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Structure and role by JasoRobinson


									 Department of Finance   Ministère des Finances
 Canada                  Canada

 December 1999
   a nd
 December 1999
                                                                        STRUCTURE and ROLE

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Economic and Fiscal Policy Branch . . . . . . . . . . . . . . . . . . . . . . . . . 8

Economic Development and
 Corporate Finance Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Federal-Provincial Relations and Social Policy Branch . . . . . . . . . . . 13

Financial Sector Policy Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

International Trade and Finance Branch . . . . . . . . . . . . . . . . . . . . . . 17

Tax Policy Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Law Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Corporate Services Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Consultations and Communications Branch . . . . . . . . . . . . . . . . . . . 24

Other Ministerial Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Organization Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

                                                      STRUCTURE and ROLE


The Department of Finance Canada        Because its work directly
is the federal department primarily     affects all Canadians, the
responsible for providing the           Department emphasizes active
Government with analysis and            public consultation – through its
advice on the broad economic            own initiatives and the work of
and financial affairs of Canada. Its    parliamentary committees – on
responsibilities include preparing      policy directions and options.
the federal budget; developing tax      In particular, the Department
and tariff policy and legislation;      recognizes that an open, accessible
managing federal borrowing on           budget-planning process plays an
financial markets; administering        important role in more effective,
major federal funding transfers to      responsive decision making.
provinces and territories; developing
regulatory policy for the country’s     The Department’s Internet site
financial sector; and representing      provides Canadians with
Canada within international             electronic access to a wide range of
financial institutions.                 Department of Finance publications
To meet these challenges, depart-       and material, including key budget
mental staff monitor and research       documents, press releases, speeches
the performance of the Canadian         and economic reports. It can be
economy in all important aspects –      accessed at
output and growth, employment           and allows Canadians to e-mail
and income, price stability and         their concerns to the Minister and
monetary policy, and long-term          the Department.
structural change. The Department
is also vitally concerned with trade,   General inquiries regarding the
monetary affairs and other aspects      Department of Finance can also be
of the global economy that affect       made by phone at (613) 992-1573
Canada’s domestic performance.          or by writing to:
Given the Department’s wide-            Public Affairs and Operations
ranging policy role, departmental        Division
officials work closely with officials   Department of Finance Canada
in other government departments         140 O’Connor St.
to encourage co-ordination and          Ottawa, Ontario
harmony among all federal               K1A 0G5
initiatives that impact on the
economy. As well, the Department        Journalists with questions on
constantly works to encourage and       departmental activities and
assist improved co-operation in its     general economic and fiscal issues
areas of responsibility – especially    should contact the Media Relations
on fiscal and taxation issues –         Unit at (613) 996-8080.
between the federal and provincial

Department of Finance Canada

Background                               Activities
The Department of Finance dates          The main objective of the
back to 1867 and Confederation           Department is to assist the
itself. Prior to the formation of        Government, the Minister of
Canada, each province had an             Finance and the Secretary of
“inspector general” who handled          State (for International Financial
financial affairs. This responsibility   Institutions) in developing fiscal and
was allocated to a “Minister             other economic policies that support
of Finance” under the new                Canada’s economic and social
federal government.                      goals. Specific activities include:

At various times since 1867, the         • analyzing the economic and
Department has included functions          fiscal situation and prospects
now carried out by the Treasury            for Canada and other countries
Board Secretariat, the Comptroller         important to our economy;
of the Treasury, the Royal Canadian      • recommending measures on
Mint and the Canadian International        federal spending, taxation,
Trade Tribunal, as well as responsi-       borrowing and cash management
bilities for tax inspection and old        to meet the goals of the
age and public service pensions.           Government;
In the early 1930s, the Government
transferred detailed operational         • providing advice on
and program responsibilities to            Canada’s balance of payments,
other departments or agencies so           foreign exchange reserves,
that the Department of Finance             international monetary and
could concentrate on essential             financial arrangements, coinage
analytical and policy work.                and related matters;
                                         • participating in international
Department of Finance staff                negotiations and meetings related
numbered 38 in 1867 and                    to trade, finance, taxation and
at one point reached 6,000.                economic development. The
Excluding ministerial staff, the           Department also provides the
Department now has approximately           Canadian funding for interna-
600 employees, half of whom                tional financial institutions
are economists.                            such as the World Bank;

