Finance committee  The extension of five years to ten years was certainly welcome. What it means is we're still taxed in those ten years. So my RRSP is taxed this year for any income after March 31, I believe, and on through the end of this year. The transition period is extended, but it still has

Finance committee  No, I would believe that the finance department would agree with that. This corporate status is natural. It happens elsewhere.

Finance committee  Right. We've tried hard to understand what the abuses could be. I think I've wrapped my head around it just today what they could be. I think it's having a MIC invest in something that's not a mortgage, but finding a vehicle of profits to get them into their RRSP, which really I

Finance committee  That's right. It could be in deposits or maybe even stocks and bonds, although the Canadian Securities Commission has put out a national instrument. I don't know the number, but I can get it for you. The Alberta Securities Commission is not allowing us to invest in anything other

Finance committee  MICs have a 35-year history of doing this. We are a creation of government. That part is operating the way it should. It is RRSP-eligible.

Finance committee  I don't see any mischief going on, though. The profits, just like any other company, are being flowed through to the investors, as originally intended by the act. If the government is worried about the tax leakage on that, we should sit down with the department.

Finance committee  I apologize. I'm not sure I understand how people are using their RRSPs as they are not intended. To me, the way our MIC operates, we're very much using it within the confines of the Income Tax Act. We're not investing anything we should not be. We'd be happy to open up that ques

Finance committee  Not at all. Do you mean how we invest?

Finance committee  I buy shares in my corporation. I either buy them directly, outside of my RRSP, or I invest the money in my RRSP, and the RRSP then buys the MIC shares. I can invest in my own MIC either way. Typically, I would say maybe half of our share certificates are in RRSPs versus non-RRSP

Finance committee  Sorry, which part?

Finance committee  I can either own shares of the MIC directly, or they are owned through my RRSP. I could buy Suncor shares in my RRSP or outside my RRSP. It happens either way.

Finance committee  Yes, that's absolutely correct. MICs were intended to be a flow-though from their creation.

Finance committee  I think I understand, but it was absolutely the intention of the legislation. We're defined under section 130.1 of the Income Tax Act, and when we were legislated in--in 1972, I believe--we were RRSP-eligible at that very point. It was a way to encourage investment into this sect

Finance committee  The proposal I would make is simply to target what I understand the abuses to be. I think there's some concern that companies, MICs, were investing in companies that weren't at arm's length to the managers or the major owners, so they were perhaps benefiting by finding a way to g

Finance committee  The amendment I'm suggesting?