Chair, how much time do I have?
Evidence of meeting #6 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was account.
A video is available from Parliament.
Evidence of meeting #6 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was account.
A video is available from Parliament.
4:30 p.m.
Conservative
4:30 p.m.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Okay.
We've skipped from part 1 to part 2. Are we into part 3 at this point?
4:30 p.m.
Conservative
4:30 p.m.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
I don't have any further questions, Chair, unless you have something you wanted to ask.
4:30 p.m.
Conservative
4:30 p.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Thank you.
I have a question on the GST and HST on paid parking. I understand that the purpose here was to end the tax dispute between the federal government and 10 municipalities on whether the federal government was owed GST on revenue from municipal parking meters. I was wondering if you could first give a bit of background. In particular, which municipalities were involved in this appeal before the Tax Court, and how much revenue was at stake in this appeal?
4:30 p.m.
Senior Legislative Chief, GST Legislation, Department of Finance
I don't have the list with me of all the municipalities involved, but it's available by consulting the files of the Tax Court. I believe there were more than 10.
4:30 p.m.
Liberal
4:30 p.m.
Senior Legislative Chief, GST Legislation, Department of Finance
Yes, there was a dispute, but the federal government is not conceding that the taxpayer would have won. This tax dispute has been going on for a very long time, and it seems to never proceed in the courts. I think from the numbers available from the Tax Court you can find something between $50 million and $60 million.
4:30 p.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Okay. From what you just told me, do you expect that if this measure does not pass, the municipalities would then resume their appeal at the Tax Court in an attempt to keep more of their parking revenues?
4:30 p.m.
Senior Legislative Chief, GST Legislation, Department of Finance
If the amendment doesn't go forward, basically they will try their appeal and it will be the Tax Court that has to decide.
4:30 p.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Okay.
Budget 2013 included the same provision with respect to GST on paid parking that would have applied to charities, but the measure for charities has not been introduced in legislation. What feedback did you get from charities about this measure in budget 2013?
4:30 p.m.
Senior Legislative Chief, GST Legislation, Department of Finance
Mainly the hospital community made comments because they would have been negatively affected. Basically, the reason the government has not included the amendment in this bill is that the government continues to consult with all those affected by this technical measure and its intent.
4:30 p.m.
Liberal
4:30 p.m.
Senior Legislative Chief, GST Legislation, Department of Finance
It's for the Minister of Finance to make an announcement, not for me.
4:35 p.m.
Conservative
The Chair Conservative James Rajotte
Thank you very much, Mr. Hsu.
I want to thank our officials. I assume the four of you will be staying here, but we will now be moving to part 3.
I will go division by division to make it easier for you. I would ask us all to be as brief and succinct with our questions as possible. We will call those officials for part 3, division 1, dealing with the Employment Insurance Act, the EI hiring credit, the EI premium rate ,and EI fishing regulations.
I'd like to welcome our officials here. I understand we have officials from CRA, from Human Resources, and from Finance. I understand that one of you has a brief overview of this division. Is that correct? We will ask you for a brief overview, and then we'll have questions from members.
Ms. Ryan.
4:35 p.m.
Annette Ryan Director General, Employment Insurance Policy, Skills and Employment Branch, Department of Human Resources and Skills Development
We have three items, Mr. Chair, the EI premium changes, the hiring credit update, and the changes to fishing regulations. I know you want an overview of the fishing issue and we're prepared for all three.
4:35 p.m.
Director General, Employment Insurance Policy, Skills and Employment Branch, Department of Human Resources and Skills Development
Mike Duffy will cover the EI premiums, which is first up in the legislation. Ray Cuthbert from CRA will cover the hiring credit, and I'll cover the fishing regulations.
4:35 p.m.
Conservative
November 18th, 2013 / 4:35 p.m.
Michael Duffy Director, Legislative Policy Analysis, Employment Insurance Policy, Skills and Employment Branch, Department of Human Resources and Skills Development
Thank you, Mr. Chair.
Division 1 will amend the Employment Insurance Act to set the rate for employment insurance premium rates for 2015 and 2016 at $1.88 for every $100 of insurable earnings. That's effectively the freeze announced by the government on September 9, 2013. It will also establish that the premium rate for 2017 and onward will be set based on a seven-year break-even rate mechanism. It will repeal the Canada Employment Insurance Financing Board Act and related provisions to that act, and the permanent dissolution of the CEIFB. It will also put in place a mechanism to ensure that for 2017 and beyond, the EI premium rate will be set by the Employment Insurance Commission.
4:35 p.m.
Conservative
4:35 p.m.
Ray Cuthbert Director, CPP/EI Rulings Division, Legislative Policy Directorate, Canada Revenue Agency
My name is Ray Cuthbert. I'm the director of the Canada pension plan and employment insurance rulings division in the legislative policy directorate of the Canada Revenue Agency.
I'm here to talk about the hiring credit for small business. It's essentially a similar credit as in the prior two budgets, with the exception that the base year's ceiling has increased from $10,000 to $15,000.
How does it work? Employers who had employer EI premiums in 2012 of $15,000 and who have had an increase in 2013 are entitled to a credit. The credit is calculated as the difference between the two years. It must be greater than $2, but not exceeding $1,000. It's calculated automatically by the Canada Revenue Agency when the employer's 2013 T4 information return is processed.