                                                      STRUCTURE and ROLE

• advising on federal-provincial        General Organization
  fiscal and economic relations,
  and undertaking liaison               The Department reports to the
  and negotiation with the              Minister of Finance through a senior
  Department’s provincial               executive comprised of a deputy
  counterparts. The Department          minister and two associate deputy
  is also responsible for funding       ministers.
  federal transfer payments to the
  provinces and territories under       The Clifford Clark Visiting
  programs such as Equalization,        Economist, a post established
  the Canada Health and Social          in 1983 in honour of the late
  Transfer and Territorial Formula      Dr. Clifford Clark, also reports
  Financing agreements;                 to the Minister of Finance.
                                        Occupants of the position advise the
• providing advice, developing          Department on emerging economic
  policies and co-ordinating with       issues and take part in policy
  regulatory agencies regarding         development at the highest level.
  the future direction of the
  nation’s financial sector, particu-   Eight branches are responsible
  larly as it relates to banking and    for economic analysis and policy
  insurance in Canada; and              development, legal services, and
• communicating to Canadians            consultations and communications,
  about the economic and                while corporate services are shared
  fiscal challenges and opportuni-      with the Treasury Board Secretariat.
  ties facing them and the              Each branch has an assistant deputy
  Government’s policy objectives        minister and includes a number
  in these areas.                       of divisions headed by directors.
                                        Branch roles and structures are
                                        outlined in the following pages.

                                        In addition to heading up the
                                        Department of Finance, the Minister
                                        of Finance also reports to Parliament
                                        on the activities of several agencies
                                        such as the Bank of Canada and
                                        the Office of the Superintendent
                                        of Financial Institutions. These
                                        activities are summarized at the
                                        end of this booklet.

Department of Finance Canada


                                            the Branch closely monitors
                    Deputy Minister         economic developments in our major
                  Economic and Fiscal       trading partners. It also prepares the
                     Policy Branch
                                            Department’s publicly distributed
                                            monthly fiscal and quarterly
                                            economic reports, and continuously
                                            tracks fiscal developments at all
                                            levels of government. This mandate
                                            means the Branch plays a lead role in
                   Fiscal Policy Division   the federal budget-making process.

                                            In addition, the Branch
                                            represents Canada at expert-level
                     Economic Studies
                    and Policy Analysis
                                            economic policy discussions at
                         Division           the Organization for Economic
                                            Co-operation and Development
                                            (OECD) and takes the lead role
                    Economic Analysis
                                            in facilitating the economic
                     and Forecasting        surveillance of Canada carried
                         Division           out annually by the OECD and
                                            the International Monetary Fund.

                                            The Branch has three divisions.

                                            Fiscal Policy Division
The Branch analyzes the economic
                                            This division plays the primary role
and fiscal situation of the country
                                            in analyzing the financial require-
and advises the Minister on the
                                            ments of the Government and
Government’s fiscal framework –
                                            tracking the developing fiscal
including revenues, expenditures and
                                            positions of other levels of govern-
debt requirements – and on monetary
                                            ment. It also has lead responsibility
policy. It also provides the Minister
                                            for providing analysis and advice on
with analytical support on a wide
                                            the Government’s fiscal framework
range of economic and financial
                                            and for co-ordinating the
issues related to the Government’s
                                            Department’s advice to the Minister
macroeconomic policies.
                                            on overall federal spending priorities.
Given the complex interaction               As well, the Division prepares the
among international and domestic            Department’s monthly publication,
economic and policy developments,           The Fiscal Monitor.

                                                        STRUCTURE and ROLE

As a result of these responsibilities,   Economic Studies and
the Division plays a key role in the     Policy Analysis Division
budgetary process and drafts budget
papers. In addition, the Division        This is the largest policy research
reviews the form and content of          group in the Department and one
the Public Accounts of Canada and        of the largest in the federal govern-
other statements for which the           ment. Its mandate is to conduct
Minister has responsibility under        policy-focused applied research on
the Financial Administration Act.        major economic and fiscal issues.

The work of the Division takes place     Examples of the Division’s recent
within four groups.                      activities include analysis of the
                                         economic and fiscal implications
• Two groups – Revenue                   of population aging; studies on the
  Forecasting and Analysis               economic implications of policies
  and Expenditure Forecasting            to reduce greenhouse gas emissions;
  and Analysis – prepare the             and analysis of proposals to change
  forecasts and analyses of the          the Canada Pension Plan.
  Government’s fiscal position, and
  monitor revenue and expenditure
  developments that are basic to         Economic Analysis
  fiscal policy and debt manage-         and Forecasting Division
  ment decisions. In addition,           This division tracks, evaluates
  these groups develop policy            and forecasts Canada’s economic
  options that support the               performance. Two groups undertake
  Government’s fiscal objectives.        these activities.
  Forecasts are prepared on both
  a Public Accounts and National         • The Economic Analysis Group
  Income and Expenditure                   provides continuous assessment
  Accounts basis.                          of current economic conditions.
• The Intergovernmental Fiscal             In co-operation with the
  Policy Group tracks the domestic         forecasting group, analysts
  and international fiscal positions       provide sector-specific
  of other levels of government            information for the Department’s
  in order to understand their             Canadian economic forecast.
  financial implications and               A key output is the quarterly
  impact on the economy.                   Economy in Brief, which
                                           provides a departmental view of
• The Fiscal Policy Analysis               recent economic developments.
  Group undertakes short-term
  applied research on
  policy-related fiscal issues.

