Highlights

  • The Canadian Minister of the Environment has added new substances to the Domestic Substances List, easing their use in the marketplace.
  • Six First Nations have been included in the First Nations Fiscal Management Act, enabling them to access financial and economic development services.
  • Corrections were made to a Regulatory Impact Analysis Statement concerning the Fort William First Nation Sawmill Regulations, clarifying tax obligations.
  • Amendments to GST/HST regulations have been made, including increased rebates and adjustments for charities and small businesses in Prince Edward Island, and the introduction of an anti-avoidance rule.
  • Canada has expanded sanctions against Russia, targeting individuals and entities involved in cultural propaganda and the military-industrial complex, in response to the conflict in Ukraine.
  • New prohibitions on arms-related transactions with Russia have been implemented, along with additional sanctions to pressure Russia to cease military actions and reduce nuclear risks.

Canada Expands Domestic Substances List with New Chemicals and Polymers

The Canadian Minister of the Environment has issued an order to amend the Domestic Substances List (DSL) by adding several new substances. These substances have been manufactured or imported into Canada in quantities that exceed the limits set by the New Substances Notification Regulations (Chemicals and Polymers). The necessary assessment period for these substances has passed, and there are no restrictions under the Canadian Environmental Protection Act, 1999 concerning their use. The order lists specific chemical substances by their registry numbers and includes both individual chemicals and polymers. The amendments to the DSL will take effect on the day the order is registered. [Source]

Canada Expands Domestic Substances List with 11 New Entries Under CEPA

The Canadian Minister of the Environment has approved the addition of 11 new substances (10 chemicals and polymers and 1 living organism) to the Domestic Substances List (DSL) under the Canadian Environmental Protection Act, 1999 (CEPA). These substances have been assessed and are no longer subject to the New Substances Notification Regulations for chemicals, polymers, or organisms. The DSL is an inventory of substances that are legally recognized as being in the Canadian marketplace.

Substances new to Canada must undergo a notification and assessment process to identify potential environmental and human health risks and to determine if control measures are necessary. The DSL is updated regularly to include new substances that meet specific criteria, such as being manufactured or imported into Canada in a significant quantity or being in commerce or used for commercial manufacturing purposes in Canada between January 1, 1984, and December 31, 1986.

The addition of these substances to the DSL means they are no longer considered new and will not be subject to the same assessment requirements, thus facilitating their access for businesses. The orders to add these substances to the DSL do not impose any new regulatory requirements, and therefore, do not impact modern treaty rights or obligations. The orders are administrative and do not result in any incremental compliance costs for stakeholders or enforcement costs for the government. Compliance with the orders is monitored in accordance with the Canadian Environmental Protection Act: compliance and enforcement policy. [Source]

Six New First Nations Added to First Nations Fiscal Management Act Schedule

The Canadian Minister of Crown-Indigenous Relations has approved an order to amend the schedule to the First Nations Fiscal Management Act (FNFMA) to include six new First Nations: Batchewana, Eskasoni, Lyackson, Nation Huronne Wendat, Prophet River, and Tahltan. This amendment allows these First Nations to access services provided by national institutions established under the FNFMA, such as the First Nations Finance Authority, the First Nations Tax Commission, and the First Nations Financial Management Board.

The FNFMA, in effect since April 1, 2006, aims to support economic development in First Nation communities by enhancing their property taxation, bond financing, and financial management capabilities. By being added to the schedule, these First Nations can now choose to implement property tax systems, certify their financial management practices, and access bond financing for infrastructure and economic development, using property tax revenues or other income streams.

The order was made in response to requests from the respective First Nations and did not require additional consultations beyond those already conducted within their communities. The amendment is expected to enable these First Nations to participate more fully in the Canadian economy, improve governance capacity, and support community development without imposing any costs or regulatory burdens on small businesses or triggering the one-for-one rule. There are no anticipated environmental effects or gender-based analysis plus (GBA+) issues associated with this order. The initiative is not part of any regulatory cooperation work plan.

The inclusion of these First Nations in the FNFMA schedule is intended to foster economic growth, attract investment, and enhance the well-being of their communities. There are no specific compliance, enforcement, or service standards associated with this initiative. [Source]

Correction to Fort William First Nation Sawmill Regulations Impact Analysis

An erratum was issued to correct errors in the Regulatory Impact Analysis Statement for the Fort William First Nation Sawmill Regulations. The original statement inaccurately claimed that the Fort William First Nation would benefit from tax savings due to the lands on which the sawmill is located being set apart as reserve lands, implying that provincial corporate taxation would not apply. This was incorrect as the establishment of reserve lands and the implementation of the Sawmill Regulations do not exempt the First Nation from federal and provincial corporate tax laws of general application. The errors in the original statement did not affect the project, the enforcement of the regulations, or the collection of taxes. The corrected rationale indicates that while there are costs associated with the creation of the regulations for Canada, the economic and social benefits for the Fort William First Nation community are significant. The sawmill operation is financially viable, provides employment, and fosters further economic activity and development on the reserve. [Source]

