Evidence of meeting #42 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was measure.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Clerk of the Committee  Mr. Alexandre Roger
Trevor McGowan  Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Pierre Leblanc  Director General, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Maude Lavoie  Director General, Business Income Tax Division, Tax Policy Branch, Department of Finance
Dave Beaulne  Senior Director, Legislation, Tax Legislation Division, Tax Policy Branch, Department of Finance

5:15 p.m.

Conservative

Ed Fast Conservative Abbotsford, BC

It is a matter for the minister—you are right, Mr. Chair—but we're asking questions about the specifics of the program design. Does the program design incorporate the flexibility that will help these companies within the tourism industry? My guess is that they won't be helped by this program, like so many other programs where they have fallen through the cracks, and they're likely going to come to committee and tell you that.

5:15 p.m.

Liberal

The Chair Liberal Wayne Easter

I'll go to Ms. Jansen. I don't think Ms. Lavoie can answer that one.

Next is Ms. Jansen and then Mr. Fragiskatos.

Go ahead, Ms. Jansen.

5:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

I know in my discussion with them, they were pretty sure that it wouldn't work for them because of the fact that they will not be opening, because a one-vaccination summer will not open their industry.

What they said was that the winding down of the wage subsidy is also disturbing to them because of the fact that they have kept a few people on, but they need to be able to keep those people on for a longer time than what the program is now looking like it's going to be going for.

Have you had any discussion of how you can help those industries that will not be able to open because we're not getting vaccinated fully fast enough? Have you looked at all at how you can help them with a wage subsidy that would continue for them?

5:15 p.m.

Director General, Business Income Tax Division, Tax Policy Branch, Department of Finance

Maude Lavoie

It's hard for me to discuss all the conversations that have happened between the government and an industry in particular. What I could say is that the wage subsidy.... Yes, it's true. There is a decline in the rate that's being contemplated until September when the subsidy would end.

I think one thing to note is that, if the situation doesn't unfold as is currently expected, and if the pandemic situation is still at play, the government has kept the flexibility to add periods to the wage subsidy program until the end of November. Adding two additional periods is a possibility, and that could be done by regulation as per the bill that we're looking at. They also have the flexibility to play with the the top rate if the situation warrants it.

5:15 p.m.

Liberal

The Chair Liberal Wayne Easter

Thank you.

Peter Fragiskatos.

5:15 p.m.

Liberal

Peter Fragiskatos Liberal London North Centre, ON

Thank you, Chair.

It's interesting to hear this feedback on the budget and this specific provision of it. I was also quite intrigued to hear in the previous meeting that our Conservative colleagues would have been very anxious to pull away emergency COVID-19 supports. I thought that was a stunning moment in the previous meeting, but I won't dwell on that, Mr. Chair.

Just to put my Conservative colleagues at ease, the information is available online. Media has covered extensively the number of businesses, the number of individuals, the number of families that have received and benefited from COVID-19 support. If they want further support, the government will be there.

Members and people can ask questions, but I just raise that last point to assure my colleagues.

5:15 p.m.

Liberal

The Chair Liberal Wayne Easter

Okay. I don't think there's a question there.

Julie Dzerowicz.

5:15 p.m.

Liberal

Julie Dzerowicz Liberal Davenport, ON

Thank you so much, Mr. Chair.

I think Ms. Lavoie actually answered my question. I was going to ask whether it could be extended past November, but if I heard you correctly, Ms. Lavoie, it can be by regulation.... Oh, it cannot.

5:20 p.m.

Director General, Business Income Tax Division, Tax Policy Branch, Department of Finance

Maude Lavoie

No. I was talking about the wage subsidy. The hiring program is scheduled to end by the end of November, unless I'm mistaken. Perhaps Trevor can correct me if I'm wrong, but I don't think this one can be extended.

5:20 p.m.

Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance

Trevor McGowan

You're absolutely correct. It cannot extend past the end of November without a legislative change, based upon this bill.

5:20 p.m.

Liberal

The Chair Liberal Wayne Easter

To be absolutely sure we're all on the same wavelength, the level of subsidy or level of support can be changed by regulation by executive council. Is that right?

5:20 p.m.

Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance

Trevor McGowan

That is correct, for the period up to the end of November.

5:20 p.m.

Liberal

The Chair Liberal Wayne Easter

Thank you.

Ms. Jansen, are you back on?

5:20 p.m.

Liberal

Julie Dzerowicz Liberal Davenport, ON

Hold on, Mr. Chair. I do have a follow-up question.

5:20 p.m.

Liberal

The Chair Liberal Wayne Easter

I'm sorry, Ms. Dzerowicz.

5:20 p.m.

Liberal

Julie Dzerowicz Liberal Davenport, ON

Ms. Lavoie, I know there's been a little bit of a focus by my opposition colleagues on the tourism industry. If I understood you correctly, this is for all companies including non-profits that meet certain criteria. I think those criteria would include having fallen below a certain revenue income. I wanted to make sure that was clear. If you could respond to that, it would be great.

5:20 p.m.

Director General, Business Income Tax Division, Tax Policy Branch, Department of Finance

Maude Lavoie

That's correct. To qualify for the hiring program in the first period, they need to demonstrate that they have had some revenue decline compared with that for the same period last year. Starting with the second period, they have to demonstrate that they have had an at least 10% revenue decline. Otherwise, all industries are eligible.

5:20 p.m.

Liberal

Julie Dzerowicz Liberal Davenport, ON

Thank you so much.

Mr. Chair, for the record, we should clarify. I think I need to send an article to Ms. Jansen, who indicated that we are not vaccinating fast enough. The Star has said that we're surpassing the U.S. today in terms of vaccinating more people than usual—

5:20 p.m.

Liberal

The Chair Liberal Wayne Easter

We are on part 1 of the BIA.

5:20 p.m.

Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

How many doses is that, Julie?

5:20 p.m.

Liberal

Julie Dzerowicz Liberal Davenport, ON

I'm hoping we'll finish it.

5:20 p.m.

Conservative

Ed Fast Conservative Abbotsford, BC

The Star...?

5:20 p.m.

Liberal

The Chair Liberal Wayne Easter

We're on part 1 of the BIA, folks.

For a point of clarity, Ms. Lavoie, you can use revenue over revenue of 2021 over 2020 or 2019. Is that correct?

May 13th, 2021 / 5:20 p.m.

Director General, Business Income Tax Division, Tax Policy Branch, Department of Finance

Maude Lavoie

No, you have to compare it with the pre-pandemic period. You have to compare it to 2019, depending on which months we're talking about. That's the first approach, or you can also compare it to the average of January and February of 2020. You can use either approach.

5:20 p.m.

Liberal

The Chair Liberal Wayne Easter

Okay. That clears my mind.

Ms. Jansen.