Interpretation Policy

An interpretation policy is an overarching document that outlines the commitments, practices, and tools to be applied by a department or agency when providing Canadians and businesses with information and guidance on regulatory obligations to be met. It also identifies the conditions under which written responses to questions will be provided.

Departmental/Agency context
Predictability
Service
Stakeholder engagement
Improvement
Frequently asked questions

Departmental/Agency context

Statistics Canada, a member of the Innovation, Science and Economic Development portfolio, produces statistics that help Canadians better understand their country—its population, resources, economy, society and culture.

Under the Statistics Act, the Agency is required to "collect, compile, analyse, abstract and publish statistical information relating to the commercial, industrial, financial, social, economic and general activities and conditions of the people of Canada.” Statistics Canada conducts the Census of Population and the Census of Agriculture and about 350 surveys on virtually all aspects of Canadian life.

In addition to the Statistics Act, the Chief Statistician of Canada under the authority of the Minister of Industry administers the Corporations Returns Act.The purpose of the Corporations Returns Act is to collect financial and ownership information on corporations conducting business in Canada and to use this information to evaluate the extent and effect of non-resident control of the Canadian corporate economy. The Corporations Returns Act requires that an annual report be submitted to Parliament summarizing the extent to which foreign control is prevalent in Canada.

Statistics Canada is responsible for only one regulation: the Corporations Returns Regulations. These regulations outline the reporting requirements and the various reporting thresholds for the Corporations Returns Act.

Predictability

Plain language commitment

Statistics Canada is committed to communicating with Canadians and businesses in a clear and effective manner. As articulated in the Communications Policy of the Government of Canada, to ensure clarity and consistency of information, plain language and proper grammar are used in all communication with the public. At Statistics Canada, guidance and support on this matter are provided by the Agency's Communications Division.

Correspondence with the public related to the Corporations Returns Act, such as introductory and follow-up letters, are reviewed by communications specialists prior to implementation. In addition, as required by Statistics Canada's Policy on the Review and Testing of Questionnaires, survey forms, questionnaires and schedules are reviewed by the Agency's Questionnaire Design Resource Centre to ensure they are well understood by respondents and written at the appropriate literacy level.

Providing guidance and building awareness

Statistics Canada uses several different tools and approaches to help build awareness and understanding of the regulatory requirements of the Corporations Returns Regulations.

On the Agency's website under the module 'Information for Survey Participants', Canadians and businesses can find information on all surveys conducted by Statistics Canada including information on the Information for Survey Participants - Corporations Returns Act.

In an information package sent to respondents, the Agency includes a user guide which explains the regulatory requirements of the Act, provides instructions on how to complete the forms, and lists contact information.

Finally, Statistics Canada takes a proactive approach in determining who should be reporting information required by the Corporations Returns Act. To assist corporations in fulfilling their responsibilities under the Corporations Returns Act, the Agency uses administrative data and internal survey data to identify which corporations need to report. These corporations are then contacted by Statistics Canada and provided with the necessary forms to be filled out. This proactive approach helps to ensure corporations are able to meet their obligations under the Corporations Returns Act.

Responding to questions

Statistics Canada has established a centralized unit to respond to questions related to the Corporations Returns Act and the Corporations Returns Regulations:

Statistics Canada
C/O Industrial Organization and Finance Division
170 Tunney’s Pasture Driveway
Ottawa ON K1A 0T6

statcan.corpreturnsact-loidpm.statcan@statcan.gc.ca

1-866-825-5957
613- 951-9858

All requests are responded to in accordance with the Agency’s Standards of Service to the Public, and in the manner (by email, letter, telephone call, etc.) requested by the client.

Service

Service commitment

Statistics Canada is committed to providing Canadians and businesses with excellence in service. Requests received from the public are treated in a prompt, reliable, courteous and fair manner. The Agency has established centres of expertise, such as Advisory Services and the Enterprise Portfolio Management Program, to support service requests.

All requests by Canadians and businesses are responded to in accordance with the Agency's established Standards of Service to the Public.

Service accountability

As part of Statistics Canada's efforts to efficiently manage its relationships with businesses, the Agency established the position of an Ombudsman for businesses.

The role of the Ombudsman for businesses is to investigate complaints from business survey respondents, including respondents under the Corporations Returns Act, who believe they are unduly burdened or have been treated unprofessionally by Statistics Canada. The Ombudsman's services are impartial and free of charge.

Business survey participants can contact the Ombudsman for businesses by calling at 1-855-634-236 or 1-800-263-1136 or by emailing statcan.ombudsman-ombudsman.statcan@canada.ca.

Staff training

An ongoing training program ensures Statistics Canada officials have the necessary skills and technical knowledge to provide quality service and accurate regulatory guidance. This training encompasses both subject specific training related to the Corporations Returns Act as well as client service related training.

Stakeholder engagement

Commitment to stakeholder engagement

Stakeholder engagement and consultation are long-standing practices of Statistics Canada. This open and inclusive engagement helps to identify concerns, minimize implementation burden, test and improve solutions and facilitate understanding.

When exploring potential changes to the materials which provide information and guidance on the Corporations Returns Act, including how they are delivered, Statistics Canada actively engages stakeholders to obtain their feedback.

Stakeholder engagement mechanisms

To effectively engage stakeholders in the development and review of regulatory information and guidance, Statistics Canada may use a number of vehicles. These include focus groups, direct consultation with a sample of stakeholders and online response mechanisms.