Department of Finance Canada

• The Forecasting and Model           Seven (G-7) economies. The
  Development Group prepares the      Group is also responsible for the
  Department’s quarterly economic     Department’s computer-based
  forecast and maintains close        forecasting models of the
  contacts with leading private       Canadian economy (e.g., the
  sector forecasters and provincial   Canadian Economic and Fiscal
  governments. As well, it closely    Model), which are used to
  tracks U.S. economic develop-       evaluate the macroeconomic and
  ments and prepares a quarterly      fiscal impact of economic events
  economic and fiscal forecast of     and policy options.
  the U.S. and other Group of

                                                       STRUCTURE and ROLE


                                         • assesses and develops initiatives
                    Deputy Minister        and framework policies
                 Economic Development
                 and Corporate Finance     conducive to economic
                        Branch             growth and job creation; and
  General                                • furthers the Government’s
  Director                                 agenda in the areas of commer-
                                           cialization and privatization
                                           involving government-owned
                                           or government-managed
                        Division           agencies and activities such
                                           as Crown corporations.

                    Corporate Finance    The Branch is divided into two
                     and Privatization   divisions, each with policy sections
                                         devoted to specific issues and
                                         sectors. A separate Policy Analysis
                                         and Co-ordination Section
The Branch is responsible for            undertakes data collection and
advising the Minister on policies and    analysis on a range of concerns and
issues related to key sectors of the     co-ordinates the Branch’s involve-
economy and regions of the country.      ment in federal budget preparations,
As well, it exercises a central          expenditure management and
co-ordination function with respect      priority setting.
to issues before the Cabinet
Committee on the Economic Union.         Economic Development Division
The Branch also undertakes analysis
and provides policy advice in            • Industry Innovation and
support of three main objectives. It:      Telecommunications –
                                           This section provides policy
• ensures that expenditure                 analysis concerning science and
  proposals and contingent                 technology funding; telecommu-
  liabilities are managed within the       nications and the information
  Government’s fiscal parameters           highway; specific industry
  and financial management                 sector issues; and small-
  structure;                               business programs and regional

Department of Finance Canada

• Agriculture and Fisheries –      Corporate Finance and
  This section deals with policy   Privatization Division
  proposals related to the
                                   • Transportation and Corporate
  Government’s agricultural
                                     Analysis – This section analyzes
  support programs and fisheries
                                     programs and policies related to
  resources management.
                                     the future of Canada’s transporta-
• Environment, Energy and            tion system and the federal
  Resources – The work of            government’s involvement in
  this section concerns the          public infrastructure. It also
  Government’s approach to           focuses on issues requiring
  the environment and the            financial analysis associated with
  economy as well as energy          major economic development
  and resource policy.               projects or major corporations
                                     facing financial difficulty.
                                   • Privatization and Crown
                                     Corporations – This section
                                     deals with specific transactions
                                     pertaining to the disposition
                                     of the Government’s Crown
                                     commercial holdings. It also
                                     serves as the departmental focal
                                     point for Crown corporation
                                     policy issues of concern to
                                     the Minister.

                                                        STRUCTURE and ROLE

                        Assistant         for federal transfer payments to the
                     Deputy Minister      provinces and territories – primarily
                      Relations and       Equalization, the Canada Health and
                   Social Policy Branch   Social Transfer and Territorial
   General                                Formula Financing. Activities also
   Director                               include consultations with the
                                          provinces and territories concerning
                     Federal-Provincial   program changes. In addition, the
                        Relations         Division serves as a liaison between
                                          the Department and its provincial
                                          counterparts and acts as a secretariat
                                          for meetings of federal-provincial
                        Social Policy     ministers of finance and treasurers.

                                          Social Policy Division
                                          This division provides advice
                                          on social policy and the financial
The Branch provides policy advice         management of federal social
to the Minister on federal-provincial     programs. It is the principal contact
financial relations and social policy     point between the Department of
issues and their economic and fiscal      Finance and federal departments
implications. It also administers most    responsible for the development of
federal-provincial fiscal arrange-        social policy and the administration
ments. Two divisions reflect the          of social programs.
Branch’s dual policy responsibilities.
                                          Programs and policy areas that
Federal-Provincial                        fall under the Division’s mandate
                                          include income security, pensions
Relations Division
                                          (public and private), employment
This division administers the major       and labour market issues,
federal funding transfers to the          employment insurance, immigration,
provinces and territories, and            post-secondary education, health,
advises on federal-provincial fiscal      housing, communications, culture,
arrangements and federal-provincial       justice, and issues affecting
financial relations in general. It has    Aboriginal peoples, women
policy and program responsibilities       and children.

