Administrative Burden Baseline

In its Red Tape Reduction Action Plan, the Government committed to build on the efforts of the Paperwork Burden Reduction Initiative by requiring departments, through the Administrative Burden Baseline, to provide a count of the requirements in federal regulations that impose an administrative burden on businesses.

All federal regulations that are sponsored by the Minister of Finance that have requirements that impose administrative burden on business are identified in the tables below.  The total June 30th 2014 baseline count is 4,693.

The Count of Tax Regulations

The total June 30, 2014 baseline count for tax regulations is 1,818.

The Canadian tax system functions on a self-assessment basis and tax legislation and regulations tell taxpayers how to compute income or sales subject to tax and how to avail themselves of certain measures such as deductions or credits.   While some of the requirements included in tax regulations impose an administrative burden on businesses, taken in a broader context, many of these requirements reduce the compliance burden for business overall or describe what is required to benefit from a relieving measure. 

  1. Many federal tax regulations are required to implement agreements that eliminate duplicative taxes at the provincial level, with benefits that include:  a lower compliance burden for taxpayers, lower administrative costs for governments, and economic benefits from a more competitive and neutral tax system.
    • Approximately 400 requirements on business relate to the provincial component of the Harmonized Sales Tax (HST), which is levied under federal legislation.  These federal regulatory requirements minimize the compliance and administrative burden imposed on businesses by eliminating substantial duplicative provincial requirements.  As a result of the HST, businesses no longer have to comply with separate federal and provincial sales tax systems nor deal with different tax administrators.  The Province of Ontario estimated that joining the HST reduced the compliance burden on businesses in that province by $500 million annually.
  2. Tax regulations are often the mechanism for relieving reporting and record-keeping requirements that are imposed by the related legislation.
    • In order to simplify how small businesses calculate the amount of GST/HST to remit, the GST/HST Regulations provide optional simplified accounting methods, such as the one that eliminates the need to separately keep track of the GST/HST paid on most purchases and collected on sales.  These streamlined accounting regulations have a count of 23.
    • To eliminate the requirement for employees to keep detailed records of their actual automobile expenses, the Income Tax Regulations specify per-km formulas and rates that can be used to reimburse employees that use their personal vehicle for business purposes.  A count of 15 relates to this aspect of the regulations.
  3. Tax regulations are also often required in order to provide tax relief in specific defined circumstances.
    • Seven regulatory requirements relate to computations and filings required for a corporation to make a capital dividend election.  This election allows for the tax-free payment of dividends from a corporation’s capital dividend account.
    • Seven regulatory requirements relate to the elections businesses may make regarding the depreciation of certain classes of assets.  For example, a business may elect to have certain assets within the same class (transmission pipelines) depreciated as separate classes, which may save them taxes or simplify their accounting.
    • Three regulatory requirements relate to the computation of an amount deductible from a business’s income regarding its depletion allowances, which can benefit businesses by simplifying the calculation of deductions for the depreciation of resource related assets.
The Count of Tax Regulations
Title of the Regulation SOR Number 2014 Count
Interest Rates (Air Travellers Security Charge Act) Regulations 2007-267 0
Listed Airport Regulations 2004-293 0
Interest Rates (Excise Act, 2001) Regulations 2006-229 0
Agriculture and Fishing Property (GST/HST) Regulations 91-39 4
Air Transportation Tax Regulations, 1992 93-294 8
Amalgamations and Windings-Up Continuation (GST/HST) Regulations 91-33 0
Artists’ Representatives (GST/HST) Regulations 91-25 0
Automobile Operating Expense Benefit (GST/HST) Regulations 99-176 0
British Columbia HST Regulations 2011-121 3
Closely Related Corporations (GST/HST) Regulations 91-21 4
Credit for Provincial Relief (HST) Regulations 2011-57 6
Deduction for Provincial Rebate (GST/HST) Regulations 2001-65 2
Disclosure of Tax (GST/HST) Regulations 91-38 0
Electronic Filing and Provision of Information (GST/HST) Regulations 2010-150 14
Equivalent Courses (GST/HST) Regulations 91-27 0
Federal Book Rebate (GST/HST) Regulations 98-351 0
Federal Sales Tax Inventory Rebate Regulations 91-52 3
Federal Sales Tax New Housing Rebate Regulations 91-53 2
Financial Services and Financial Institutions (GST/HST) Regulations 91-26 2
Games of Chance (GST/HST) Regulations 91-28 0
Health Care Services (GST/HST) Regulations 91-23 0
Industrial Product Price Indices Adjustment Regulations 90-672 0
Interest Rates (Excise Tax Act) Regulations 2006-230 0
Joint Venture (GST/HST) Regulations 91-36 0
Mail and Courier Imports (GST/HST) Regulations 91-32 0
New Harmonized Value-added Tax System Regulations 2010-117 84
Natural Gas and Gas Liquids Tax Regulations 82-359 0
New Harmonized Value-added Tax System Regulations, No. 2 2010-151 107
Non-Taxable Imported Goods (GST/HST) Regulations 91-31 6
Nova Scotia HST Regulations, 2010 2010-99 17
Property Supplied by Auction (GST/HST) Regulations 2001-66 0
Public Service Body Rebate (GST/HST) Regulations 91-37 0
Returnable Beverage Container (GST/HST) Regulations 2008-48 0
School Cafeteria Food and Beverages (GST/HST) Regulations 91-29 0
Security Interest (GST/HST) Regulations 2011-55 1
Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations 2001-171 171
Specified Crown Agents (GST/HST) Regulations 99-175 0
Specified Tangible Personal Property (GST/HST) Regulations 91-20 0
Streamlined Accounting (GST/HST) Regulations 91-51 23
Taxes, Duties and Fees (GST/HST) Regulations 91-34 0
Value of Imported Goods (GST/HST) Regulations 91-30 12
Sub-Total: Regulatory Requirements for GST/HST and Excise   469
Income Tax Regulations c. 945 1349
Total: Tax-Related Regulatory Requirements   1818

