We will conclude with Mr. Wallace.
Evidence of meeting #64 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was income.
A recording is available from Parliament.
Evidence of meeting #64 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was income.
A recording is available from Parliament.
1 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
Thank you, Mr. Chairman.
Mr. Poschmann, one of the reasons these meetings were convened was to talk about the extension of a tax holiday from four years to ten years. I didn't hear anything in your remarks about whether this committee should consider such an extension. Do you have any opinion on this?
1 p.m.
Director of Research, C.D. Howe Institute
The honeymoon period, if that's the right phrase, is very much an exercise in line drawing and judgment. I don't think there's any way around that. The four-year period is a reasonable adjustment frame for corporations or affected trusts to rearrange their affairs. To let it drag on would let the problem fester unnecessarily.
If you think about the old capital allowance rules where you only got to claim 50% appreciation in the first year an asset was acquired, why not 49% or 51%? As I said, it's an exercise in line drawing and not everyone's going to be happy with it.
1 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
I appreciate that.
We've heard from 28 delegations, not including government members but including the finance minister. The vast majority, based on the circles I've made, have been in favour of the decision that has been made. Some who have come before us have been directly affected as either sellers or owners of income trusts.
Mr. Poschmann, should I be listening to Mr. D'Alessandro, the executive officer for Manulife; David Dodge from the Bank of Canada; Jeffrey Olin from Desjardins Securities; Kevin Hibbert from Standard & Poor's; or Kevin Dancey from the Canadian Institute of Chartered Accountants? We've heard from the National Pensioners and Senior Citizens Federation, someone who studies at the University of Toronto, and at least 11 members of finance from across the country, to name a few. Ms. Urquhart has been here a couple of times.
Do you not think they are right?
1 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you, Mr. Wallace.
I believe that was a rhetorical question, Mr. Poschmann.
On behalf of the committee, I sincerely thank you all for the time you've taken to be with us today.
We are recessing for a brief moment, and then we will engage in further discussion in camera.
[Proceedings continue in camera]