Department of Finance Canada


                                        Financial Sector Division
                     Deputy Minister
                     Financial Sector
                                        This division develops and evaluates
                      Policy Branch     policies on the regulatory framework
                                        covering Canada’s financial
     General                            institutions. It has four sections.
                                        • Financial Institutions –
                                          This section deals with
                     Financial Sector     corporate issues such as
                         Division         proposed structural changes by
                                          regulated financial institutions,
                                          deposit insurance, Canada
                    Financial Markets
                                          Deposit Insurance Corporation
                        Division          and financial sector Y2K
                                          preparedness. The Section is
                                          also responsible for, and reviews,
                                          the national payments system,
                     Financial Sector     which covers inter-bank fund
                      Review Group
                                          transfers and electronic banking.
                                          As well, it co-ordinates Canada’s
                                          position on international regula-
                                          tory and supervisory issues. The
                                          Group interacts regularly with
The Branch is responsible for             the Office of the Superintendent
providing policy analysis on              of Financial Institutions and
Canada’s financial sector and on          the Bank of Canada.
the regulation of federally chartered
financial institutions (banks, trust    • Policy Development – This
companies and insurance firms).           section deals with financial
It also manages the federal govern-       sector policies and develops
ment’s borrowing program and              legislation and regulations.
provides support to the Minister          A particular focus is the relation-
regarding Crown corporation               ship of financial institutions with
borrowing and financial market and        small businesses and consumers.
exchange rate policy. The Branch is     • Intergovernmental Relations –
composed of two divisions and the         This section is responsible for
Financial Sector Review Group.            the federal government’s
                                          relations with the provincial
                                          governments as well as Canada’s

                                                     STRUCTURE and ROLE

   international relations regarding   • Debt Management – This
   financial services. The latter        section provides policy analysis
   encompasses bilateral relations       and advice relating to managing
   and the administration of             the Government’s public
   Canada’s commitments under            debt and implementing the
   various agreements such as            borrowing program, and provides
   the North American Free Trade         intelligence and analysis about
   Agreement and the General             financial market developments.
   Agreement on Trade in Services.       It is also responsible for relations
   The Section will be negotiating       with credit rating agencies
   new financial services arrange-       and investors.
   ments in the next round of
                                       • Government Financing –
   World Trade Organization trade
                                         This section provides policy
   negotiations (the 2000 Round).
                                         analysis and advice on
• Financial Crimes – This section        financing and debt issues
  develops and analyzes policies         associated with privatizations
  relating to combating money            and commercializations, loan
  laundering and financial crime.        and loan guarantees and other
  The Section also co-ordinates          financing arrangements, and on
  Canada’s position on methods           investment policies for Crown
  being considered in international      corporations. The Section
  fora to combat money laundering        also provides policy advice
  and financial crime.                   on issues involving circulating
                                         coinage and bank notes.
Financial Markets Division
This division provides policy          Financial Sector Review Group
analysis and advice on the federal
                                       This group was created in 1998
government’s financing operations
                                       to help the Minister and the
and on financial market develop-
                                       Government address the rapid pace
ments. The Division is comprised
                                       of change in the financial services
of three sections.
                                       sector and the ensuing policy
• Pensions and Investment              challenges. Its first responsibility
  Policy – This section provides       was to provide analysis and advice
  policy analysis and advice           on proposed bank mergers.
  on exchange intervention,
  management of Canada’s interna-      The key part of the Group’s work has
  tional reserves, financial market    been to assess the recommendations
  developments, and investment         of the Task Force on the Future of
  policies for the Canada Pension      the Canadian Financial Services
  Plan, the public service pension     Sector, which tabled its report in
  plan and other public moneys.        September 1998. This work

Department of Finance Canada

culminated with the June 25, 1999        • Consumer Issues – This section
release of the Government’s                is responsible for consumer-
new policy framework for the               related issues in the financial
sector, contained in Reforming             services sector. It develops
Canada’s Financial Services Sector:        policies and legislation in
A Framework for the Future. The            areas such as access to services,
Group will be drafting the legislation     oversight and redress, and social
and consequential regulations              accountability.
stemming from this new framework
                                         • Structural Issues – This section
and facilitating their passage through
                                           develops policy on structural
Parliament. There are four sections
                                           issues within the financial
in this group.
                                           services sector that relate to
• Systems Issues – This section is         corporate organization, permitted
  active on major financial sector         activities and regulation of
  transactions issues, including           financial institutions. Specifically,
  the merger proposals that were           the Section has provided policy
  put forward last year by four            advice on changes to the
  of Canada’s largest banks, and           ownership regime, credit unions,
  assesses their impact on competi-        the promotion of new entrants
  tion, safety and soundness, and          and the introduction of a holding
  overall public interest. It also         company structure. This work
  co-ordinates the legislative and         encompasses the review of past
  regulatory implementation of             legislative developments, as well
  the new policy framework                 as international considerations
                                           and best practices as they relate
• Strategic Planning and                   to changes in the Canadian
  Communications – This                    financial services sector.
  section is responsible for
  strategic planning and communi-
  cations related to financial
  sector issues and priorities,
  and manages relationships
  with parliamentary committees
  and parliamentarians. It also
  co-ordinates federal-provincial
  consultations on financial
  sector issues and manages
  relationships with agencies
  and other departments.

