Evidence of meeting #57 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was knowledge.
A video is available from Parliament.
4:25 p.m.
National Tax Partner, BDO Canada LLP, and Member, Tax Policy Committee, Chartered Professional Accountants of Canada
Yes, income while she's alive, but it's quite common that she wouldn't have access to capital. It's the capital that usually gives rise to the capital gains.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
At the same time, it would make sense that it is taxable property and someone has to pay that tax. In this case, your spouse would still benefit from the trust that was set up for her benefit.
4:25 p.m.
National Tax Partner, BDO Canada LLP, and Member, Tax Policy Committee, Chartered Professional Accountants of Canada
I think what we're looking for is that the trust itself should be the primary debtor for the tax, not the spouse's estate.
4:25 p.m.
National Tax Partner, BDO Canada LLP, and Member, Tax Policy Committee, Chartered Professional Accountants of Canada
When I discussed this issue with the Finance people early on, I'd suggested that you should be allowed to transfer it to the estate if you want to, if it's beneficial, but it shouldn't be mandatory.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
Thank you for that.
Another piece of this particular bill is to crack down on tax evasion while ensuring tax fairness.
You're in the tax business. It's a difficult job. It's a very complicated sector, without question. However, you agree with tracking offshore tax evasion, I'm sure, and cracking down on that with all the force of Canadian law.
4:25 p.m.
National Tax Partner, BDO Canada LLP, and Member, Tax Policy Committee, Chartered Professional Accountants of Canada
Yes, and I know CPA Canada is probably in the same boat as I am. I believe the taxpayer should pay their fair share. It's unfair to people who pay their taxes, that other people don't.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
That's very good. Thank you for that.
From a tax preparing point of view, you talked a little in your opening statement of the complexity, the fact that the tax regime is a very complicated regime. However, we have brought in a number of measures to get rid of red tape and to simplify the tax system. I realize we have a way to go; I'm not suggesting we're finished.
But from your point of view, of someone who works in the system every day, are you seeing some of the results of that?
4:25 p.m.
National Tax Partner, BDO Canada LLP, and Member, Tax Policy Committee, Chartered Professional Accountants of Canada
Yes, we're seeing the results of that for sure. Most of it seems to be more at the CRA end, I guess, in our direct dealings.
At CPA Canada, though, we believe there should be a comprehensive review of the tax system to ensure simplification.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
We agree.
Mr. Kennah, your case is a particularly interesting one. Do you own all the old Teleglobe properties?
4:25 p.m.
Co-President, IT International Telecom Inc.
No. Our employees came from Teleglobe. We were the marine department of Teleglobe.
When they were privatizing, and so on, we went on our own and started a company that carried on in a similar business, but we branched out to much more international and to shipping as well.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
So you only lay fibre optic cable. You're not part of the old Teleglobe cable that's still copper-based, the millions of kilometres of it out there in the ocean.
4:25 p.m.
Co-President, IT International Telecom Inc.
There are no more copper cables.
4:25 p.m.
Co-President, IT International Telecom Inc.
They're all fibre optic, and 95% of the world's—
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
But of the ones that were already there, have they all been taken up?
4:25 p.m.
Co-President, IT International Telecom Inc.
They haven't been taken up; they've been left in place.
4:25 p.m.
Conservative
4:25 p.m.
Co-President, IT International Telecom Inc.
It's better for the environment to leave them there, believe it or not.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
That's interesting.
You made a point about Arctic development that I think is an extremely legitimate point, the fact that it would be good, it would be nice, let's say, to have a Canadian company doing Canadian work. However, we often want to have value for the taxpayers' dollar. You compete all around the world, in other countries, against other companies. Some of them would be domestic companies in the places you work, I assume.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
Really, we would expect to tender every bid, I would assume, of any glass or fibre optic cable being laid in Canada, whether it's in the Arctic or whether it's a new cable going to Newfoundland, on a competitive bid process. And you work within that.
4:25 p.m.
Co-President, IT International Telecom Inc.
Yes. In fact, that would be fine. But it would be nice if there were a Canadian company left to bid on that rather than having a bunch of Canadians work for foreign companies.
4:25 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
I appreciate that.
What I want to drill down to here is the fact that in a competitive process it's fair and all the bidders are bonded. They all have security profiles and they're all bonded to do that job.
4:30 p.m.
Co-President, IT International Telecom Inc.
That's standard practice. Yes.