Finance Committee on May 16th, 2012
Evidence of meeting #59 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was tax.
A recording is available from Parliament.
On the agenda
MPs speaking
Also speaking
- Ted Cook Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance
- Sean Keenan Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
- Brian McCauley Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
- Pierre Mercille Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
- Lucia Di Primio Chief, Excise Policy, Sales Tax Division, Excise Act, Tax Policy Branch, Department of Finance
- Gordon Boissonneault Senior Advisor, Economic Analysis and Forecasting Division, Demand and Labour Analysis, Economic and Fiscal Policy Branch, Department of Finance
- Jane Pearse Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
- Annie Hardy Chief, Financial Institutions Division, Structural Issues, Financial Sector Policy Branch, Department of Finance
- Ling Wang Chief, Financial Institutions Division, Housing Finance Review, Financial Sector Policy Branch, Department of Finance
3:40 p.m.
NDP
3:40 p.m.
Conservative
May 16th, 2012 / 3:40 p.m.
Conservative
Cathy McLeod Kamloops—Thompson—Cariboo, BC
Thank you, Mr. Chair.
I went to the technical briefing, so I don't have any questions at this time about the section.
Thank you.
3:40 p.m.
Conservative
3:40 p.m.
NDP
Peggy Nash Parkdale—High Park, ON
Thank you.
The first section talks a great deal about tax credits and changes in taxation. I'm wondering if you have a sense of the cumulative costs of these changes per budget year.
3:40 p.m.
Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance
Sorry, you're referring to the changes that are set out in part 1 of the budget implementation act. In the actual budget materials at the start of the supplementaries, there's an outline of the cost of the various measures. If you'd like, I can just mention them.
In terms of the measures that are in part 1 of Bill C-38, the measure with respect to RDSP plan holders will be approximately $1 million. The cost with respect to the mineral exploration tax credit for flow-through share investors would be $130 million for the year in which there is the expansion.
Really, those are the only major costs that are outlined in the budget materials for the particular budget measures that are included in this budget implementation act.
3:40 p.m.
NDP
Peggy Nash Parkdale—High Park, ON
For other measures that just continue, there's no changes. So, for example, I'm thinking about oil and gas exploration. There's no change to the taxation of that particular area.
3:40 p.m.
Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance
The budget does have some measures that potentially impact the oil and gas sector; however, they are not included in this budget implementation act.
3:40 p.m.
NDP
3:40 p.m.
Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance
The budget has one measure with respect to the Atlantic investment tax credit and whether oil and gas and mining activities are eligible for that tax credit. The eligibility for that particular tax credit is proposed in the budget to be phased out.
3:40 p.m.
NDP
Peggy Nash Parkdale—High Park, ON
But otherwise, would the $1 billion or so tax subsidies continue to the oil and gas sector?
3:40 p.m.
Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance
I'm not familiar with what particular subsidies or amounts you are referring to.
3:40 p.m.
NDP
Peggy Nash Parkdale—High Park, ON
Okay, I'm just looking at the overall cost. I'm just looking at what the overall impact of tax subsidies and deferrals are on the budget. But under part 1, as the witness has explained, it's about $130 million. So thank you.
I have another question, moving on to a completely different subject, about the Governor General. I'm wondering why other forms of income, such as investment income, earned by the Governor General are not included in the definition of “taxable income” for income tax purposes.
3:45 p.m.
Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
The Income Tax Act currently only exempts income from the Office of the Governor General. Therefore any of his other income, personal income from pensions or investments, is not exempt from tax. So he already pays tax on whatever other types of income he has.
3:45 p.m.
NDP
Peggy Nash Parkdale—High Park, ON
So investment income, that kind of thing, is taxed not through his office but through other tax measures.