Improvement

Statistics Canada is committed to working with the Treasury Board Secretariat and the Community of Federal Regulators to improve its interpretation policy services and tools and will continue to liaise with clients and stakeholders on regulatory requirements.

For the collection of information under the Corporations Returns Act, Statistics Canada proactively identifies and contacts businesses which should be adhering to the regulation. The Agency sends a letter of invitation which includes links to guidance materials, Q and As, etc. Respondents are asked to complete and return forms, and to contact the Agency if clarification or assistance is required. The Agency gathers feedback through the comment sections on the paper and electronic questionnaires (EQ) as well as through direct requests for information received by phone, e-mail and regular mail. Statistics Canada uses this feedback to improve its documentation and processes on an ongoing basis.

For the collection period which began in January 2015, the Agency received feedback which was used to improve the way information is collected under the Corporations Returns Act. In particular, the following items related to the Agency's interpretation practices/materials were identified:

a new user guide specifically for EQ
additional question-level help for EQ
additional FAQs responding to specific questions on the scope of the regulation.

Statistics Canada has implemented the following items:

a new user guide specifically for EQ. The use of EQ allows Statistics Canada to pre-fill a significant portion of the questionnaire. This reduces respondent burden and it also requires that respondents are provided with more focused guidance when completing EQ. The new user guide incorporates this more focused guidance and will provide considerable assistance to Statistics Canada's EQ respondents.
additional question-level help for EQ. Statistics Canada is providing respondents with additional background on the questions asked in order to facilitate the completion of electronic questionnaires. This new resource is in keeping with Statistics Canada's long-standing commitment to maintaining positive respondent relations. Question-level help is found on Schedule I - Ownership Corporations Returns Act.
It was determined not necessary to develop additional FAQs. This decision was taken in light of the positive feedback received following the success of Statistics Canada's conversion to the EQ format. All FAQs relating to information collection under the Corporations Returns Act are available on the Information for survey participants — Corporations Returns Act — Frequently asked questions

To measure the effectiveness of these changes, Statistics Canada will systematically monitor feedback through the channels noted above to ensure issues specific to the improvement items decrease in number.

Metrics for evaluating implementation:

Number of inquiries related to the use of EQ
Number of inquiries related to the scope of the regulation.

Frequently asked questions

The questions below are meant to provide Canadians and businesses with basic information about Statistics Canada's regulations.

The following list will be updated periodically to reflect any new recurring enquiries.

Corporations Returns Regulations

1. What is the purpose of this regulation?

The Corporations Returns Act mandates Statistics Canada to collect information on ownership and control of Canadian businesses for the purpose of determining the level of foreign control in the Canadian economy.

The purpose of the Corporations Returns Regulations is to inform Canadians and Canadian businesses on how the Corporations Returns Act is applied. The Corporations Returns Regulations describe the current financial thresholds under which Canadian businesses are required to file returns containing the information set out in sections 4 and 5 of the Act. This regulation also provides the required forms, Schedule I – Ownership Return and Schedule II – Financial Information.

2. What are the key elements of this regulation?

The Corporations Returns Regulations cover three key elements:

the financial thresholds,
the schedules (I & II), and
the timeline for filing the information.

Canadian businesses are required to file returns if they have:

assets of 600 million dollars or more; or
revenues of 200 million dollars or more; or
debt obligations or equity owning to non-residents of 1 million dollars or more.

Schedule I – Ownership Return is the key component of this Act. The information collected in this return relates to the share capital of the corporation, ownership of the share capital, its directors and officers and its subsidiaries.

Schedule II – Financial Information is a secondary component that must only be filed if such information has not already been provided to Statistics Canada or the Canada Revenue Agency. The information collected in this return relates to financial statements details such as assets, liabilities, operating revenues and expenses, dividends, depreciation and investments.

Businesses have 90 days following their fiscal year end to file the returns.

3. How does this regulation affect Canadian businesses?

Every individual business that is part of a group of commonly controlled businesses is required to file a Schedule I – Ownership Return if they meet one of the following criteria:

Has combined assets of 600 million dollars or more; or
Has combined revenues of 200 million dollars or more.

In addition, individual business with debt obligations or equity owning to non-residents exceeding 1 million dollars are also required to file a Schedule I – Ownership Return.

Furthermore, Canadian businesses that have not filed a set of financial statements with Statistics Canada or filed their income taxes with Canada Revenue Agency, are required to file a Schedule II – Financial Information Return, regardless of their assets, revenues or debt obligations or equity owing to non-residents.

4. What is the timeline for implementation?

The Corporations Returns Act and the associated regulations are currently in effect.

The Corporations Returns Act, formerly known as the Corporations and Labour Unions Returns Act, was first introduced in 1962 to address concerns of rising foreign control. Since that time, Statistics Canada has prepared annual reports to Parliament monitoring the state of foreign control in the Canadian economy. In January 1999, Parliament officially amended the Act, deleting the requirement of labour unions to report under the Act.

In January 2014, the Corporations Returns Regulations were made by the Governor in Council, and replaced the Corporations Returns and Labour Unions Regulations. These regulations set the new reporting thresholds, renumbered the schedules, and aligned the regulations with the Act. The regulations will be reviewed on a periodic basis to ensure the thresholds and reporting requirements remain valid.

5. Where can I get more information?

Corporations Returns Act
Corporations Returns Regulations
Corporations Returns Act - Foreign Control in the Canadian Economy - Annual Report to Parliament

Information can be obtained by contacting Statistics Canada at:

Statistics Canada
C/O Industrial Organization and Finance Division
170 Tunney's Pasture Driveway
Ottawa ON K1A 0T6