Finance Committee on April 29th, 2019

[The Chair, Liberal, Wayne Easter]

I've come down on your side in terms of continuing the questioning, but I don't think you can expect the tax experts to answer some of these questions. There is a series of questions here that I can see need to be asked of the minister, who is representative of the cabinet and the decisions that they obviously have to make in the appointment of this body.

I agree with you that we need further clarification on the advisory committee and how it will be appointed, but I really don't think we've been fair to officials who are really here to deal tax measures, to ask them to answer questions that the political side really needs to answer. I'm not taking sides here. I think some answers need to be found, but I don't want to be unfair to our witnesses who are here to deal with the tax measures.

[Pierre Poilievre, Conservative, Carleton, ON]

I'm going to keep my questions on the tax measures.

With respect to the tax measures.... I'm referring to the measure right in the bill. It is paragraph 43(2)(b). It says here that to be considered a qualifying journalism organization you must be designated “by a body prescribed for the purpose of this definition.

Who would prescribe that body?

[Trevor McGowan]

I'm trying to think of a different way of saying this. It would be like any other income tax—

[Pierre Poilievre, Conservative, Carleton, ON]

That wasn't my question though. It was, who will designate it? Who will prescribe it?

[Trevor McGowan]

Ultimately, the government will.

[Pierre Poilievre, Conservative, Carleton, ON]

Thanks, Wayne. We're getting right to it.

Who in the government? Is it the cabinet?

[Maude Lavoie]

It would be either the government or the cabinet, depending on the process. It could be Parliament, as well.

[Pierre Poilievre, Conservative, Carleton, ON]

It's the cabinet. There we have it. Now we know how this is going to work.

The cabinet is going to set up a body that will decide who is a qualifying journalism organization.

[Trevor McGowan]

You mention setting up a body. There is no requirement in here that it be something created for the purposes of this. Rather, there is a requirement that it be designated.

[Pierre Poilievre, Conservative, Carleton, ON]

Differently worded then, the cabinet will designate a body that will decide which news outlet is and which news outlet is not a qualifying journalism organization.

[Maude Lavoie]

Perhaps the one thing I would like to add to this conversation is that—

[Pierre Poilievre, Conservative, Carleton, ON]

Is that the case?

[Maude Lavoie]

They will look at the definition that will be in the act—in legislation—and look at a specific application from an organization and make sure they meet the requirements that are set out in the act. Parliament would have decided on the criteria and on the definition of a qualifying organization. That definition may be changed following advice from an independent body on what the designations are. Then the body will assess or attest that an organization meets requirements that are set out in an act.

[Pierre Poilievre, Conservative, Carleton, ON]

I wasn't asking any of that. I was asking who will designate that body.

[Maude Lavoie]

At this point we don't know. It could be Parliament, it could be cabinet. It will depend on the process, and that process has not been announced.

[Pierre Poilievre, Conservative, Carleton, ON]

It couldn't be Parliament because there is nothing in the act that would prescribe for Parliament to create such a body.

There are agents of Parliament; they do exist, but they are defined in legislation. There is no such definition here, so it's clear it's not Parliament.

[Maude Lavoie]

Sometimes regulations are approved. Some are approved now through the BIA process. It will depend ultimately on—

[Pierre Poilievre, Conservative, Carleton, ON]

When is this going to be set up then? When will this credit begin to be available?

[Trevor McGowan]

The labour tax credit is available as of the beginning of 2019, essentially. The other two are available as of the start of 2020. The idea is that the advisory panel has not been constituted nor has the body been designated. The idea is that designation could be retroactive to the start of the relevant time period.

[Pierre Poilievre, Conservative, Carleton, ON]

The labour tax credit component of this would only be available to qualifying journalism organizations, right?

[Trevor McGowan]

That's correct.

[Pierre Poilievre, Conservative, Carleton, ON]

So the tax credit is effectively already in place for qualifying journalism organizations.

[Trevor McGowan]

That's what the bill provides.

[Pierre Poilievre, Conservative, Carleton, ON]

Yes, according to the bill.

When would organizations that qualify have to file to receive the tax credit for 2019?

[Trevor McGowan]

The credit applies with respect to salary or wages paid and to work done now. As of January 2019, the filing deadline would depend on their year-end for corporations or taxpayers.