Thank you, Mr. Chairman. I am pleased, on behalf of the Standing Committee on Legislation, to present the report on Bill 11, An Act to Amend the Income Tax Act. The Standing Committee on Legislation has completed its review of Bill 11, An Act to Amend the Income Tax Act, and is ready to report its findings to the House. Bill 11 is a consequential amendment to the Income Tax Act of Canada. It follows from the passage on Aril 19, 1994, in the House of Commons, of Bill C-9, An Act to Amend the Income Tax Act (Canada).

The Government of the Northwest Territories is obligated to amend its legislation, as proposed in Bill 11, under the Tax Collection Agreement between the Government of Canada and the Government of the Northwest Territories. The purpose of Bill 11 is to harmonize the taxation of income between the Government of Canada and the Government of the Northwest Territories including the legislation, administration and compliance.

Bill 11 refers directly, in a number of instances, to the federal act. By doing this, the NWT will no longer be required to amend certain sections of the NWT act each time the corresponding federal section is amended. Bill 11 proposes to amend the Income Tax Act of the Northwest Territories in the following ways:

-The bill deletes references to the comptroller general who no longer performs duties under the Income Tax Act;

-Bill 11 adds a reference to the federal act regarding the application of compound interest;

-The bill also adds a reference to the federal act which defines "normal reassessment" period;

-Bill 11 incorporates changes to the federal legislation relating to the definition of "balance-due day;"

-Bill 11 outlines penalties to be applied to individuals who fail to file a tax return, fail to provide information on the tax form, or fail to comply with regulations;

-The bill also adds references to the federal act regarding objections to assessment and appeals to the Tax Court of Canada; and,

-Bill 11 broadens and clarifies certain provisions respecting enforcement.

The amendments proposed in Bill 11 are generally administrative in nature. They do not change the legislation in a substantial way. Rather, they propose to change the manner in which already existing functions are to be administered.

The Standing Committee on Legislation supports the amendments put forward in Bill 11. On Monday, January 9, 1994, committee Members voted to refer the bill to committee of the whole for deliberation. That concludes the report, Mr. Chairman. Thank you.