                                                        STRUCTURE and ROLE


                        Assistant        International Trade
                     Deputy Minister     Policy Division
                   International Trade
                  and Finance Branch     This division is central to the
                                         development and management
   General                               of Canadian trade and investment
   Director                              policies. It also evaluates domestic
                                         economic policies relative to
                                         Canada’s international obligations
                      Trade Policy
                                         and relations with other countries.
                                         Within the Government, the
                                         Division plays a lead role –
                     International       including in international negotia-
                     Finance and         tions – on import policy, especially
                   Economic Analysis
                                         on tariff and trade remedies (anti-
                                         dumping, subsidies/countervail and
                                         safeguards). It is also responsible for
                                         related domestic legislation and
                                         regulations and for the quasi-judicial
The Branch is the focal point for        Canadian International Trade
the Department’s participation in        Tribunal. It also addresses specific
international economic matters.          issues and disputes related to trade
This includes the Department’s lead      in goods and services.
responsibility within the
Government for international             As well, the Division is responsible
financial institutions (i.e., the        for all aspects of Canada’s tariff
International Monetary Fund (IMF),       policy. It develops and recommends
the World Bank Group and the             policy on:
European Bank for Reconstruction
and Development (EBRD)), for             • tariff-relieving measures to
import policy and for participation        foster economic development
in the Group of Seven (G-7)                in Canada and help domestic
industrial countries’ economic             businesses adjust to competitive
policy co-ordination exercises and         pressures;
in the work of the Group of Twenty       • tariff reductions to be offered
(G-20), the new forum of the G-7           to Canada’s trading partners
with other systemically significant        in exchange for greater access
economies. The Branch is composed
                                           to their markets;
of two divisions.
                                         • the content of rules of origin;
                                         • the imposition of emergency
                                           surtaxes on imports that cause,
                                           or threaten to cause, serious

Department of Finance Canada

  injury to Canadian production,         The Division handles the
  and surtaxes to exercise               Department’s participation in the
  Canada’s rights under trade            G-7 Finance Ministers’ Meetings, the
  agreements; and                        G-7/8 Summits and the meetings of
• the establishment of preferential      the G-20 group of industrialized and
  rates of duty on imports from          emerging market countries. It leads
  developing countries.                  the Department’s participation in the
                                         Asia-Pacific Economic Co-operation
In carrying out its tariff policy        Forum, the Western Hemisphere
responsibilities, the Division           Finance Ministers process, and the
reviews representations from the         North American Financial Group. It
private sector and consults with         also co-ordinates the Department’s
stakeholders, such as industry           participation in the Organisation for
sectors, as well as with other govern-   Economic Co-operation and
ment departments and agencies.           Development and looks after
                                         Canada’s participation in such
The Division also plays a major          international bodies as the Group of
role in developing and representing      Ten, the International Monetary and
Canada’s policies and positions          Financial Committee of the IMF
in bilateral and multilateral negotia-   (formerly the IMF Interim Committee)
tions on other trade and investment      and the IMF/World Bank
issues. These issues include trade in    Development Committee.
services; the linkages between trade
and competition policy, environ-         In addition, it co-ordinates the
mental policy, labour standards and      Department’s interests in export
culture; and electronic commerce.        finance, including oversight of
                                         the federal Export Development
                                         Corporation, and the export
International Finance and                financing activities of the Canadian
Economic Analysis Division               Wheat Board and the Canadian
This division leads on many              Commercial Corporation.
aspects of international financial
                                         The Division plays a key role in
relations and analyzes developments
                                         international debt strategy issues.
in the international economy
                                         It leads Canadian participation at
affecting Canada’s economy.
                                         the Paris Club, which focuses on
The Division manages Canada’s            multilateral debt rescheduling
relations with the IMF, the World        exercises, and maintains liaison
Bank Group and the EBRD and              with commercial banks on
comments on both general policy          developing country debt issues.
matters and the financial assistance
                                         Finally, the Division assesses
programs that these agencies
                                         economic and policy developments
provide to individual countries. It
                                         in the major overseas industrial
co-ordinates the Department’s work
                                         and emerging market countries.
on other multilateral development
                                         It also analyzes general systemic
banks and advises on Canada’s own
                                         issues affecting the global economy
development assistance program.
                                         and international financial system.

