see footnote c), makes the annexed Order Amending Schedule I to the Federal-Provincial Fiscal Arrangements Act.

ORDER AMENDING SCHEDULE I TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

AMENDMENTS

1. Schedule I to the Federal-Provincial Fiscal Arrangements Act (see footnote 1) is amended by deleting the following:

Fraser River Port Authority
Administration portuaire du fleuve Fraser

North Fraser Port Authority
Administration portuaire du North-Fraser

Vancouver Port Authority
Administration portuaire de Vancouver

2. Schedule I to the Act is amended by adding the following in alphabetical order:

Oshawa Port Authority
Administration portuaire d’Oshawa

Vancouver Fraser Port Authority
Administration portuaire de Vancouver Fraser

COMING INTO FORCE

3. This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Oshawa Port Authority and the Vancouver Fraser Port Authority are currently not listed in Schedule I of the Federal-Provincial Fiscal Arrangements Act. They should be added to the Schedule for the purpose of clarifying their obligations related to the payment of provincial sales tax and/or other provincial taxes and fees.

As well, the Canada Port Authorities that were amalgamated to become the Vancouver Fraser Port Authority (the Fraser River Port Authority, the North Fraser Port Authority, and the Vancouver Port Authority) are currently listed in Schedule I of the Federal-Provincial Fiscal Arrangements Act. These entities no longer exist and should be removed from the Schedule.

Background

Reciprocal taxation between the federal government and provincial governments is governed, on the federal side, by the terms of the Federal-Provincial Fiscal Arrangements Act. The Federal-Provincial Fiscal Arrangements Act provides, among other things, that the entities listed in Schedule I of the Act (which include Canada Port Authorities) have to pay certain provincial taxes and fees defined in the legislation.

The Federal-Provincial Fiscal Arrangements Act also provides that the federal government may enter into reciprocal taxation agreements. Under these agreements, the federal government and its agents (such as Canada Port Authorities who act as agents of the federal Crown for some purposes) agree to pay certain provincial sales taxes and/or other provincial taxes and fees that would not otherwise be payable because the federal government is constitutionally immune from provincial taxation. Similarly, under reciprocal taxation agreements, provincial governments and their agents agree to pay certain federal sales taxes and/or other federal taxes and fees. The agreements also specify the taxes and fees to be paid by both parties.

Objectives

The objective of this Order is to

Description

Paragraphs 31(2.2)(a) and (b) of the Federal-Provincial Fiscal Arrangements Act provide that the Governor in Council may, by order, amend Schedule I of the Federal-Provincial Fiscal Arrangements Act by adding or deleting the name of any Canada Port Authority established under the Canada Marine Act.

This Order would add the Oshawa Port Authority and the Vancouver Fraser Port Authority to Schedule I of the Federal-Provincial Fiscal Arrangements Act and delete the Vancouver Port Authority, the Fraser River Port Authority, and the North Fraser Port Authority from Schedule I, given that they no longer exist.

“One-for-One” Rule

The proposed Order to amend Schedule I of the Federal-Provincial Fiscal Arrangements Act will have no impact on costs to government, business, consumers or Canadians, as this amendment only clarifies that the Oshawa Port Authority and the Vancouver Fraser Port Authority must pay provincial sales tax and/or other provincial taxes and fees. Also, there are no costs associated with removing port authorities that no longer exist from the Schedule.

Small business lens

The small business lens does not apply to this proposal, as there are no costs to small business.

Rationale

The proposed amendment would align the Oshawa Port Authority under the same legal framework as all other Canada Port Authorities, with respect to paying provincial sales tax and/or other provincial taxes and fees.

As well, the proposed amendment will clarify that as a successor entity, the Vancouver Fraser Port Authority assumed the same legal responsibilities as the three former Canada Port Authorities. Adding the formal name of the Vancouver Fraser Port Authority to Schedule I of the Act is a housekeeping measure that reflects the amalgamation of the three former Port Authorities. In addition, the removal of the titles of these three former Canada Port Authorities will update Schedule I of the Act.

Contact

Tim Meisner
Director General
Marine Policy
Transport Canada
Place de Ville, Tower C, 25th Floor
330 Sparks Street
Ottawa Ontario
K1A 0N5