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.
Conservative
Daryl Kramp Conservative Prince Edward—Hastings, ON
That's correct, for the first-time homebuyers' tax credit, for the $750 one.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
Right. The base of that tax credit is not applied to professional fees or permits, or any other kinds of fees that you might have. If you have bought your first home, you get a tax credit of $750.
Conservative
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
That's correct.
Conservative
Daryl Kramp Conservative Prince Edward—Hastings, ON
From the point of the actual tax credit of $5,000, there are no terms, no strings, no conditions? It's just, there it is.
Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
Yes. The tax credit amount, as it's referred to, is $5,000. It's the amount that shows up in your tax form, because there are a number of other credits also applicable at the 15% rate. You add up that amount and at the end you multiply the whole thing by 15%. That's why I mentioned $750 being 15% of $5,000.
Conservative
Daryl Kramp Conservative Prince Edward—Hastings, ON
So, in essence, it has to be very, very simple for a first-time homebuyer, instead of some of these complexities where you have to dot every “i” and cross the “t” and you never know what you're going to get back at the end of it. It's straightforward and simple.
Thank you.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Just quickly, Mr. Forbes, the question Mr. McKay asked you on the work cessation test, is that also similar to what's in place right now with Quebec, with the QPP?
General Director, Federal-Provincial Relations and Social Policy, Department of Finance
I don't know, actually. It's a good question.
Apparently yes, they tell us.
Liberal
The Vice-Chair Liberal Massimo Pacetti
There's an amount in Quebec. I think it's $6,000 or $8,000. So is it going to be different now between the CPP and the QPP?
Acting Senior Assistant Deputy Minister, Income Security and Social Development, Department of Human Resources and Social Development Canada
What amount are you referring to, sir?
Liberal
The Vice-Chair Liberal Massimo Pacetti
There's a work amount. There's a number in Quebec that if you're earning $6,000, $8,000, or $12,000, you cannot qualify between the ages of 60 and 65 to get the QPP.
General Director, Federal-Provincial Relations and Social Policy, Department of Finance
I'm told that Quebec may not completely eliminate their work cessation test. They may go partway. They had one like ours. We can provide more details if you'd like, but they're not completely harmonizing with us.
Liberal
The Vice-Chair Liberal Massimo Pacetti
So for the CPP, you're going to go all the way done to zero, so there's not going to be any--
General Director, Federal-Provincial Relations and Social Policy, Department of Finance
The work cessation test will be on, yes.
Acting Senior Assistant Deputy Minister, Income Security and Social Development, Department of Human Resources and Social Development Canada
Presently you have to have low earnings for a period of two months or no work at all.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Okay, it's not a yearly amount. So what are low earnings for two months, more or less?
General Director, Federal-Provincial Relations and Social Policy, Department of Finance
It's $950 a month. So you would have to bring your earnings down to $950 per month for two months, or to zero.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Okay, great.
One last question on the Financial Administration Act. I know you're putting into the bill that crown corporations and federal entities and departments are going to have to make public within sixty days after the end of the fiscal quarter.... Where does that come from? Don't we have that condition presently?
Bill Matthews Acting Assistant Comptroller General, Financial Management and Analysis Sector, Treasury Board Secretariat
Hello. My name is Bill Matthews. I am with the Office of the Controller General.
Sir, I couldn't quite hear your question.
Liberal
The Vice-Chair Liberal Massimo Pacetti
The amendment to the Financial Administration Act is requiring that specified federal departments as well as parent crown corporations and other federal entities are to prepare and to make public within sixty days after the end of the fiscal quarter a quarterly financial report. Is that not a requirement today?
Acting Assistant Comptroller General, Financial Management and Analysis Sector, Treasury Board Secretariat
No. If you look at the reporting framework we have federally, it starts with the budget, and then to wrap up the year we do the public accounts on an annual basis. From an interim perspective, the Department of Finance produces the fiscal monitor on a monthly basis. But that's a whole of government level. The issue here is this is the way to report back to Parliament, on a departmental level, on how departments are doing with their appropriations in terms of what Parliament authorized. So it's a new requirement to do quarterly reporting for each of the first three quarters of the year. We're not requiring it for the fourth quarter because there already is substantial year-end reporting by departments and crown corporations.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Is that going to require more resources, or is it already built into the system that you'll be able to provide it?
Acting Assistant Comptroller General, Financial Management and Analysis Sector, Treasury Board Secretariat
We have put a delay on it--it goes into effect in April 2011--to give them some time. But in terms of reporting, it's largely to be based on reporting they would be doing anyway for their own management. So there are some resources required, but it's not enough to require an ask of resources. But there are certainly some resources in the department.