Thank you, Madam Chair. Madam Chair, I am here to present Bill 62, An Act to Amend the Income Tax Act, No. 2.
The main purpose of Bill 62 is to make various legislative retroactive housekeeping measures to the territorial income tax legislation to comply with the Canada-Northwest Territories Tax Collection Agreement. These amendments keep territorial legislation current and harmonized with the federal income tax legislation. Specifically, the proposed changes include:
- Remove a reference to a repealed federal provision about an option for trusts to pay tax;
- Exclude a reference to the federal COVID-19 relief measures for an additional GST/HST payment;
- Exclude a reference to the federal temporary wage subsidy under COVID-19 relief measures;
- Include special federal rules for determining the Northwest Territories Child Benefit as part of COVID-19 relief measures;
- Include a reference to the federal special rule for the disability supports deduction as part of COVID-19 relief measures;
- Align the Northwest Territories Act with the federal administrative rules in compliance with the Canada-Northwest Territories Tax Collection Agreement;
- Include a reference to federal rules on evidence for notices sent to persons in compliance with the Canada-Northwest Territories Tax Collection Agreement;
- Include a reference to federal provisions relating to certain allowed or disallowed deductions in the calculation of the federal foreign tax credit; and,
- Remove ambiguity in certain terms relating to tax on split income for multi-jurisdictional tax filers.
Bill 62 also includes an amendment to allow the Canada Revenue Agency to share Northwest Territories-specific taxpayer data with Finance Canada. Sharing this data with Finance Canada assists in designing tax policy, and it benefits the GNWT as it allows Finance Canada to provide a more detailed analysis of the implications of federal tax measures on the territorial tax system. The Canada Revenue Agency has a number of stringent security agreements in place to safeguard Northwest Territories taxpayer data from being used inappropriately. That concludes my opening remarks, Madam Chair.