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These amendments to the Excise Tax Act implement measures
included in the Ways and Means Motions tabled on December 10, 1992,
March 30, 1993 and April 30, 1993, as well as certain small business
simplification measures announced on September 3, 1993. In addition,
this enactment corrects some minor technical deficiencies in the Act.
The principal measures contained in this enactment are summarized
below.
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(1) Small and Seasonal Businesses: allows businesses that have
virtually no sales during one or more reporting periods to elect not to file
returns for those periods; also makes it easier for new registrants to take
advantage of annual filing options.
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(2) Charities: provides a simpler ``small supplier'' test for charities
based on gross revenue; provides an input tax credit for allowances paid
to their volunteers; removes the 20% clawback on their input tax credits
claimed in respect of meal and entertainment expenses.
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(3) Health Care Services: broadens the homemaker services GST
exemption; provides an exemption for the conversion of vehicles for the
disabled; clarifies that a prosthesis installed in a health care facility in
conjunction with an exempt health care service is also tax exempt;
ensures that GST-free property and services, such as the supply and
dispensing of prescription drugs by a pharmacist, is zero rated rather
than exempt when paid for or reimbursed under a provincial health care
plan.
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(4) Agriculture: clarifies the tax-free status of supplies of rabbits
raised for food.
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(5) Financial Institutions and Other Exempt Suppliers: clarifies
the requirement to apportion input tax credits for tax on business inputs
on the basis of their use or consumption in making taxable supplies.
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(6) Payments and Remittances: requires payments or remittances
by registrants of $50,000 or more to be made at a financial institution.
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