Evidence of meeting #59 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was change.
A recording is available from Parliament.
Liberal
Scott Brison Liberal Kings—Hants, NS
But our calculation is that based on the way you're approaching it and the way anyone else would be paying taxes for the same aggregate or macro number, it would be about $30,000 a year, or a tax advantage in his favour, in this case.
Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Sorry, I don't know how you've come up with your calculation. I'm assuming that you're suggesting it would be taxed as the first dollars.
Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
He has that income. He has other sources of income. This is his personal situation, and not that I know all the details, but it's our understanding he has sources of income such that those are already taxed, and therefore this will be added on top of that.
Liberal
Scott Brison Liberal Kings—Hants, NS
I want to make it clear this is not a slight against the Governor General, who's a fine fellow. It's just a question of understanding the methodology.
On a question to CRA related to the issue of shelters for taxation, have you ever informed the government of examples of money laundering within the Canadian environmental community?
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
Not that I'm aware of....
Liberal
Scott Brison Liberal Kings—Hants, NS
Okay. In terms of political advocacy—and this is where, as legislators, we're trying to understand the issue—it's quite a subjective decision or evaluation to try to determine what is political advocacy and what isn't.
For example, I was just on your CRA website, and there's an organization called the Manning Foundation for Democratic Education. If an organization that had a tax number spent more than 10% of its resources, for instance, on training partisans on various electoral and political strategies and electioneering strategies and on policy development around partisan activities—
Liberal
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
Again, not making any specific reference to any specific charity, any kind of partisan activity is unacceptable at any level.
Liberal
Scott Brison Liberal Kings—Hants, NS
Would training of political organizers be considered a political activity?
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
If the political activity is partisan and the training is to allow for partisan political activity, then I think there would be a connecting factor there.
Conservative
The Chair Conservative James Rajotte
Thank you.
We can come back to you, Mr. Brison, but we're over time.
I have Ms. Nash, please.
NDP
Peggy Nash NDP Parkdale—High Park, ON
Yes, thanks.
I would just like to get a clarification in terms of foreign donees. Can you describe or clarify for me what qualifies as a humanitarian emergency? There are often donation requests based on humanitarian emergencies. What's the definition? Is it a United Nations definition? What qualifies?
Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Again, as Mr. Kirk mentioned earlier, the CRA would provide guidance on what that means. The situation we are contemplating is the earthquake that happened in Christ Church, New Zealand, where you have agencies on the ground that are involved in humanitarian disaster relief or something to that effect—that kind of entity, essentially, where Canadians felt that they really wanted to give to organizations like that, and that they were involved in that kind of activity.
NDP
Peggy Nash NDP Parkdale—High Park, ON
So there's New Zealand, Haiti, and we can think of Japan; there are examples we can think of.
Is there a normal definition, or how is the decision made to make that determination? Is it media coverage? What would separate one from another? We don't classify what's going on in the DRC as a humanitarian emergency for charitable donations, but I'm not sure what the definition is. What do you go by at CRA?
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
As Sean was saying, assuming the measure is actually passed, then part of the process is to provide some guidance on exactly what we would consider to be humanitarian. I think it's certainly likely to be very consistent with what Sean was saying.
But there's a distinction between understanding what humanitarian assistance is and the actual charitable registration process. In a number of instances we have found that Canadians give through existing international organizations, such as the Red Cross and others, and often find that this is the most immediate way to provide relief. This is a measure in which there are some particular....
For example, in this case, New Zealand, with the government, wanted to initiate a process to establish some separate identification. That's why we went through that process. A lot of giving takes place through existing international aid organizations, which are often seen to be quicker, with infrastructure in place. That would not change.
NDP
Peggy Nash NDP Parkdale—High Park, ON
That would be consistent with what I said earlier, that CARE Canada and Vision Canada would be two of the biggest recipients of foreign donations.
Am I correct in understanding that this is something for which CRA will be coming up with a definition? Will you be establishing criteria, if these changes are adopted, so that there's a kind of test or set of criteria for considering something to be a humanitarian emergency?
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
We would traditionally certainly provide some examples and some clarity around what we would see as typical humanitarian situations, and we would look to other sources and definitions to inform...and also develop that, frankly, in consultation with the sector and with the Department of Finance and others.
NDP
Peggy Nash NDP Parkdale—High Park, ON
If I understand you, there are no fixed criteria that you'll be establishing; it sounds as if it's a little more fluid. I'm just curious to know who will make the ultimate decision. Is it the minister, or how does that work?
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
As the bill suggests, when I was saying “fluid”, it's just that, given that I haven't written them yet, I don't want to say what they are. I'm just saying that we will go through a process to provide as much clarity and definition as is helpful and useful and necessary in order for charities to know what the rules are.
NDP
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
Yes. The process of coming to an understanding of whether or not a particular charity meets the definition again would be undertaken within the CRA.
NDP
Peggy Nash NDP Parkdale—High Park, ON
Will defining what constitutes “national interest” take a similar course?
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
Yes.