Evidence of meeting #7 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was gst.
5:30 p.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
My second question has to do with banks and insurance companies. Banks and insurance companies don't charge GST, yet they have some expenses on which they pay 7%. Now they'll be paying 6%. I take it, therefore, that there is effectively a windfall on the expense side of the ledger to banks and insurance companies.
5:30 p.m.
Chief, Sales Tax Division / Tax Policy Branch / Legislation Policy, Department of Finance
Well, yes, they will benefit because they're taxed and they cannot.... Many of their supplies are exempt. When you have exempt supplies, you cannot recover the tax you paid on the purchase.
5:30 p.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
I understand, but it is a substantial windfall for both banks and insurance companies.
5:30 p.m.
Chief, Sales Tax Division / Tax Policy Branch / Legislation Policy, Department of Finance
The 1% of the--
5:30 p.m.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Finally, the minister said none of the moneys that would be paid to Ontario would be by way of tax credits pursuant to the Canada-Ontario agreement. Can you confirm that?
Well, we don't need to all look around at each other.
5:30 p.m.
General Director, Tax Policy Branch, Department of Finance
Unfortunately, the people who would be able to answer this question, the people who are involved in the negotiations with Ontario, are not here. Sorry about that.
5:35 p.m.
Conservative
The Chair Conservative Brian Pallister
Thank you very much to our panellists this afternoon.
Thank you, committee members, for your cooperation. I would remind committee members that we are hearing witnesses tomorrow on the bill and we'll move to clause-by-clause deliberation on Thursday at 10 in the morning. If committee members wish to bring forward amendments, I would strongly encourage members to have those in tomorrow by 6 o'clock to facilitate the preparation of our agenda for Thursday.
The meeting is adjourned.