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 change.

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

Wayne Marston Hamilton East—Stoney Creek, ON

If there was controversy about who was—

3:40 p.m.

Conservative

The Chair James Rajotte

Thank you, Mr. Marston.

Mrs. McLeod is next, please.

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

The Chair James Rajotte

Thank you.

Ms. Nash, please.

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

Ted Cook

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

Ted Cook

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

Peggy Nash Parkdale—High Park, ON

What would those additional measures be?

3:40 p.m.

Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance

Ted Cook

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

Ted Cook

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

Sean Keenan

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.