Evidence of meeting #51 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agreed.
A video is available from Parliament.
6:40 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 92 carry?
(Clause 92 agreed to on division)
Gabriel, you had a question on that one.
6:40 p.m.
Bloc
Gabriel Ste-Marie Bloc Joliette, QC
Does the Minister have the power to make regulations to change the rates, percentages and amounts of the benefits?
6:40 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
The rates for furloughed employees are currently set out in the regulations. Many of the other rates can actually be changed by regulation as well. The base wage subsidy rate and the rent subsidy base rate can be changed by regulation as well, but this one relates to furloughed employees, and the rate is currently set out in the regulations.
6:40 p.m.
Liberal
6:40 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 93 relates to the enhanced capital cost allowance, or accelerated investment incentive deductions, available for zero-emission vehicles and the expansion of the types of vehicles that qualify.
As we discussed earlier, the capital cost allowance system is based on a number of capital cost allowance classes. Different types of assets are put in different classes, and each class has its own capital cost allowance deduction rate. This measure introduces a new capital cost allowance class, class 56, in respect to these new zero-emission vehicles.
6:40 p.m.
Conservative
Pat Kelly Conservative Calgary Rocky Ridge, AB
I don't have a question. I'm content to let it go on division, but I didn't hear you call clause 92. Did you call clause 92 before Gabriel?
6:40 p.m.
Liberal
The Chair Liberal Wayne Easter
It's not a problem. Good job; you're watching.
Shall clause 93 carry on division?
(Clause 93 agreed to on division)
(On clause 94)
6:40 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
These amendments are consequential on the amendments to the registered disability savings plan.
I don't know if somebody else was planning to come to speak to Canada disability savings regulations.
6:40 p.m.
Liberal
The Chair Liberal Wayne Easter
Is there anybody in the room who can give a signal to the clerk on the Canada disability savings regulations? We're on page 121 of the bill.
6:40 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
If not, I think we could probably speak to them. My colleague Lesley Taylor is in the lobby. She is one of our policy leads on the registered disability savings plans.
6:40 p.m.
Liberal
The Chair Liberal Wayne Easter
Go ahead, Ms. Taylor. We're on Canada disability savings regulation, clause 94.
May 27th, 2021 / 6:40 p.m.
Lesley Taylor Senior Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
To clarify, these regulations are the purview of Employment and Social Development Canada. They were drafted by that department. I work with Trevor in the tax policy branch at the Department of Finance. I'll note that as we are not the owners of these regulations, we can speak to them at a high level but may have some limitations as to what we can delve into.
Clause 94 is essentially a correction to the French to bring it in better line with the existing English terminology.
6:45 p.m.
Liberal
The Chair Liberal Wayne Easter
Okay. Is there anything further on that?
(Clause 94 agreed to on division.)
(On clause 95)
6:45 p.m.
Senior Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
To take a step backward, you have to understand that under the RDSP regime, essentially one has to be eligible for the disability tax credit in a year to be able to generally continue to be the beneficiary of a plan. The proposal in budget 2019 that we're talking about in this bill would adjust that so that individuals who cease to be eligible for the DTC may keep their plans open and retain the grants and bonds that have been paid into those plans.
Under the old rules, we did have a special rule that allowed for individuals who ceased to be eligible for the DTC but in future years might regain their DTC eligibility. One might imagine a disability that could wax and wane over time. Clause 95 is essentially repealing the parts of the rules that relate to that special election to keep a plan open if one expected to regain DTC eligibility. It's essentially not needed anymore, given the new proposed regime.
6:45 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 95 carry on division?
(Clause 95 agreed to on division)
(On clause 96)
6:45 p.m.
Senior Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Clause 96 deals with events that that can trigger a need to repay grants and bonds to the Government of Canada. For example, if an individual dies, their plan needs to be wound up, so it can trigger a need to repay grants and funds under certain conditions. This clause basically specifies how the rules will work under this new regime when we're no longer dealing with an individual who continues to be eligible for the disability tax credit, as opposed to an individual who is no longer eligible for the disability tax credit.
6:45 p.m.
Liberal
The Chair Liberal Wayne Easter
All right. Thanks for the explanation.
Shall clause 96 carry on division?
(Clause 96 agreed to on division)
(On clause 97)
6:45 p.m.
Senior Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Clause 97 just repeals a section that specifically related to that special election I spoke to earlier for an individual who was expected to regain DTC eligibility in the future. Again, it is no longer needed, so it's cleaning up the regulationss for that.
(Clause 97 agreed to on division)
(On clause 98)
6:45 p.m.
Senior Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Clause 98 is essentially a bit of a clarification that no repayment is required on any disability assistance payment, which is a fancy way of saying that withdrawals from the plan after an individual attains the age of 59.... It's basically just for additional clarity that there is no repayment after that age.
6:45 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 98 carry on division?
(Clause 98 agreed to on division)
(On clause 99)
6:45 p.m.
Senior Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
This is the final one with respect to these regulations.
This clause deals again with a disability assistance payment. As I said, it is a fancy way of saying that when a withdrawal from this plan occurs, it lays out any repayment requirements that would be applicable to an individual who is no longer DTC eligible.