                                                               STRUCTURE and ROLE


                                               The Branch is responsible for the
                 Assistant                     development and evaluation of federal
              Deputy Minister                  taxation policies and legislation.
             Tax Policy Branch
                                               However, the actual collection of taxes
                                               and interpretation of tax law are the
                                               responsibility of the Canada Customs
                                  General      and Revenue Agency (formerly
                                  Director     Revenue Canada).
Tax Policy                       Legislation
                                               The Branch consists of five
                                               divisions and the Evaluation and
                                               Research Group, each focusing
                  Personal                     on specific aspects of taxation.
                Income Tax                     However, many of the responsibility
                                               areas are shared and projects may
                                               involve officers from more than
                                               one division or group.
                 Sales Tax
                  Division                     Personal Income Tax Division
                                               This division has the primary
                                               responsibility for personal income tax
                 Business                      and tax-based transfers to individuals
                Income Tax                     and families. It undertakes economic
                  Division                     and quantitative analyses of broad
                                               personal income tax issues and
                                               evaluations of specific tax measures
                                               that support the Government’s overall
                 Tax Policy                    social, cultural, economic, regional
                  Division                     and federal-provincial objectives.
                                               Key areas include marginal tax rates,
                                               the link between the tax system and
                                               the economy, capital gains taxation,
                                               child tax benefits, retirement saving
                 Division                      and the underground economy.

                                               Sales Tax Division
               Evaluation and                  This division addresses federal
              Research Group                   consumption taxes, developing the
                                               policies, legislation and regulations
                                               associated with sales tax – the
                                               goods and services tax (GST) and
                                               the harmonized sales tax (HST)
                                               in three provinces – and federal

Department of Finance Canada

excise taxes on tobacco and alcohol.       evolving tax relationship with First
This work involves researching and         Nations under the Government’s
analyzing changes to these taxes           Inherent Right of Self-Government
and developing detailed policy             initiatives.
proposals, including measures
to redress deficiencies raised by
individuals and the private sector.        Tax Legislation Division
                                           In consultation with the Department
Business Income Tax Division               of Justice and Revenue Canada,
                                           the Division drafts tax legislation
This division is responsible for           and monitors its passage through
providing advice and recommenda-           Parliament. It also advises on the
tions on all aspects of corporate and      implications – commercial, legal,
business taxation, including both          policy and administrative – of
corporate income and capital taxes.
                                           proposed measures regarding all
The Division analyzes tax policies
affecting economic development, the        aspects of federal income tax.
natural resource industries, financial
institutions and international taxation.   As well, the Division recommends
Particular areas of study include          international tax policy initiatives.
domestic and international tax             It analyzes tax developments in
competitiveness, the burden of             other countries and is responsible
taxation among sectors, the relation-      for policy changes to Canadian
ship between federal and provincial        international taxation rules and
business tax systems, and the taxation     the negotiation of tax treaties
of privately held corporations. The        with other countries.
Division also analyzes the cost-
effectiveness of tax incentives
in promoting government objectives         Evaluation and Research Group
in areas such as economic develop-
                                           The Group evaluates existing tax
ment, research and development
and environmental policy.                  measures to ensure that they continue
                                           to be relevant, efficient and effective,
                                           and undertakes research relating to all
Intergovernmental Tax                      aspects of the tax system, including its
Policy Division                            relationship to the broader economy.
                                           Evaluations are frequently undertaken
This division provides advice              in co-operation with the policy
and recommendations on federal-            divisions. The Group also produces
provincial and federal-First Nations       the annual publication, Government
taxation arrangements. It is respon-       of Canada Tax Expenditures. Research
sible for the policy and administrative    activities focus on issues that, while
aspects of the federal-provincial          not necessarily directly relevant to
tax collection agreements and              current policy issues, may serve as the
reciprocal tax agreements.                 basis for future policy development.
The Division also develops policies
and negotiates agreements on the

                                                          STRUCTURE and ROLE


                                         Parliamentary Co-ordinator
             Deputy Minister
              Law Branch
                                         In managing the Department’s
                                         legislative program, the Parliamentary
                                         Co-ordinator liaises between
                                         Parliament and the Department;
                                         provides services to the Minister,
                                         the Secretary of State and the
                                         Parliamentary Secretary with
              Parliamentary              respect to parliamentary matters;
              Co-ordinator               and co-ordinates departmental work
                                         concerning parliamentary matters.

              General Legal
                                         General Legal Services Division
                                         Except for tax advice, this division
                                         provides legal services to the Department
                                         in a range of areas, including financial
                                         institutions, federal-provincial relations,
               Tax Counsel
                                         budget implementation and trade issues.
                 Division                It also instructs on and monitors major
                                         litigation of concern to the Department.

