Bill C-62 · 40th Parliament · Stephen Harper
Provincial Choice Tax Framework Act
An Act to amend the Excise Tax Act
Government bill. Became law.
- IntroducedDec. 4, 2009
- Debated in principleDec. 8, 2009
- Studied by a committeeDone
- Passed its first chamberDec. 9, 2009
- Passed the second chamberDec. 14, 2009
- Became lawDec. 15, 2009
Leading supporters
Ranked by the part each played: who is responsible for the bill, who carried it, and who spoke for it most.
- Stephen HarperPrime Minister
- Stephen GreeneSenate · Sponsor in the Senate
- Paul SzaboDescribes provincial harmonization plans and federal bill as necessary for tax cuts to proceed.
- Ted MenziesPresents the bill as straightforward legislation confirming provinces' right to choose their tax system.
- John McCallumCalls it a simple matter of provincial jurisdiction and defends provinces' right to choose the HST.
- Daniel PailléQuestions how anyone could oppose a bill allowing provincial tax harmonization and praises Quebec's positive experience with it.
- Jean-Yves LaforestStates that Bloc Québécois members support Bill C-62 as framework legislation for provincial choice.
- Brent RathgeberAffirms provincial jurisdiction to choose the tax and questions opponents' consistency on prior GST cuts.
Who carries this bill
Arrows run from the person responsible to those who answer to them on this bill. The critic leads the Senate’s scrutiny and answers to no one on it.
What it set out to do
The Library of Parliament does not prepare Legislative Summaries for appropriation bills, ways and means bills and borrowing-authority bills. The following is a short summary: On 4 December 2009, the Minister of Finance introduced Bill C-62, An Act to amend the Excise Tax Act (Provincial Choice Tax Framework Act), in the House of Commons and it was given first reading. Bill C-62 amends the Excise Tax Act to implement a harmonized value-added tax framework in Ontario and British Columbia. The bill puts in place a framework to accommodate any province’s decision to have the provincial component of the harmonized value-added tax under the Act apply in that province by achieving a common understanding with Canada as to • the imposition of the provincial component of the harmonized value-added tax in respect of that province; • the application of any element of provincial tax policy flexibility, including rate flexibility for the provincial component of the harmonized value-added tax, rebate flexibility in respect of the provincial component of the harmonized value-added tax and the temporary recapture of certain input tax credits in respect of the provincial component of the harmonized…
Summary by the Library of Parliament.
Where members stand
That the Bill be now read a second time and referred to the Standing Committee on Finance. · 2009-12-08 · Passed
How it changed on the way
73% of the text as introduced was changed or removed by the time it became law (9,779 words introduced, 9,510 passed).
substantial changeintent mostly kept
The bill passed with its core framework for harmonized sales tax in Ontario and British Columbia intact but gained one new subsection on direct-seller adjustments. Minor wording and numbering tweaks also appeared between introduction and royal assent.
- Added a new rule allowing direct sellers to adjust net tax when exclusive products move between participating provinces.
After: “and (d) prescribed conditions, if any, are satis”
How precisely it is written
mixedChallenging the law: HardDisputing a charge: Moderate
The bill uses many defined terms and fixed dates for core concepts like participating provinces and harmonization dates, but relies heavily on regulations to fill in rates, manners, classes, and circumstances. This creates objective anchors in places but leaves wide scope for later administrative choices.
Open to argument
“an amount determined in prescribed manner”
Repeated use of 'prescribed' shifts key calculations to regulations rather than fixing them in the statute.“the particular person knows or ought to know”
Subjective knowledge standard invites factual disputes over what a person should have known.“a person of a prescribed class”
Leaves the definition of large businesses and other key actors to future regulations.
Clear-cut
“July 1, 2010 in the case of Ontario or British Columbia”
Specific calendar date fixes the start of the new system without discretion.“the rate set opposite the name of the participating province in Schedule VIII”
Points to an external schedule for objective rates when no prescription exists.
Discretion. Ministers and officials hold broad power to prescribe rates, manners, classes of persons and property, times, circumstances, and rebates through regulations under sections such as 277.1 and the definitions of tax rate and specified provincial input tax credit.
Challenging the law itself. The provisions are technical tax rules with defined triggers and no obvious overbreadth or vagueness that would readily engage Charter s. 7 or s. 8 doctrines.
Disputing a charge under it. A person could dispute application of 'prescribed manner' calculations or the 'ought to know' standard, but fixed dates and schedules limit room for argument on core obligations.
Read by a language model from the royal assent text; every quoted phrase appears in the bill. A reading of the drafting, not legal advice.
Did it work?
no evaluation found
No statutory or parliamentary reviews, PBO or Auditor General reports, departmental evaluations, court rulings, or peer-reviewed studies were identified assessing whether the Provincial Choice Tax Framework Act achieved its objectives of enabling provincial harmonized VAT frameworks. A single narrow 2011 CRA internal audit examined administrative implementation systems for Ontario and British Columbia HST but did not evaluate the Act's broader policy effectiveness.
- Harmonization of the Sales Taxes of Ontario and British Columbia AuditauditThe 2011 CRA internal audit found that PSTAR-related data flows accurately through CRA systems and the straddle allocation formula functioned as intended, providing assurance on administrative implementation of HST in Ontario and British Columbia.
Who lobbied on it
No lobbying registration naming this bill is loaded.
Stages and dates from LEGISinfo.