Finance Committee on May 1st, 2014

[Scott Brison, Liberal, Kings—Hants, NS]

What limits are in place to prevent FINTRAC from further sharing that information? Can FINTRAC, for instance, share it with any organizations outside of government? Can they share it with other countries?

[Ted Cook]

I'll just turn to the exact provision because really we're talking about information that FINTRAC provided to the CRA in the first place.

I'll just flip to the exact provision. I would just note that the actual amendment provides that it's to an official of FINTRAC “solely for the purpose of enabling the Centre to evaluate the usefulness of information provided by the Centre”. So it's solely for that purpose. The underlying information that was provided in the first place is FINTRAC's information.

[Scott Brison, Liberal, Kings—Hants, NS]

Okay.

I have a question on the offshore tax informant program. This program was launched in January 2014. How much money is this program expected to bring in? Has the government set any targets? Budget 2013, which announced the program, didn't include any estimates.

[Ted Cook]

I think in fact there are no specific targets as yet with respect to the amount of money to be brought in. There is some experience with the U.S. having its own programs. In at least one of their programs they have raised between $93 million and $250 million a year on their program since 2006.

[Scott Brison, Liberal, Kings—Hants, NS]

For Canadians following this committee today, there may be some questions about the state supporters of terrorism and which countries this measure would apply to. But also, what is the process of adding a country to the list as a supporter of terrorism?

[Miodrag Jovanovic]

I can't really talk about the process of that act because I'm obviously not an expert in that domain. But what I can tell you is that there is already a robust legal framework for addressing terrorist financing and a very strong legislation regulating charities that protects the sector from potential abuse. Obviously terrorist financing is a complex and multi-faceted issue, and that framework already includes legislation including the Criminal Code, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and the Special Economic Measures Act.

What this measure in the budget does is add another piece of legislation to that tool box, if you will. But I cannot really talk more about the process for listing these countries under that act.

[The Chair, Conservative, James Rajotte]

Thank you.

Your time is up, Mr. Brison.

I'm going to move to part 2.

I will thank our two officials, and I believe we'll be asking Mr. Mercille to come forward, please.

Part 2 includes amendments to the Excise Tax Act, other than GST/HST measures.

Welcome, Monsieur Mercille. We'll let you get settled here.

We'll start with Mr. Cullen, please.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Thank you, Chair.

I'll keep this incredibly brief. It's not a question for Mr. Mercille, just more a position on our processes.

Mr. Keddy was asking about or learning about how we're doing here today. Our preoccupation is that our ability to get through parts 5 and 6 around FATCA and certainly the details of almost 30 sections in part 6.... The opposition is not going to ask any questions on part 2 to enable as much time as possible for the committee to get into some of the more complex parts of this omnibus legislation. We'll leave it at that, but we have some worries about our process here this afternoon, as you are always concerned with and aware of time.

[The Chair, Conservative, James Rajotte]

Okay, thank you.

I have Mr. Keddy, and, colleagues, we have four hours in total with officials and the minister, so if you can, be very brief in our questions and answers to get through everything.

We'll go to Mr. Keddy.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Mr. Chairman, relative to Mr. Cullen's statement, we're in agreement, so I'll refrain from my question.

[The Chair, Conservative, James Rajotte]

Okay.

Mr. Brison, any questions on part 2?

[Scott Brison, Liberal, Kings—Hants, NS]

Yes, I do have questions on part 2, starting with the GST/HST in the health care sector.

This exemption for services provided by acupuncturists and naturopathic doctors is only available in certain provinces. In which provinces are Canadians not able to benefit from this measure?

[Pierre Mercille, Senior Legislative Chief, GST Legislation, Department of Finance]

I'm going to correct you. The exemption applies across Canada for both the GST and the HST. Maybe I can explain why there's confusion here.

There are administrative criteria that are used to decide which health care professions would benefit from the exemption, and one of those criteria is that the profession is regulated as a health care profession in at least five provinces. When that criteria is met, usually an association will make representations to the government asking to be exempt, and then a decision to exempt will be made by the minister. Once it's exempt, it's exempt across Canada.

[Scott Brison, Liberal, Kings—Hants, NS]

Which provinces currently—

[Pierre Mercille]

Oh, you want to know which ones—

[Scott Brison, Liberal, Kings—Hants, NS]

—would not benefit because of the provincial regulatory differences?

[Pierre Mercille]

No, they will all benefit.

The way it works is that we list acupuncturists or naturopathic doctors, and they have to be regulated in a province, but as I say, the exemption will apply across Canada. If an acupuncturist is in a province that has no regulation, as long as they meet the qualification to be regulated in another province, that would be good enough to benefit from the exemption.

[Scott Brison, Liberal, Kings—Hants, NS]

Thank you.

To go on to GST and HST on paid parking, the measure to charge these taxes on parking provided by charities in cases where 90% or more of the parking is usually provided for free.

I recall there was a similar provision for public sector bodies in Bill C-4. I understand that measure resulted from a tax dispute with a number of municipalities, where about $50 million or $60 million of revenue was at stake. Have there been any tax disputes with charities regarding this measure, and if so, how much money was at stake?

[Pierre Mercille]

We're not aware of any. It was made to be uniform across the board.

[Scott Brison, Liberal, Kings—Hants, NS]

Okay. That's all for part 2.

[The Chair, Conservative, James Rajotte]

That's it for part 2? Okay.

Thank you very much, Monsieur Mercille.

I'll just ask, colleagues, are there questions for part 3, amendments to the Excise Act, 2001? There are questions. Okay, we'll bring the official forward for part 3.

Mr. Coulombe, welcome to the committee.

I'll start with Mr. Keddy.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Thank you, Mr. Chairman.

I have one very brief question on tobacco products. I think most of the countries have plotted initiatives to increase tax on tobacco and apply them on tobacco products, those taxes straight across the board on tobacco products.

Do we have any reasonable idea on how much revenue is actually expected to come from the increased tax on tobacco?

[Gervais Coulombe, Chief, Excise Policy, Sales Tax Division, Department of Finance]

Thank you for the question.

Actually, if you take the budget documentation that was released on February 12, I think on page 319, you will have the details per year of the increased revenues. They amount to about $3.3 billion over the next five years, plus the two months of the last fiscal year.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Perfect, thank you.

That's it.

[The Chair, Conservative, James Rajotte]

Thank you very much, Mr. Keddy.

Mr. Brison, please.