No.
Evidence of meeting #26 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was region.
A recording is available from Parliament.
Evidence of meeting #26 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was region.
A recording is available from Parliament.
4:40 p.m.
Some hon. members
No.
4:40 p.m.
Conservative
4:40 p.m.
Some hon. members
No.
4:40 p.m.
Conservative
The Chair Conservative Rob Merrifield
Just so that everyone in the committee is clear, if we say yes to this.... I'll just have our clerk explain this.
Would you please explain to the committee exactly what they're voting on?
4:40 p.m.
Michael MacPherson Procedural Clerk
If the committee does not report the bill back, it will be deemed reported back without amendment.
You've actually amended the bill today by deleting the clauses, so you will have to report back. You are reporting to the Chamber the work you've done today.
4:40 p.m.
Some hon. members
Agreed.
4:40 p.m.
Conservative
The Chair Conservative Rob Merrifield
Shall the committee order the reprint of the bill? It doesn't matter.
Fair enough. That's it.
With that, we will suspend as we bring our next witnesses forward.
4:45 p.m.
Conservative
The Chair Conservative Rob Merrifield
Okay, we'll call the meeting back to order.
We want to thank the Canada Revenue Agency for being here today.
Pursuant to Standing Order 81(5), supplementary estimates (B), for the fiscal year ending March 31, 2008, we want to look at these. They were referred to the committee on Thursday, February 14.
We are pleased you're here. We have James Ralston and Filipe Dinis. Good to have you here. The floor is yours, if you'd proceed with your presentation.
4:45 p.m.
James Ralston Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Thank you, Mr. Chairman.
The CRA welcomes the opportunity to appear before this committee once again, this time in consideration of supplementary estimates (B) for 2007-2008.
For the CRA, supplementary estimates (B) comprise a number of separate adjustments to the agency's spending authorities totalling $439.9 million. The largest single adjustment represents a forecasted net amount of $437 million, resulting from disbursements to the provinces under the Softwood Lumber Act.
Another significant funding increase identified in these estimates is an amount of $21.5 million relating to the CRA's assumption of responsibility for the corporate tax administration for Ontario.
These estimates are also reflecting $22.1 million in funding, which will be used to offset the new approvals identified in these estimates. This funding was previously approved for the offshore trusts and foreign entities initiative, for which the enacting legislation has been delayed and is not expected to be passed by Parliament this fiscal year.
Additional adjustments identified in these estimates are $3 million for payments made under the Energy Costs Assistance Measures Act and $550,000 for an advertising campaign to promote the availability of electronic tax services for businesses.
Lastly, I would like to identify that these estimates are reflecting a transfer of $100,000 to the CRA from Western Economic Diversification, for costs related to the support of the minister's regional office in Saskatchewan from April through August 2007, and an amount of $200,000 transferred from the CRA to the Public Service Human Resource Management Agency in support of the national managers' community initiative.
The total increase of the adjustments identified in these estimates is $439.9 million, which represents an increase of 11.4% in the authorities granted to date. With the inclusion of supplementary estimates (B), the agency's authorities will amount to $4.299 billion.
At this point, I'd be most happy to respond to any questions.
4:45 p.m.
Conservative
The Chair Conservative Rob Merrifield
Thank you very much.
We'll start the questioning with Mr. Pacetti. The floor is yours.
4:45 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Thank you, Mr. Chairman.
Thank you to the witnesses for appearing.
I'm trying to understand why CRA is responsible for paying out the $437 million for the softwood lumber agreement or act.
4:50 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
In contrast to some of the other arrangements we have--for example, provincial income taxes--where the collections are made by the agency but the payments are made by the Department of Finance, in this case the legislation allowed for the agency to also make the payments. The money represents the proceeds of a charge on exports of softwood lumber. Once received by the agency, the proceeds are shared with the provinces, minus a certain amount for administration.
4:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
So you were the original assessor of these amounts, correct? Is that what you're saying?
4:50 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
That's correct.
4:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Through the Softwood Lumber Act, or would it be through an excise tax?
4:50 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
No, the Softwood Lumber Act.
4:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
And they would have been charged to exporters of lumber?
4:50 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Right, in the designated regions of Canada.
4:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay. The same question would be for your next paragraph, where you're requesting an amount of $21.5 million. Again, why would you be paying that to the tax administration of Ontario?
4:50 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
That's a different kind of item. In the case of the $437 million, we are passing on these revenues to the provinces. In the case of the corporate tax administration, these are expenses the agency needed to allow us to ready ourselves to take on those responsibilities.
4:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Why are you paying the tax administration of Ontario?
4:50 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Effective for tax years after 2008, the Ontario corporate tax will be collected by the agency. These are our costs of developing systems, staffing, and that sort of thing to give the agency itself the capacity to do this work.
4:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay, so you're asking the treasury for $21.5 million to cover the costs?
4:50 p.m.
Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Right.