Canadian Government Updates GST/HST Regulations for Charities, NPOs, and Anti-Avoidance Measures

The Canadian government has amended various GST/HST regulations to implement changes related to the Goods and Services Tax/Harmonized Sales Tax. These changes include:

  1. An increase in the partial rebate of the provincial component of the HST for charities and qualifying non-profit organizations in Prince Edward Island (P.E.I.) from 35% to 50%. This adjustment is retroactive to January 1, 2023.

  2. Adjustments to the Streamlined Accounting (GST/HST) Regulations to reflect new remittance rates for small businesses and eligible public service bodies in P.E.I., effective from January 1, 2023, due to the increased rebate.

  3. The introduction of an anti-avoidance rule in the New Harmonized Value-added Tax System Regulations to prevent transactions that are not for bona fide purposes other than to benefit from the increased rebate rate in P.E.I. This rule is retroactive to February 24, 2022.

  4. Consequential amendments to the New Harmonized Value-added Tax System Regulations, No. 2, to maintain consistency with recent clarifications in the Excise Tax Act regarding the GST/HST printed book rebate.

  5. The addition of the charity Twice Upon a Time/Il était deux fois to the list of not-for-profit literacy institutions eligible for the GST/HST federal printed book rebate, enabling them to claim a full rebate on eligible purchases.

These regulatory changes are designed to fulfill Canada’s obligations under the Comprehensive Integrated Tax Coordination Agreement with P.E.I. and to provide clarity and certainty regarding the application of GST/HST rules. The Canada Revenue Agency will administer the amendments. [Source]

Canada Expands Sanctions on Russian Individuals and Entities for Propaganda and Cultural Destruction in Ukraine

The Canadian government has amended the Special Economic Measures (Russia) Regulations to impose sanctions on additional Russian individuals and entities. These sanctions are a response to Russia’s use of cultural figures to promote propaganda about its invasion of Ukraine and its systematic destruction of Ukrainian culture. The amendments add 19 individuals and 4 entities to the sanctions list, which includes Russian celebrities, senior officials in Russia’s culture and education sectors, museum directors, a paramilitary leader, and a propagandist, as well as the Russian Ministry of Culture and Ministry of Science and Higher Education, among others.

The sanctions are part of Canada’s broader response to Russia’s military aggression against Ukraine, which includes over Can$5 billion in assistance to Ukraine, military aid, cyber defense, and support for Ukrainian troops. Canada has also provided economic support, humanitarian assistance, and is working to counter disinformation. Additionally, Canada has created immigration streams for Ukrainians.

The sanctions are aligned with measures taken by international partners, including G7 and European countries, and are intended to impose economic costs on Russia, undermine its military capabilities, and express condemnation of its actions in Ukraine. The sanctions are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency, with penalties for non-compliance ranging from fines to imprisonment. The amendments are designed to have minimal impact on Canadian businesses and citizens, and a preliminary assessment indicates they are unlikely to have significant environmental effects or impact on vulnerable groups. [Source]

Canada Expands Sanctions on Russia, Targeting Arms Trade and Military-Industrial Sector

The Canadian government has amended the Special Economic Measures (Russia) Regulations to further restrict economic relations with Russia due to its ongoing military actions in Ukraine. The amendments prohibit the import, purchase, or acquisition of arms and related material from Russia, as well as the export, sale, supply, or shipment of such materials to Russia or any person in Russia. There are exceptions for non-lethal military equipment intended for humanitarian use and for Canadian Forces on official duties.

Additionally, the amendments ban any financial, technical, or other services related to arms and related material to Russia. The definition of arms and related material includes weapons, ammunition, military and paramilitary equipment, and their spare parts.

The regulations have been updated to include 20 new individuals and 21 entities on the sanctions list, targeting those connected to Russia’s military-industrial complex, private military companies, and the nuclear sector.

The measures align with international partners’ actions and aim to impose economic costs on Russia, undermine its military capabilities, and pressure it to cease actions that increase the risk of nuclear incidents, especially at the Zaporizhzhia Nuclear Power Plant.

The enforcement of these regulations is the responsibility of the Royal Canadian Mounted Police and the Canada Border Services Agency, with penalties for non-compliance ranging from fines to imprisonment. The amendments are designed to prevent the circumvention of sanctions through third countries and to ensure that Canadian exports do not indirectly support Russia’s military efforts. [Source]

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