Evidence of meeting #89 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was changes.
A video is available from Parliament.
President, TSGI-Chartered Accountants
We as a firm have never had a problem with CRA on capital expenditures. I don't know where that came from.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Are you familiar with the task force and what their recommendations were and what their findings were?
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Didn't you see that they suggested the eligibility of capital was the most complicated part of it?
President, TSGI-Chartered Accountants
That was their opinion, but it is not in practice what we see.
President, TSGI-Chartered Accountants
We see claims of up to $100 million in expenditures.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
But it's fair to say that's what they came up with.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
Also, the cost effectiveness of the program is going to be improved through a number of actions. For instance, the SR and ED overhead expenditures will be reduced from 65% to 5% of the salaries and wages of employees.
That's correct. I see you nodding your head, Mr. Lavoie.
In fact the profit element will be removed for arm's-length third party contracts for the purpose of calculation of SR and ED tax credits. That's correct. You are nodding your head again, Mr. Lavoie.
Finally, the general SR and ED investment tax credit will be reduced to 15% from 20%. That's correct.
There are some measures that have been moved. In fact the predictability of the SR and ED program will also be enhanced with some things I don't have time to talk about today, but you're obviously familiar with some of those.
Wouldn't you suggest that the government is moving in the right direction on the initiatives that you're asking for?
Director of Policy, Manufacturing Competitiveness and Innovation, Canadian Manufacturers and Exporters
With regard to capital expenditure, we saw that in the report. I actually read about 45 submissions to the Jenkins panel and I didn't find one that said that the capital expenditure was too complex. I know finance has said that, but I have never heard it once among our membership.
Conservative
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
Mr. Aylward, in the provisions for the changes that are taking place to the pensions of your members, there's a part that talks about retroactivity. My concern here, and I'm wondering if you share that concern, is what that might actually entail for existing employees.
National Executive Vice-President, Public Service Alliance of Canada
That's a very good question, Mr. Marston. I have with me another witness who is a subject matter expert on pensions.
I would ask Mr. Infantino to answer that question specifically, Mr. Chair.
November 6th, 2012 / 4:40 p.m.
Conservative
James Infantino Pensions and Disability Insurance Officer, Public Service Alliance of Canada
Thank you for that question, Mr. Marston. I think what you actually were referring to was part of the provisions regarding the establishment of a two-tier arrangement.
Pensions and Disability Insurance Officer, Public Service Alliance of Canada
There will be two groups of employees, one group of existing employees who will remain under the terms of the plan as they exist now and then a new group of employees who will continue on a go-forward basis with new eligibility requirements for pensions. I believe that's what you're speaking to in terms of retroactivity and how that will apply.
Pensions and Disability Insurance Officer, Public Service Alliance of Canada
That's my understanding of the language in the legislation under this particular part of Bill C-45.
NDP
Wayne Marston NDP Hamilton East—Stoney Creek, ON
The concern of the official opposition is the impact that will have on young people, because they are facing two-tier pensions. It won't be long before they're facing two-tier wages, I would suspect, sir.
