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.
5:05 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 28 carry on division?
(Clause 28 agreed to on division)
(On clause 29)
Do you have a short explanation there, Trevor?
5:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 29 is a consequential amendment relating to employee stock options. It deals with a very technical issue between the interaction of a rule in section 143.3, which is an anti-avoidance rule, and it ensures that it doesn't prevent the deduction provided for employers under the new stock option rules.
5:05 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 29 carry on division?
(Clause 29 agreed to on division)
(On clause 30)
5:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 30 relates to employee life and health trusts, and in particular to migration from the former health and welfare trust regime into the new legislated employee life and health trust rules in the Income Tax Act. It provides a path for the old health and welfare trusts to transition over to the new employee life and health trust regime.
5:05 p.m.
Liberal
5:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 31—with apologies, I'm scrolling as well—is a consequential amendment relating to—
5:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
That's right. It's consequential on the change to the way the basic personal amount factors into RRSP computations.
5:10 p.m.
Liberal
The Chair Liberal Wayne Easter
Okay.
(Clause 31 agreed to on division)
Yes, it's hard keeping up with that scrolling, Trevor. I'm having a hard time here myself.
We're on clause 32.
(On clause 32)
5:10 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
As well, on clause 31, clause 31 provides a rule on advanced life deferred annuities and transfers with RRSPs as well. Many of these clauses touch on various measures, but it's a consequential amendment for the ALDA or advanced life deferred annuity rules.
Clause 32 is another consequential amendment or rule relating to advanced life deferred annuities, but in the registered retirement income fund context.
(Clause 32 agreed to on division)
5:10 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 33 relates to the measure extending the registered disability savings plan rules. When an individual ceases to be eligible for the disability tax credit, this measure provides more flexibility and allows the plan to be kept open.
(Clause 33 agreed to on division)
5:10 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 34 provides the main set of rules relating to advanced life deferred annuities. These are new investment vehicles that would help individuals provide for retirement and would also ensure that they don't outlive their savings.
(Clause 34 agreed to on division)
5:10 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 35 contains consequential amendments relating to advanced life deferred annuities and transfer rules with respect to registered pension plans—RSPs—and deferred profit-sharing plans.
(Clause 35 agreed to on division)
5:10 p.m.
Liberal
The Chair Liberal Wayne Easter
We go on to clause 36. We're at about page 60 in the bill, if anybody is looking.
(On clause 36)
5:10 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
That's right. It's at the bottom of page 60.
Clause 36 provides additional consequential rules in respect of advanced life deferred annuities.
(Clause 36 agreed to on division)
5:10 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 37 again provides a consequential amendment relating to advanced life deferred annuities.
(Clause 37 agreed to on division)
5:10 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 38 as well provides consequential amendments for advanced life deferred annuities in the pooled registered pension plan context.
(Clause 38 agreed to on division)
