Highlights

  • The CRA is revoking the charitable status of various organizations due to self-request or non-compliance with tax filing requirements.
  • The CITT is holding public hearings on appeals by Korhani of Canada Inc. and Best Buy Canada Ltd. regarding import duty valuation and tariff classification.
  • The CRTC has updated its website with regulatory documents and is inviting public interventions for a Part 1 application from a media company.
  • A National Defence investigator has been authorized to run for a municipal councillor position in Quebec.
  • Environmental occurrences notification agreements have been established under the Canadian Environmental Protection Act with several provinces and territories.
  • The Minister of Transport has issued an interim order for pilotage areas in Belledune and Sheet Harbour to address safety and environmental risks.
  • Adyen N.V. has been approved to establish a financial establishment in Canada.
  • Various Governor in Council appointment opportunities are announced, focusing on a merit-based process and diversity.
  • Insurance companies plan to amalgamate, and RBC intends to amalgamate with HSBC entities in Canada.
  • United American Insurance Company plans to request the release of its Canadian assets.
  • Proposed amendments to regulations aim to address issues with formaldehyde emissions, fire safety standards for tents, vessel operation restrictions, and the dissemination of vehicle safety recall information to enhance public safety and reduce regulatory burdens.

Canadian Regulatory Updates on Charitable Status, Trade Appeals, CRTC Applications, and Public Service Election Participation

The Canada Revenue Agency (CRA) has announced its intention to revoke the charitable status of various organizations following requests from the charities themselves or due to non-compliance with the filing requirements of the Income Tax Act. The revocation is effective from the date of publication in the Canada Gazette. The list includes a diverse range of charities across Canada, such as educational foundations, religious organizations, cultural groups, and community service providers.

The Canadian International Trade Tribunal (CITT) will conduct public hearings for two appeals. The first involves Korhani of Canada Inc., which is contesting the valuation method for duty on imported rugs, specifically whether certain freight costs can be deducted. The second appeal by Best Buy Canada Ltd. concerns the tariff classification of Insignia-brand wine or beverage coolers, debating whether they should be classified as household refrigerators or other refrigerating equipment.

The Canadian Radio-television and Telecommunications Commission (CRTC) has updated its website with detailed decisions, notices, and other regulatory documents. It has also posted a Part 1 application from Les Médias de l’Épinette Noire Inc. for CINN-FM in Hearst, Ontario, inviting public interventions.

The Public Service Commission has granted Robert Basque, an investigator at National Defence, permission to run for a Councillor position in the Municipality of Notre-Dame-de-la-Salette, Quebec, in an upcoming by-election.

Lastly, the CRA has sent notices to charities that have failed to meet the Income Tax Act’s filing requirements, proposing to revoke their charitable status. This includes a range of organizations from different sectors and regions. [Source]

Recent Environmental, Pilotage, and Financial Regulatory Updates in Canada

The Minister of the Environment has established environmental occurrences notification agreements with the governments of Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, and Yukon under the Canadian Environmental Protection Act, 1999. These agreements are accessible on the CEPA Environmental Registry website.

The Minister of Transport has issued Interim Order No. 2 for the Belledune and Sheet Harbour Compulsory Pilotage Areas to address urgent safety, health, or environmental risks in pilotage services. The orders define the compulsory pilotage areas and set out conditions for ships subject to compulsory pilotage, including exemptions and qualifications for pilotage certificates. Previous interim orders for these areas have been repealed.

Adyen N.V. has received approval from the Minister of Finance to establish a financial establishment in Canada, as per the Bank Act.

The Privy Council Office announces various Governor in Council appointment opportunities, emphasizing a transparent, merit-based process that seeks gender parity and representation of Indigenous peoples and minority groups. A healthy, respectful, and harassment-free work environment is expected for all appointees. Open positions span various organizations and roles, including directors, chairpersons, commissioners, and other leadership positions across different sectors. [Source]

Upcoming Insurance and Banking Sector Amalgamations and Asset Release in Canada

Definity Insurance Company, Perth Insurance Company, The Missisquoi Insurance Company, and Waterloo Insurance Company plan to amalgamate into one entity named Definity Insurance Company, with the head office in Waterloo, Ontario. They will apply for letters patent of amalgamation after June 26, 2023, aiming for an effective date of January 1, 2024.