The Count of Financial Sector Regulations

The total June 30, 2014 baseline count for financial sector regulations is 2,875.

The Count of Financial Sector Regulations
Title of the Regulation SOR Number 2014 Count
Bank Holding Company Proposal Regulations 2004-199 35
Complaints (Banks, Authorized Foreign Banks and External Complaints Bodies) Regulations 2013-48 12
Disclosure on Continuance Regulations (Federal Credit Unions) 2012-267 5
Federal Credit Union Conversion Regulations 2012-268 117
Foreign Bank Representative Offices Regulations 92-299 25
Notice of Branch Closure (Banks) Regulations 2002-104 6
Registration of Bank Special Security Regulations 92-301 14
Canada Deposit Insurance Corporation Application for Deposit Insurance By-law 2006-236 442
Canada Deposit Insurance Corporation Data and System Requirements By-law 2010-292 14
Canada Deposit Insurance Corporation Deposit Insurance Information By-law 96-542 5
Canada Deposit Insurance Corporation Differential Premiums By-law 99-120 280
Canada Deposit Insurance Corporation Deposit Insurance Policy By-law 93-516 112
Canada Deposit Insurance Corporation Joint and Trust Account Disclosure By-Law 95-279 1
Canadian Payments Association By-law No. 1 — General 2003-174 52
Canadian Payments Association By-Law No. 2 — Finance 2003-175 6
Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System 2003-346 3
Canadian Payments Association By-law No. 6 — Compliance 2003-347 10
By-law No. 7 Respecting the Large Value Transfer System 2001-281 12
Notice of Branch Closure (Cooperative Credit Associations) Regulations 2002-105 6
Mutual Company (Life Insurance) Conversion Regulations  99-128 160
Air Canada Pension Plan Solvency Deficiency Funding Regulations 2004-174 3
Assessment of Pension Plans Regulations 2011-317 1
Canadian Press Pension Plan Solvency Deficiency Funding Regulations, 2010 2010-245 5
Pension Benefits Standards Regulations, 1985 87-19 101
Solvency Funding Relief Regulations, 2009 2009-182 16
Solvency Funding Relief Regulations 2006-275 28
Pooled Registered Pension Plans Regulations 2012-294 15
Cross-border Currency and Monetary Instruments Reporting Regulations 2002-412 86
Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations 2007-121 92
Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations 2001-317 167
Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations 2002-184 1,037
Protection of Residential Mortgage or Hypothecary  Insurance Regulations 2012-231 1
Notice of Branch Closure (Trust and Loan Companies) Regulations 2002-106 6
Total:  Financial Sector-Related Regulatory Requirements   2875

Departmental contact:

Consultations and Communications Branch
Department of Finance Canada
14th floor
90 Elgin Street
Ottawa, Ontario K1A 0G5

Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-995-1455

For more information

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.