                Access to
                                         Tax Counsel Division
             Information and             This division prepares tax legislation
               Privacy Unit
                                         and regulations, and provides internal
                                         legal advice and support on all tax
                                         policy matters. It also monitors and
                                         reports on provincial taxation develop-
                                         ments and assists in federal-provincial
The Branch manages and administers       negotiations on tax issues. Another
all legal services for the Department    responsibility is to monitor, and
of Finance and Office of the             sometimes participate in, court cases
Superintendent of Financial              with implications for tax policy.
Institutions. It also manages
and administers the Access to            Access to Information
Information and Privacy Unit and         and Privacy Unit
the Department’s legislative program.    This unit administers the Access to
All lawyers in the Branch are            Information Act and the Privacy Act
officers of the Department of Justice.   for the Department of Finance. It
The Branch is composed of three          also co-ordinates and prepares the
divisions and one unit.                  Department’s input to the annual
                                         Federal Regulatory Plan. The Unit
                                         can be reached at (613) 943-8850.

Department of Finance Canada


                Assistant          The Branch provides service and
             Deputy Minister       support to the Department and the
                Corporate          Treasury Board Secretariat (TBS) in
             Services Branch
                                   the areas of staff orientation,
                                   informatics, human resources,
                                   financial facilities, information and
                                   materiel management, security, and
                                   the integration and streamlining of
              Administrative       the Department’s own business
                                   processes using innovative systems
                                   and work processes. Other activities
                                   include task force organization, and
                                   co-ordination of the Canada Savings
                Financial          Bond and United Way campaigns.
                 Division          The Branch is composed of
                                   seven divisions.

                 Human             Administrative Services
                 Division          Division
                                   This division is responsible for
                                   the management of administrative,
                Informatics        professional and technical services
                  Division         in support of the daily operations
                                   of the Department of Finance and
                                   TBS. It is divided into four groups:
                                   Facilities Management, Materiel
                 Services          Management, Client Services and
                 Division          the Library.

               Business and
            Integration Division

              Project Office

                                                     STRUCTURE and ROLE

Financial Services Division           Security Services Division
This division is responsible for      This division is responsible for
all financial administration for      physical, personnel, information and
the Department of Finance and TBS.    information technology security, fire
It is composed of five groups:        protection and emergency response.
Financial Planning and Analysis –
Department of Finance, Financial
Planning and Analysis – Treasury      Business and Technology
Board Secretariat, Accounting         Integration Division
Services and Public Debt, Financial   This division provides leadership
Systems Support and the Employee      in the development and implemen-
Orientation Centre.                   tation of policies, processes
                                      and systems to enhance the
Human Resources Division              Department’s capacity to achieve
                                      strategic and business goals through
This division is responsible for      the analysis and reconfiguring of
all human resources activities for    business processes and technology
the Department of Finance and TBS.    integration.
Its four groups include Staff
Relations/Compensation, Human
Resources Services, Organization      The Modernizing
Development/Career Management/        Comptrollership Project Office
Training Services, and Official
                                      This Project Office has been set up
                                      to facilitate the implementation of
Equity/Awards and Recognition.
                                      modern comptrollership in TBS.
                                      The Office will be responsible for
Informatics Services Division         co-ordinating all activities related to
                                      the approved action plan for this
This division is responsible          initiative within TBS and for
for planning, implementing,           maintaining linkages with the other
managing, operating and supporting    pilot departments.
all departmental information
technology services and infrastruc-   Once the TBS pilot is firmly
ture for the Department of Finance    underway the lessons learned will
and TBS. It is divided into three     be applied to the Department
groups: Information Technology        of Finance.
Services, Systems Development and
Network Management.

Department of Finance Canada


                       Assistant          As well, the Division undertakes
                     Deputy Minister      communications research and
                    Consultations and     analysis and monitors the media on
                        Branch            a daily basis for issues of interest to
                                          the Minister, the Secretary of State
                                          and the Department.
                                          Public Affairs and
                     Communications       Operations Division
                    Policy and Strategy
                          Division        This division focuses on external
                                          communications and public
                                          relations activities. It carries out an
                                          extensive media relations program
                       Public Affairs
                      and Operations
                                          that encompasses preparing depart-
                         Division         mental and ministerial announce-
                                          ments and statements and arranging
                                          for briefings and press conferences,
                                          including those for the release of
                                          the federal budget. The Division
The Branch develops communica-            provides editing support for
tions and consultations strategies        departmental publications and
and initiatives that assist the           communications products. It
Minister, the Secretary of State          also provides logistical support
and other branches in developing          for all departmental publications.
policy initiatives, including the         It develops and maintains contacts
annual federal budget. It organizes       with the business community, labour
ministerial and departmental              organizations and social, voluntary
consultations, manages a range of         and other interest groups, and assists
information and public affairs activi-    the Minister, the Secretary of State and
ties, and provides related services.      the Department in consulting with the
Two divisions make up this branch.        public and stakeholders on a range
                                          of economic and fiscal issues. As
Communications Policy                     well, the Division manages the
and Strategy Division                     Departmental Correspondence Centre.

This division develops communications     Also part of the Division is the Visits,
plans and strategies and provides         Conferences and Protocol Unit,
communications advice to the              which provides the Department
policy branches. It also drafts           with expertise and services in the
speeches, press releases, briefing        areas of conference and meeting
papers, publications, multimedia          organization, management and
presentations and material in             logistics, visits by foreign dignitaries
support of the federal budget.            and officials, and other
                                          protocol services.

