A Report on Plans and Priorities (2001-02 Estimates) - 4 

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Section IV: Horizontal Initiatives

Legislative and Regulatory Initiatives

Legislation and/or Regulations	Planned Results
Legislation to implement changes to financial sector legislation as set out in Reforming Canada’s Financial Services Sector: A Framework for the Future	Legislation was re-introduced in Parliament on February 7, 2001.
Customs Tariff – The Tariff contains a number of provisions that allow the government to respond, on an ongoing basis, to the competitive needs of Canadian industry and to defend Canada’s rights and meet its obligations in accordance with international agreements and arrangements to which Canada is a party.	Through the use of orders and regulations, the government will respond, as required, to the competitive needs of Canadian industry, defending Canada’s rights and meeting its obligations under international agreements and arrangements.
The Special Import Measures Act –Legislation and related regulations were revised in 2000 to respond to recommendations contained in a parliamentary report.	The government will monitor the implementation of recent changes to Canada’s trade remedy system to ensure that it is functioning as intended and to address any unforeseen issues that may arise as a result of these changes.
Sales Tax and Excise Tax Legislation – Legislation will be brought forward to implement measures relating to the Goods and Services Tax and Harmonized Sales Tax (GST/HST), as well as the export tax on tobacco, that were proposed in the February 28, 2000, budget. Legislation will also be introduced to implement further technical sales tax changes that were announced on October 4, 2000.	These tax changes will improve the operation and fairness of the tax system in the affected areas, will address industry concerns and protect the competitiveness of Canadian businesses, will remove certain anomalies in the existing tax structure, will secure revenues and will ensure that the legislation achieves the intended policy goals.
Excise Tax Act and related Regulations under Part IX of the Act (GST/HST) – Other amendments to the Excise Tax Act and regulations made under Part IX of the Act may be required from time to time to address emerging policy or technical issues.	By means of these amendments the government will resolve technical problems, clarify ambiguous provisions, respond to court decisions, reflect or respond to other statutory changes and implement policy changes (including any changes that may be announced by press release).
Excise Act and related rules and regulations – New legislative framework for the federal taxation of spirits, wine and tobacco products	These will replace the current archaic legislation and complex administration with a modern and flexible tax structure that recognizes the needs of government and industry.
Amendments to the Fiscal Arrangements Act to remove the Equalization payment ceiling for fiscal 1999–2000	The legislation will give effect to the Prime Minister’s commitment to remove the Equalization ceiling for 1999–2000.
Income tax changes relating to foreign investment entities and non-resident trusts	New draft of legislation to implement the 1999 budget proposals to tighten the tax system applying to foreign trusts and investment funds is to be released in the spring of 2001, effective for 2002.
Implementation of tax treaties	The government will introduce a bill to approve and implement new and amended income tax treaties between Canada and other countries.
2000 income tax legislation	Comprehensive income tax bill to be tabled, incorporating provisions: to implement the income tax measures announced in the 2000 budget; to implement income tax measures announced in the October 2000 Economic Statement and Budget Update; previously included in Bill C-43 of 2000 (the 2000 "Technical Bill" which included the technical proposals of November 1999, the income tax legislation relating to taxpayer migration and the income tax amendments to implement the Bill C-55 accord regarding advertising expenses in foreign periodicals); and to implement other income tax initiatives proposed in 2000 (including income tax measures relating to Foreign Branch Banking and the rules governing the taxability of foreign actors).
Possible 2001 release of draft technical income tax amendments	The Department may release further draft technical income tax amendments for consultation, if operational requirements permit.
Proceeds of Crime (Money-Laundering) Act
Regulations required to implement certain provisions of the new Act, which received Royal Assent in June 2000, will be promulgated.	The new Act and associated regulations will enhance the existing anti-money-laundering framework in Canada by adding new measures to improve the detection and deterrence of money-laundering.
Legislation to amend the Act will be re-introduced.	The new legislation will fulfil the government's commitment to the Senate to introduce amendments to address its concerns.

Sustainable Development Strategy

The Department of Finance Canada, along with 27 other federal departments, tabled its first sustainable development strategy (SDS) in Parliament in December 1997. The Department’s first SDS proved valuable in showing how the federal government’s fiscal and economic plans contributed to sustainable development in Canada. It also outlined Finance’s approach and contribution to environmental objectives and issues in international sustainable development. Finally, it showed how we would improve environmental performance in our own operations.

The Department has now released its updated 2001–03 SDS. This new strategy builds upon the solid foundation that was provided by the 1997 strategy and upon the progress achieved by the Department and the Government as a whole over the last three years in promoting sustainable development. The 2001–03 SDS is focused on priority areas where the Department can make unique and important contributions to sustainable development in Canada and internationally. It makes use of guidance that was provided by the Commissioner of the Environment and Sustainable Development and by other departments and stakeholders, and has been shaped by the Department’s own experience and lessons learned.

The actions contained in this strategy support Finance’s two key goals in sustainable development for 2001–03: ensuring intergenerational equity and more fully integrating economic, social and environmental considerations and objectives into policy making. In pursuing these goals the Department has identified four theme areas or key issues upon which to base action over the next three years: Building the Future; Integrating the Economy and the Environment; Sustainable Development in the Global Economy; and Greening Operations. The Department has also renewed its approach to implementing its strategy, including designating a departmental sustainable development champion and giving new roles to senior management and officials in ensuring the strategy’s implementation.

The Department’s sustainable development strategy, containing its sustainable development action plan for 2001–03, can be found at http://www.fin.gc.ca/toce/2001/sds2001e.html.

Government On-Line

As noted in the 1999–2000 Departmental Performance Report, the Department met the GOL initiative’s Tier-One requirements to have information on-line on all key programs and services, to make available e-forms and to provide automatic e-mail acknowledgements in advance of December 31, 2000, all by means of its Web site.

The Department’s sole program, transfers to provinces and territories, is already fully compliant with Tier-Two requirements to deliver programs and services securely on-line in advance of the year 2004. In addition, because the Department’s services largely consist of information products such as the budget, which are already publicly available on the Department’s Web site, Finance is considered to be compliant with the service component as well. The Department will continue to participate in developing and promoting GOL’s client-centric clustering and integration.

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