Archived - Notice of Ways and Means Motion to Amend the Excise Tax Act

That it is expedient to amend the Excise Tax Act (the "Act") to ensure, out of respect for provincial autonomy and to provide certainty to businesses and individuals, that all provinces have equal opportunity to enter into a fully harmonized value-added tax framework and to provide for, among other things, the facilitation of a new harmonized value-added tax framework to accommodate any province's decision to have the provincial component of the harmonized value-added tax under the Act apply in that province by achieving a common understanding with Canada in respect of such a new framework, including the provision of rules and mechanisms to ensure:

• the proper imposition of the provincial component of the harmonized value-added tax in respect of that province;
• the proper application of any element of provincial tax policy flexibility contemplated under the common understanding, including rate flexibility for the provincial component of the harmonized value-added tax, rebate flexibility in respect of the provincial component of the harmonized value-added tax and the temporary recapture of certain input tax credits in respect of the provincial component of the harmonized value-added tax;
• the proper functioning and application of the Act in all respects, including provisions flowing from the provincial tax policy flexibility contemplated under the common understanding and the addition of every province that chooses to join the new framework; and
• the proper administration and enforcement of, and compliance with, the Act.