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.
4 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 19 carry on division?
(Clause 19 agreed to on division)
(On clause 20)
4 p.m.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Are we going to continue to get a quick explanation?
4 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
I'd be happy to do so.
Clause 20 relates to the digital news subscription. It amends section 118.02. The recent amendments announced in the context of the support for Canadian journalism announced three measures. They're sort of scattered throughout the bill as they relate to different sections.
This particular measure relates to the digital subscription news tax credit. It provides a number of technical amendments, including a provision that when you cease to qualify for the subscription tax credit, you can send out notifications to your subscribers and then the subscribers will have a little bit more time to be able to claim the credit. This provides technical enhancements in respect of the digital news subscription tax credit.
4:05 p.m.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
I read an article somewhere about the possibility that one of these measures would actually allow digital news to double-dip. I wonder if that's somewhere in here....
I'm sorry. It's double-dipping on COVID support programs, but that's not this one yet. Give me a shout-out when we get to that one.
4:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
I will.
I have not seen that article. I do know there's a labour tax credit for qualifying journalism organizations, as well as a wage subsidy under the COVID relief. Maybe it relates to that, but both of those two measures are to come.
4:05 p.m.
Conservative
4:05 p.m.
Liberal
4:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
I'm happy to do so.
I apologize. When I glanced quickly at the section 118 amendment that was relating to the basic personal amount and there was a measure relating to spouses, I described a measure that was appearing a little bit later. Clause 21 is actually the measure that provides clarification on who qualifies as a shared-custody parent, and again it's to clarify that if you have between 60% and 40% time with the child, then you'd be a shared-custody parent.
4:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 21 relates to the Canada workers benefit. Budget 2021 announced a significant enhancement to the Canada workers benefit, both in terms of expanding access and then also in providing additional flexibility when a spouse earns income. This clause relates to the enhancement of the Canada workers benefit.
4:05 p.m.
Liberal
The Chair Liberal Wayne Easter
Are there any questions? Is it carried on division?
(Clause 21 agreed to on division)
Could you say a quick word on clause 22, Trevor?
(On clause 22)
4:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Of course. Clause 22 amends....
Is it clause 22? That's the one—
4:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Right. That's the Canada workers benefit.
4:05 p.m.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
I'm so glad. I thought I was losing my mind again, but okay, I got it. We're back on track.
4:05 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 23 relates to the tax credit in support of labour expenditures for qualifying journalism organizations. This provides support for journalism on their newsroom employees. Again, it contains a number of technical amendments in order to ensure that the program better meets its objectives.
With respect to any potential double-dipping, I'm not certain. I've not seen the article, and I'm not sure how that would work, as the journalism rules do take into account any government assistance received.
I'm afraid I can't speak to the specific tax planning that was mentioned, other than to point out that the rules do contemplate that you may be able to claim both credits and that the amount for journalism is reduced by the amount of government assistance, which would include amounts received under the wage subsidy.
4:05 p.m.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Right. I think that's exactly what this article was talking about—that it's in essence being able to double-dip.
4:05 p.m.
Liberal
The Chair Liberal Wayne Easter
We haven't voted on clause 22 yet. I know some thought we did, but we didn't, so let's vote on clause 22.
Shall clause 22 carry?
4:05 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
It's on division.
(Clause 22 agreed to on division)
(On clause 23)
4:05 p.m.
Liberal
The Chair Liberal Wayne Easter
We're on clause 23, and Trevor has explained that.
Are there any further questions?
Go ahead, Mr. Fast.