Excise Tax Archives

Government of Canada delivers on the promise of the Softwood Lumber Agreement

$467 million in export charges paid to 6 provinces

In a Canada Revenue Agency News Release, Minister of National Revenue Gordon O'Connor has announced that the CRA has distributed close to $470 million in revenue to six provinces from charges on exports of softwood lumber products destined for the U.S.

According to the release:

"The six provinces whose products may be subject to the export charge under the September 2006 Canada-U.S. Softwood Lumber Agreement (SLA) are: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. Exports of softwood lumber products from the Atlantic provinces are not subject to the export charge."

For more information, see:
http://www.cra-arc.gc.ca/newsroom/releases/2008/jan/nr080111-e.html

Reminder of upcoming amendments to fairness provisions in

As a reminder to Canadians, the Canada Revenue Agency (CRA) has issued the following news release:

Ottawa, Ontario, February 28, 2007... The Canada Revenue Agency (CRA) reminds goods and services tax/harmonized sales tax (GST/HST) registrants that they have until March 31, 2007, to review their records and send in any requests for penalty and interest relief under the fairness provisions for a reporting period that ended on or before December 31, 1996.

Legislative changes to the fairness provisions in the Excise Tax Act (both for GST/HST and non-GST/HST purposes) were introduced in 2006. Starting April 1, 2007, the Minister's discretion to waive or cancel penalties and interest will be limited to requests for reporting periods that ended within any of the 10 calendar years preceding the calendar year in which the request is made.

For more information on this news release, please visit:
http://www.cra-arc.gc.ca/newsroom/releases/2007/feb/nr070228-e.html

CRA Excise and GST/HST News

The latest edition of the Canada Revenue Agency's Excise and GST/HST News is now available on the CRA Web site at:
http://www.cra-arc.gc.ca/E/pub/gr/news58/README.html

This edition includes information on Bill C-33, specifically measures to reduce the air travellers security charge and amendments to the First Nations Goods and Services Tax Act "to facilitate the establishment of taxation arrangements between the Government of Quebec and interested Indian bands situated in Quebec."

It also includes information on Bill C-34 "relating to directors’ liability for GST/HST net refunds, the confirmation of a person’s GST/HST registration status, the excise tax on jewellery, a further rate reduction for the air travellers security charge as well as the extension of the 83% health care rebate to eligible charities and non-profit health care organizations that provide health care services similar to those traditionally performed in hospitals."

Also in this issue:
- 10% tax on insurance premiums (other than marine)
- Procurement cards and claiming input tax credits
- Third party authorization for excise and GST/HST rulings
- GST/HST content on the CRA Web site
- File your GST/HST return electronically
- Prescribed rates of interest
- What’s new in publications

Excise Tax on jewellery to be phased out

Importers and manufacturers of certain jewellery goods will see the amount of Excise tax paid on those goods reduced from 10 % to 8 % as of February 24, 2005. Budget 2005 proposes that the excise tax on jewellery be phased out through a series of rate reductions over the next four years.

The measure is in response to a study by the House of Commons Standing Committee on Finance relating to federal tax measures to help small businesses in certain sectors, including excise tax and duty relief for jewellers, small brewers and wine-makers, and measures to improve access to capital for agricultural cooperatives.

The list of products includes: jewellery (diamonds and other precious and semi-precious stones for personal use) and gold/silversmiths' products, clocks and watches, as well as articles made (in whole or in part) of natural shells and semi-precious stones. Over the next four years this tax will be phased out completely.

More information is available on the federal budget site:
http://www.fin.gc.ca/budget05/bp/bpc4de.htm