Royal Bank of Canada (RBC) intends to amalgamate with HSBC Bank Canada, HSBC Trust Company (Canada), HSBC Mortgage Corporation (Canada), and HSBC Finance Mortgages Inc., continuing as Royal Bank of Canada with the head office in Montréal, Quebec. This is contingent on RBC acquiring all shares of HSBC Bank Canada as per an agreement dated November 29, 2022. The amalgamation will follow the completion of this acquisition.

United American Insurance Company plans to request the release of its assets maintained in Canada after July 22, 2023. Policyholders or creditors opposed to this release must file their opposition by the same date.

The issuance of letters patent for both amalgamations and the release of assets is subject to the normal review process and the discretion of the Minister of Finance or the Superintendent of Financial Institutions, respectively. [Source]

Proposed Amendments to Canadian Formaldehyde Emissions Regulations to Ease Industry Burden

The Canadian government is proposing amendments to the Formaldehyde Emissions from Composite Wood Products Regulations to address a drafting oversight and other issues raised by stakeholders. The original regulations, which came into force on January 7, 2023, set limits on formaldehyde emissions from composite wood products to protect Canadians’ health. However, stakeholders pointed out that the requirement for panel manufacturers to use accredited laboratories for routine quality control testing was not intended and would impose an excessive burden. Additionally, the requirement for downstream supply chain parties, such as retailers, to maintain declarations of certification for all composite wood panels in finished goods was also burdensome.

The proposed amendments aim to clarify that only primary testing, not routine quality control testing, must be performed by an accredited laboratory. They also intend to simplify record-keeping requirements by allowing a single manufacturer’s attestation to affirm that only certified panels were used in finished goods, rather than multiple declarations for each type of panel. Minor amendments are also proposed to enhance enforceability, align with recent changes to the U.S. Toxic Substances Control Act (TSCA) Title VI, and correct minor technical aspects and language discrepancies between the English and French versions of the regulations.

The government has consulted with industry stakeholders, including the Composite Panel Association and the Retail Council of Canada, to address their concerns. The proposed amendments are expected to reduce unintended compliance costs and administrative burdens, particularly benefiting small businesses and maintaining alignment with U.S. regulations to minimize trade barriers. The amendments are set to come into force three months after publication in the Canada Gazette, Part II. Stakeholders have the opportunity to comment on the proposed amendments or request a board of review within specified time frames. [Source]

Canada Proposes Enhanced Fire Safety Standards for Tents and Children’s Play Tents

The Canadian government is proposing updates to the Tents Regulations to improve fire safety standards for tents and children’s play tents. The current regulations, based on outdated standards, may not adequately address the flammability risks of modern tent materials and could lead to excessive use of flame retardant chemicals, which have associated health risks.

The proposed changes involve adopting the Canadian General Standards Board’s CAN/CGSB-182.1-2020 standard, which is more suited to contemporary tent materials. This standard is expected to reduce the need for flame retardant chemicals, as it allows for alternative flammability criteria such as mass loss, and updates conditions for flaming debris.

Additionally, the proposal includes amending the Toys Regulations to cover children’s play tents not intended for outdoor use, which would otherwise fall outside the scope of the Tents Regulations. These play tents would need to meet the flammability performance requirements of the International Standards Organization’s ISO 8124-2:2014 standard.

The proposed regulations would also exclude certain products from the Textile Flammability Regulations if they are already regulated under the Toys Regulations. To ease the transition for businesses, flexible periods are proposed to allow for the depletion of existing stock and adjustment to the new requirements.

The government has consulted with stakeholders, including industry members, associations, and testing laboratories, who generally support the proposed changes. The updates aim to maintain safety protections while reducing regulatory burdens and health risks associated with flame retardant chemicals. The proposed regulations would come into force on the day of publication in the Canada Gazette, Part II, with a 365-day transitional period for compliance. [Source]

Proposed Amendments to Canadian Vessel Operation Restrictions for Enhanced Safety and Environmental Protection

The Canadian government is proposing amendments to the Vessel Operation Restriction Regulations to address seven key issues: engine power limits, updating exemptions, technical requirements on signage, wake surfing restrictions, new restrictions on certain bodies of water, designation authority for enforcement personnel, and administrative corrections.

