Evidence of meeting #136 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.
A recording is available from Parliament.
March 1st, 2018 / 9:10 a.m.
Leah Anderson Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Yes, I'm Leah Anderson. I'm the Assistant Deputy Minister of the Financial Sector Policy Branch. I heard the first part of your question, but not the second. Which program you're--
9:10 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
You're requesting, for the financial sector policy funding, an increase of $1.3 million. Why the increase in funding, and can you give us the parameters of the overall program in terms of what the overall funding is and what it serves to do?
9:10 a.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Absolutely. At the financial sector policy branch, we advise the minister on financial sector policy issues. Since the crisis back in 2008-09, we've found an increasing workload over those years. Since that time, the branch has received temporary funding to do the work we need to do to oversee the financial sector and make sure it's stable, efficient, and competitive.
We've found over the course of the years, just given the increasing complexity of the financial sector, that our needs have grown rather than shrunk, so the temporary funding we've received since the crisis is essentially made more permanent by this new funding. That allows us to proactively assess and monitor financial sector developments, particularly on the stability side.
We're looking at vulnerabilities in the economy—particularly with respect to, for example, housing finance—and more broadly working with our international counterparts on strengthening international resolution regimes for financial institutions. If there were ever another crisis, we would then have effective ways to deal with systemically important financial institutions.
9:10 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
What is the overall funding if you include this increase for the financial sector policy?
9:10 a.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
I believe it's around $9 million.
9:10 a.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
We have 120 staff.
9:10 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Can you tell us the departments, agencies, and organizations that you liaise with, in brief?
9:10 a.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
We liaise with the Office of the Superintendent of Financial Institutions, Bank of Canada, Canada Deposit Insurance Corporation, Financial Consumer Agency of Canada, and the FINTRAC....
I don't know the actual....
9:15 a.m.
Liberal
9:15 a.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
I could try, but....
9:15 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Do you have any role, then, in estimating recoverables through the financial sector, given changes in tax policy?
9:15 a.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Sorry, do we...?
9:15 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Do you have any role in estimating returns, given changes in tax policy, with the financial sector?
9:15 a.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
That would be my colleague Miodrag's area.
9:15 a.m.
Miodrag Jovanovic Associate Assistant Deputy Minister, Tax Policy Branch, Department of Finance
So your question is with respect to the changes proposed with respect to financial institutions?
9:15 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I'm particularly thinking about the changes in tax policy. I'll just cut to the chase so you know what I'm looking for. It's the overall estimate in the budget in terms of recoverables. It goes to the financial sector but also beyond the financial sector. Budget 2018, it says on page 69, accounts for an “expected revenue impact of $354 million”.
I understand, of course, that we have CRA coming forward and that we'll be asking similar questions of them, but I'm interested in knowing whether, in terms of the financial sector policy, you have any role in terms of determining changes in tax policy and how that can actually increase revenue back to help serve to pay for, of course, the programs that Canadians need.
9:15 a.m.
Associate Assistant Deputy Minister, Tax Policy Branch, Department of Finance
So you are referring to the additional funding provided to the CRA to better enforce the tax regime and the portion coming from...?
9:15 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
It's also about the changes in tax policy and how that might impact financial institutions, and then how that might increase revenue to the federal government. It's just to see whether, within that program, there is any role there. I gather from your expression that there probably is not.
9:15 a.m.
Associate Assistant Deputy Minister, Tax Policy Branch, Department of Finance
I just wanted to make sure I properly understood your question.
There are different aspects here. We've made in this budget a few changes to the Income Tax Act to ensure that financial institutions, banks, pay their fair share. It's basically to ensure that some of the strategies they've undertaken to avoid taxes are closed. That will generate a substantial amount of money, maybe $2.5 billion over a five-year period. These are legislative changes to the Income Tax Act.
In parallel to that, there's also funding provided to the Canada Revenue Agency to better enforce the regime. This is getting at tax avoidance as well as tax evasion. That will affect different types of taxpayers. I mean, some may be in the financial sector, but I'm not sure we have a breakdown there.
I don't know if I've answered your question.
9:15 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Yes you have actually, thank you. I appreciate that. Am I up?
9:15 a.m.
Liberal
The Chair Liberal Wayne Easter
You're out. But if it's on the same thing and you want to finish it, go ahead.
9:15 a.m.
NDP