Alberta Record

· Order in Council / Financial Statutes Amendment Act proclamation · enacted

Oic 89 2023 financial statutes amendment act proclamation

Proclaims sections 8 and 9 of the Financial Statutes Amendment Act, 2022, into force on July 1, 2023, and October 1, 2023, respectively, bringing new legislative provisions into effect.

High impactInstitutional independenceCentralization of powerThe public, directlyIndependent watchdogs

What changed

  • Orders a Proclamation to issue, bringing section 9 of the Financial Statutes Amendment Act, 2022, into force on July 1, 2023.
  • Orders a Proclamation to issue, bringing section 8 of the Financial Statutes Amendment Act, 2022, into force on October 1, 2023, with the exception of subsections (2)(k), (3)(a), and (30).
  • Establishes the new Tobacco Tax Regulation, providing a comprehensive framework for the administration and enforcement of the Tobacco Tax Act.
  • Introduces specific requirements for the registration, licensing, and permitting of exempt sale retailers, duty-free shop operators, and tax collectors.
  • Expands the Minister's authority to refuse, suspend, or cancel registrations and licences based on criteria such as compliance with other tax acts, honesty, integrity, and potential detriment to the lawful tobacco industry.
  • Authorizes the Minister, or an authorized officer, to conduct background checks on applicants and associated individuals (directors, officers, employees, contractors, non-arm's length persons) for eligibility determination.
  • Mandates detailed requirements for the marking of tobacco products, cartons, and cases, and specifies accounting system obligations for compliance.
  • Outlines procedures for record-keeping, information disclosure, and the seizure and return of items under the Act.
  • The definition of "online marketplace" is clarified to include digital accommodation platforms facilitating transactions for residential units.
  • "Online brokers" are introduced as a new category of entities subject to the Tourism Levy Regulation, expanding the scope of regulated parties.
  • Collection periods for operators are revised based on the number of sleeping rooms, and a standard calendar quarter is established for online brokers.
  • The Minister is granted discretion to designate alternative collection periods for operators and online brokers, deviating from the standard periods.
  • The Minister is granted discretion to require security from operators and online brokers to ensure compliance with the Act and Regulation.
  • Online brokers are now explicitly required to maintain and keep records as specified by the Minister.

Why it matters

  • The proclamation brings specific provisions of the Financial Statutes Amendment Act, 2022, into legal effect, altering the legislative framework governing financial matters in Alberta.
  • The staggered effective dates for different sections indicate a phased implementation of the legislative amendments introduced by the Financial Statutes Amendment Act, 2022.
  • The specified exceptions for section 8 mean certain subsections are not brought into force by this Order, indicating a partial implementation of that section.
  • Centralizes significant regulatory and enforcement authority over the tobacco industry within the Minister of Finance's portfolio.
  • Increases the compliance burden and oversight for businesses involved in the tobacco supply chain through new licensing, marking, and reporting requirements.
  • Expands the scope of government inquiry into the personal and financial backgrounds of individuals associated with tobacco businesses, which may raise privacy considerations.
  • Aims to strengthen the integrity and control of the lawful tobacco market in Alberta, potentially impacting the illicit tobacco trade.
  • The broad discretionary powers granted to the Minister in licensing and enforcement may introduce new considerations for administrative fairness and transparency.
  • Expands the scope of the Tourism Levy to include digital accommodation platforms and the entities facilitating these transactions, broadening the tax base and regulatory reach.
  • Centralizes decision-making regarding collection periods, security requirements, and record-keeping by granting the Minister new discretionary powers over regulated entities.
  • Increases the regulatory burden and compliance obligations for "online brokers," a newly defined category of entities operating in the digital accommodation sector.
  • Introduces potential for varied application of collection periods and security requirements across different operators and online brokers due to ministerial discretion.

Rights affected

  • Privacy — Control over personal information held by governments and institutions.

Other governance concerns

  • Limited detail within the Order in Council regarding the substantive changes introduced by the proclaimed sections of the Act.
  • Ministerial discretion in licensing and enforcement decisions
  • Scope of background checks and potential privacy implications for individuals
  • Potential for arbitrary application of 'detriment to the integrity of the lawful tobacco industry' criteria
  • Increased ministerial discretion in setting collection periods, security, and record-keeping requirements.
  • Potential for inconsistent application of rules across regulated entities due to discretionary powers.
  • Expanded regulatory burden on online accommodation platforms and brokers.

Primary sources (3)