Evidence of meeting #57 for Finance in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was year.
A recording is available from Parliament.
4:50 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
Those items would not have been in the income tax annex of the budget, since they're not dealing with income tax measures, but they would have been referred to elsewhere in the budget.
4:50 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Just to follow up on Mr. McKay's question again, if we use an example in which you've ordered the windows—I like the windows example—and in your contract you say you want them installed as well.... So they have been produced, but you're not going to visit the manufacturer to make sure they were produced, and you're not going to pay for them, because in the contract it says “purchased and installed”. The business is not able to install them by January 31. How do we cover ourselves?
It's not to accuse, but let's clarify and see how we cover ourselves. Do you actually have to make a payment? This is where we're going to get into.... It's not just windows; there are going to be other major purchases in which there is going to be some fuzziness over the issue.
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
Sure.
It's for costs incurred in respect of materials acquired and services provided before January 31. To the extent that title in the property has transferred to you—in this case, the windows—and to the extent that you have to pay for those windows—they are your windows, they exist—then—
4:55 p.m.
Liberal
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
You have to incur a liability. If you have signed the contract and you have to pay for them and you have title to those windows—
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
That's why I'm asking. Normally you would order the windows but you would only pay for them once they are installed. If there is that four or five days, would you recommend that people actually pay for them and make sure that if they are not getting the windows installed—again I'm using windows as an example, but it could be the deck or whatever else—they should perhaps go back and see the supplier or the company or whoever's going to provide those services or that product and ask them to split the invoice.
Would that be...?
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
That would be a helpful thing. It would make it easier for filing a return. Yes, that's true.
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Quickly, how is the mechanism going to work? As taxpayers, are we going to be submitting the invoices, or is it going to be after we request the refund?
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
It would depend on whether you're filing electronically or not. If you're filing electronically, then like any other receipt that you're required to keep—say, for example, the—
4:55 p.m.
Liberal
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
If you're not filing electronically, you would file the receipts with your return.
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
And would they be returned, in case we needed them for guarantee?
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
I imagine that photocopies of the receipts would be fine.
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I have another question, but here's one more on the working income tax benefit, just to clarify what Minister Flaherty was saying. Can we file a tax return on January 1?
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
Yes, an individual can file a tax return at any time after the end of the taxation year. They're due, of course, on April 30, for most individuals.
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
My experience is that most of the forms are not available until February.
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
That's a different question, as to whether you can legally file a return and whether the form is available, printed or not. There may be electronic versions that you could use.
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Legally we can file, but practically it's probably very difficult to do so.
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
It depends on how early the forms get out.
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
In your experience, how early can the forms get out?
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
I've never filed my return before April 30, so I wouldn't know.
4:55 p.m.
Voices
Oh, oh!
4:55 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
All right, but I'm not asking you only. Maybe somebody else in the room has experience on how early.... As an accountant, I've never seen the forms earlier than--
4:55 p.m.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
I don't think we've brought anybody here from the Canada Revenue Agency, and they would be the ones who would have to respond to that question.