                                                     STRUCTURE and ROLE


In addition to his responsibility     Canada Deposit Insurance
for the Department of Finance,        Corporation (CDIC)
the Minister reports to Parliament
on the activities of the following    CDIC provides insurance against
government agencies.                  loss of eligible deposits of
                                      up to $60,000 per depositor in
                                      each member institution. Members
Bank of Canada                        include banks, trust companies
The Bank of Canada is the country’s   and loan companies.
central bank.

• It is responsible for regulating
                                      Canada Investment and
  credit and currency, primarily      Savings (CI&S)
  by managing the cash reserves       In the 1995 budget, the Government
  of the chartered banks.             announced a new retail debt
• It manages the public debt          program to provide individual
  and has the sole right to issue     Canadians with better access to
  paper currency for circulation      Government of Canada securities.
  in Canada.                          CI&S (formerly the Canada Retail
                                      Debt Agency) was established
• It is also responsible for          the following August as a special
  overseeing major clearing and       operating agency in the Department
  settlement systems that could       of Finance. Its mandate is to
  pose a systemic risk.               revitalize the federal government’s
• A board of 12 directors             retail debt program through the sales
  appointed by the Government         of government securities such as
  manages the Bank. The Deputy        savings bonds, Treasury bills
  Minister of Finance is an           and marketable bonds. It is also
  ex-officio member of the board.     responsible for reversing the
  Senior officials of the Bank        declining trend in retail (general
  include the Governor, the           public) holdings of federal securities.
  Senior Deputy Governor and
  four deputy governors.              CI&S is headed by a financial
                                      industry executive and staffed by
                                      marketing and sales professionals
                                      responsible for the marketing
                                      strategy, product requirements
                                      and distribution associated with
                                      Canada’s largest debt program.

Department of Finance Canada

Office of the Superintendent            Canadian International
of Financial Institutions (OSFI)        Trade Tribunal (CITT)
OSFI has two main functions.            The CITT is a quasi-judicial,
                                        independent agency that reports
• It regulates financial institutions   to Parliament through the Minister
  and employer-employee pension         of Finance. It conducts inquiries
  plans under federal jurisdiction,     into economic, tariff, trade and
  contributes to public confidence      commercial matters, and carries
  in the Canadian financial system      out anti-dumping, countervailing
  and protects depositors, policy-      and safeguard injury inquiries. It
  holders, pension plan beneficia-      considers appeals of decisions by
  ries and creditors. To meet this      Revenue Canada relating to customs
  goal, OSFI maintains a compre-        and excise matters. The CITT also
  hensive supervisory framework         reviews complaints by potential
  aimed at determining whether          suppliers regarding procurement
  financial institutions and pension    conducted by the federal govern-
  plans are in sound financial          ment as well as procurement-related
  condition and in compliance           complaints under the Agreement
  with statutory requirements.          on Internal Trade.
• OSFI also provides actuarial
  services for other government         The Minister of Finance also has
  departments in support of social      charge of the management and
  security, insurance, annuity          direction of the Consolidated
  and other financial programs.         Revenue Fund, and the supervision,
                                        control and direction of all matters
                                        relating to the financial affairs of
                                        Canada not assigned by law to any
                                        other minister. The Auditor General
                                        reviews the accounts of the
                                        Government and certain federal
                                        government agencies and reports the
                                        results of his examination annually
                                        to the House of Commons.

Organization Chart
December 1999


                                                                                                                            Secretary of State


                                                                                                                            Deputy Ministers

                                                   Clifford Clark
                                                Visiting Economist

                                ADM                     ADM                  ADM                                                                                                      ADM
         ADM                                                                                             ADM                                                        ADM
                        Economic Development     Federal-Provincial    Financial Sector                                       ADM                Counsel/ADM      Corporate      Consultations and
    Economic and        and Corporate Finance      Relations and                                  International Trade                             Law Branch
                                                                        Policy Branch            and Finance Branch     Tax Policy Branch                      Services Branch   Communications
 Fiscal Policy Branch          Branch           Social Policy Branch                                                                                                                 Branch
Department of Finance Canada

                 For further information about the Department’s
                     programs and activities, please contact:

                               Public Affairs and
                                Operations Division
                               Department of Finance Canada
                               140 O’Connor Street
                               Ottawa, Ontario
                               K1A 0G5

                               Tel: (613) 992-1573
                               Fax: (613) 995-6938

             Visit the Department’s Web site at:

               For copies of budget papers and other publications
                        and documents, please contact:

                               Distribution Centre
                               Department of Finance Canada
                               300 Laurier Avenue West
                               Ottawa, Ontario
                               K1A 0G5

                               Tel: (613) 995-2855
                               Fax: (613) 996-0518


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