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Repsheet Canada

C-239

Details

Full Title
An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces
First Reading
February 7, 2022, Parliament 44, Session 1
Type
Private Member’s Bill
Full Content
https://www.parl.ca/legisinfo/en/bill/44-1/c-239

Summary

Bill C-239 aims to amend existing legislation to allow the federal Minister of Finance to make agreements with provincial governments, enabling them to collect federal personal and corporate income taxes on behalf of the federal government. The bill specifies that these agreements must include terms for payments from the province to the federal government based on the taxes collected. It also requires measures to lessen the impact on the employment of those affected by the change.

Furthermore, the bill directs the Minister of Finance to begin talks with the Government of Quebec within 90 days of the bill becoming law, with the goal of reaching an agreement within a year to allow Quebec to collect federal income taxes. If an agreement is reached, the Minister of Finance is required to work with international tax authorities to amend existing tax treaties and agreements so the province has direct access to necessary tax information.

The bill addresses a long-standing issue for Quebec residents, who currently file both federal and provincial tax returns. The National Assembly and Government of Quebec have voiced their desire for a single tax return system where the province would be responsible for collecting taxes.

Issues

Economy

  • Jobs

    The bill says that if an agreement is reached for a province to collect federal taxes, measures must be put in place to lessen the impact on people's jobs.

  • Taxation

    The bill would allow the federal government to enter into agreements with provinces where the province would collect federal personal and corporate income taxes. The province would then make payments to the federal government based on the terms of the agreement and taxes collected.