Finance committee  To calculate the $192 million, essentially what we did was take our 2006 estimate, remove the one-time effects, as Mr. Normand suggested as appropriate, and then multiplied it by six, so implicitly in that we're assuming the market will be flat over the ten years going forward, w

Finance committee  I cannot see how that was handled appropriately in their coming up with the $3 billion estimate. Based on what I read in terms of market growth assumptions, including the front page of yesterday's business section in the National Post, indicating that perhaps in 18 months 75% of

Finance committee  If it would help the committee, I have tables that provide this, which were filed as exhibits last time.

Finance committee  Yes, the income trust market would have to grow significantly over the next 10 years in order for that to occur and offset the legislative changes.

Finance committee  That's correct. In the consultation paper our estimates for tax-exempt unit holders were utilized. We shared data. Obviously we had done a lot of discussion with industry, etc., and that information was used. We updated our data last year, and then our report of November 23, 2005

Finance committee  It might tilt things the other way if they excluded everything. There might be tax gains there. But let me say I believe deferred taxes should be included with respect to income trust accounts, from a tax-exempt account. But on the other side of the ledger, I believe deferred tax

Finance committee  Thank you, Mr. Chair. I am pleased to return to provide additional evidence on the tax leakage issue. As stated on February 1, we believe the Department of Finance sharply overestimated tax leakage at $500 million for 2006. Our figure, after making appropriate adjustments to th

Finance committee  I'll be filing further exhibits that describe that, but from—

Finance committee  I have great respect for these gentlemen as well. The major thing is that our interpretation on the materials provided on Tuesday was that the future legislated tax changes, as corporate tax reductions, were not factored in. That's our interpretation based on the information we

Finance committee  With respect to the legislated changes, it was my reading of the document that they weren't included. Again, I didn't notice them there, but I guess that's something the Department of Finance could confirm. With respect to the statutory rate on energy trusts, it did fall from 20

Finance committee  Again, it comes down to the legislated tax changes. My understanding of the numbers presented on Tuesday was that there was a $500 million tax leakage in 2006, and that was multiplied by six to get the $3 billion. Because of that, my interpretation was that the future changes in

Finance committee  If you take everything into account that we have, we would show that from 2011, after the legislative tax changes and some of the other things that I spoke of earlier, we would get a very marginal tax leakage, in the order of $32 million a year. If you're just looking at the legi

Finance committee  There are a couple of points on that. As Mr. Dodge said in his testimony on looking at impacts, it's important to take into account the present value of things. That's what deferred taxation is. We feel the inclusion of deferred taxes is important because even though all of them

Finance committee  Yes. It was not my understanding that this was referenced in the documentation that I've seen from the Department of Finance. My understanding was that the estimate for 2006 was an ongoing tax impact of $600 million, with $100 million in one-time effects, the net impact for 200

Finance committee  Thank you, Mr. Chair. Good afternoon. Thank you for inviting me to appear before the committee today. It's a great honour. I'll be presenting evidence on tax leakage, and I'll submit it after my testimony today. I'm vice-president of the firm HDR|HLB Decision Economics. For t