Regulations Amending the Interest and Administrative Charges Regulations (Miscellaneous Program): SOR/2018-89

Canada Gazette, Part II, Volume 152, Number 10

Registration

April 26, 2018

FINANCIAL ADMINISTRATION ACT

The Treasury Board, pursuant to subsection 155.1(6)footnote a of the Financial Administration Act footnote b, makes the annexed Regulations Amending the Interest and Administrative Charges Regulations (Miscellaneous Program).

Regulations Amending the Interest and Administrative Charges Regulations (Miscellaneous Program)

Amendments

1 The long title of the Interest and Administrative Charges Regulationsfootnote 1 is replaced by the following:

Interest and Administrative Charges Regulations

2 Section 1 of the Regulations and the heading before it are repealed.

3 The definition financial institution in section 2 of the English version of the Regulations is replaced by the following:

financial institution means an entity, incorporated, continued or formed by or under an Act of Parliament or the legislature of a province or the laws of a foreign state or political subdivision of that state, that holds deposits and honours cheques and other payment instructions on behalf of its clients and includes a bank, a trust company and a cooperative credit society; (institution financière)

4 Subsection 6(3) of the Regulations is replaced by the following:

(3) Nothing in subsection (1) shall prevent a deputy head from entering into an arrangement with a person that calls for repayment to be made in instalments and interest to accrue and be paid on the total amount outstanding.

5 (1) Subparagraph 8(a)(i) of the Regulations is replaced by the following:

(2) Paragraph 8(b) of the Regulations is replaced by the following:

6 Paragraph 11(a) of the Regulations is replaced by the following:

7 The Regulations are amended by replacing “agent” with “authorized agent” in the following provisions:

Coming into Force

8 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Standing Joint Committee for the Scrutiny of Regulations (SJCSR) has identified a number of technical issues with the Interest and Administrative Charges Regulations (the Regulations) and has recommended that the Regulations be amended to address these issues.

Background

The Regulations, made under the Financial Administration Act, relate to interest on overdue accounts, administrative charges for dishonoured instruments, and the ability to waive either of the preceding. The text requiring amendment is part of the original Regulations made by the Treasury Board in 1996.

Objectives

The objectives of the Regulations Amending the Interest and Administrative Charges Regulations (the amendments) are to correct discrepancies between the French and English versions of the Regulations, and to clarify certain regulatory provisions, in response to issues identified by the SJCSR.

Description

The amendments ensure consistent use of terms, correct discrepancies between the French and English versions of the Regulations [in section 2, subsection 6(3), subparagraph 8(a)(i) and paragraph 11(a)], and clarify provisions dealing with the appropriate departmental authority who can enter into an arrangement in subsection 6(3) and the “minimum amount for which a demand for payment would normally be issued” in paragraph 8(b).

“One-for-One” Rule

The “One-for-One” Rule does not apply to these amendments, as there is no change in administrative costs or burden to business.

Small business lens

The small business lens does not apply to these amendments, as there are no costs to small business.

Rationale

The amendments address a number of issues identified by the SJCSR following a review of the Regulations. The amendments help to correct or improve the regulatory text, are housekeeping in nature, and do not impose any costs on stakeholders or the government.

Contact

Kurt Chin Quee
Acting Senior Director
Financial Management Sector
Office of the Comptroller General
Treasury Board Secretariat
Telephone:
613-799-0426
Email:
kurt.ChinQuee@tbs-sct.gc.ca