First

Session, 46th General Assembly

Elizabeth II, 2008

BILL 28

AN ACT TO AMEND THE

RETAIL SALES TAX ACT AND

THE TAX AGREEMENT ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

THOMAS W. MARSHALL, Q.C.

Minister of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Retail Sales Tax Act to eliminate retail

sales tax on insurance premiums.

Clause 1 of the Bill would delete

definitions contained in

section 2 of the Act which are no longer required.

In clause 2 of the Bill,

section 16

of the Act respecting tax on insurance premiums would be repealed.

Clauses 3 and 4 of the Bill are

changes required to the Act consequential to the proposed repeal of

section

16. Clause 3 of the Bill repeals

record-keeping requirements related to the imposition of retail sales tax on

insurance premiums, and clause 4 of the Bill repeals the regulation-making

power around exemptions from the application of

section 16.

The amendment contained in clause 5 of

the Bill would repeal a reference in the

Tax Agreement Act to the

imposition of tax on insurance premiums which would no longer be required upon

the repeal of

section 16 of the Retail

Sales Tax Act.

Clause 6 of the Bill is a

commencement clause which would make the changes proposed in the Bill effective

as of January 1, 2008 .

A BILL

AN ACT TO AMEND THE RETAIL SALES TAX ACT

AND THE TAX AGREEMENT ACT

Analysis

RETAIL

SALES TAX ACT

S.2 Amdt.

Definitions

S.16 Rep.

Tax on insurance premiums

S.28 Amdt.

Required books of sellers

S.52 Amdt.

Regulations

TAX

AGREEMENT ACT

5. S.5 Amdt.

Non-application of

section 4

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RETAIL SALES TAX ACT

RSNL1990 cR-15 as

amended

1. Paragraphs 2(d), (f), (g), (h), (

k) and (

l) of

the Retail Sales Tax Act are repealed.

Section 16 of the Act is repealed.

3. Subsection 28(3) of the Act is repealed.

4. Paragraph 52(1)(

i) of the Act is repealed.

TAX AGREEMENT ACT

SNL1996 cT-0.01

as amended

5. Paragraph 5(1)(

b) of the Tax Agreement Act is repealed.

Commencement

6. This Act shall be considered to have come into

force on January

1, 2008 .

Earl G. Tucker, Queen's Printer