The amendments aim to allow local authorities more flexibility in setting engine power limits on all types of bodies of water, not just those in public parks or controlled access areas. This change is intended to make enforcement easier, as engine power is simpler to verify than speed.

Exemptions in the regulations will be updated to explicitly include those with federal fishing permits, aligning them with existing exemptions for provincial permit holders. Additionally, an exemption will be formalized for Indigenous peoples exercising their rights under section 35 of the Constitution Act, 1982, to ensure clarity and avoid compliance issues.

Technical requirements for signage will be updated by incorporating them by reference into a Transport Canada publication, allowing for quicker and more efficient updates to signage guidance for local authorities.

Concerns about the environmental impact of wake surfing have led to a proposal to create a new schedule specifically for wake surfing restrictions, separate from other towing activities. This would allow local authorities to target wake surfing without affecting other activities like water skiing or tubing.

The proposal includes 21 new restrictions for six bodies of water to address safety, environmental, and public interest issues. These restrictions involve speed limits, prohibitions on certain vessels, and towing and wake surfing activities, tailored to the specific conditions of each water body.

To enhance enforcement capabilities, the amendments would designate port enforcement officers employed by the Windsor Port Authority and update titles and departmental names for enforcement officers in Quebec and Saskatchewan.

Administrative corrections will be made to ensure accurate and up-to-date information in the regulations, including correcting geographical coordinates for certain bodies of water.

The proposed regulations are expected to improve safety, protect the environment, and align with public interest, with the benefits outweighing the costs. The costs associated with the amendments are estimated at $3.17 million over ten years, with local authorities and the government incurring these costs. The amendments are also expected to have no significant impact on small businesses and do not trigger the one-for-one rule. Public consultations have been conducted, and the amendments align with the government’s commitment to allowing local authorities to manage their waterways. The amendments will come into force on the day they are registered. [Source]

Canada Proposes Vehicle Safety Recall Information Amendments to Enhance Road Safety

The Canadian government is proposing regulatory amendments to improve the dissemination of safety recall information for vehicles and related equipment. The amendments aim to address the issue of approximately 6.6 million vehicles on Canadian roads with unresolved safety recalls, which pose risks to both occupants and other road users. The changes would require companies to publish recall information on their websites in a standardized and accessible manner, including an online search tool using the vehicle identification number (VIN) for certain designated companies.

The rationale behind these amendments is to make recall information more readily available to vehicle owners, equipment owners, and the general public, thereby increasing recall completion rates and enhancing road safety. The amendments would apply to vehicle and equipment manufacturers and importers, with the expectation of reducing property damage, injuries, and fatalities resulting from unresolved defects and non-compliances.

The proposed changes would introduce different requirements for companies based on their designation by the Minister of Transport. High-volume vehicle companies (designated companies) would be required to provide a VIN lookup tool on their websites, while all other companies (non-designated) would need to publish basic recall information online. The information must be available in both official languages and remain on the companies’ websites for at least 10 to 15 years, depending on the type of product.

The costs associated with these amendments are estimated at $1.20 million over ten years, with the majority borne by the industry for website development and maintenance. Small businesses would see a total cost of $39,212 over the same period. The benefits, although not quantified, are expected to include increased safety for Canadians and a decrease in written re-notification costs for manufacturers and importers due to improved recall completion rates.

The proposed amendments are aligned with similar regulations in the United States, with some differences to accommodate Canadian requirements, such as bilingual information and inclusion of additional vehicle classes. The amendments are not expected to have differential impacts based on gender or other identity factors. Compliance will be monitored by Transport Canada through website audits, and enforcement measures will be taken as necessary. The regulations will come into force on the day of their publication, with a 180-day grace period for non-designated companies to comply. Designated companies will have one year from their designation date to comply with the VIN tool requirement. [Source]

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