I can't answer. I actually—
Evidence of meeting #60 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was amendments.
A video is available from Parliament.
Evidence of meeting #60 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was amendments.
A video is available from Parliament.
3:40 p.m.
Associate Assistant Deputy Minister, Tax Policy Branch, Department of Finance
I can't answer. I actually—
3:40 p.m.
Associate Assistant Deputy Minister, Tax Policy Branch, Department of Finance
I don't know. As I said, it's an ongoing process.
3:40 p.m.
Conservative
Larry Maguire Conservative Brandon—Souris, MB
Mr. McGowan just said you were informed.
Anyway, having said that, obviously you were informed by the government that something was going to take place and that this reversal was going to take place. Did cabinet have to approve this new policy direction, or could it solely be made by the Minister of Finance?
3:40 p.m.
Associate Assistant Deputy Minister, Tax Policy Branch, Department of Finance
I would say that these decisions are made by the government and implicitly the cabinet—the cabinet with respect to tax-related matters. It can be the Prime Minister with the Minister of Finance along with other ministers, depending on, potentially, the nature of the issue. It's a decision that is taken in concert by the federal government.
3:45 p.m.
Conservative
Larry Maguire Conservative Brandon—Souris, MB
You know, I understand that the government doesn't like Bill C-208, but not a single amendment was put forward by the government through this whole process, and now we still don't have amendments. The government is talking about them here, but if there are amendments, why aren't we seeing them now, so that we can discuss them before a committee like today's?
Have you been asked to put forward amendments? You've had 20 years.
3:45 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
The government announced its intention to release...or said that amendments to the Income Tax Act relating to intergenerational transfers would be forthcoming. In its July 19 press release, the government announced an intention to release draft legislative proposals on the subject.
3:45 p.m.
Conservative
Larry Maguire Conservative Brandon—Souris, MB
What specific legal authority did Finance use to release and announce this tax policy change without providing amendments?
3:45 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
I'm sorry. I'm not certain that I....
3:45 p.m.
Conservative
Larry Maguire Conservative Brandon—Souris, MB
I'm just asking what specific legal authority Finance used to issue the release and announce this tax policy change in a press release.
3:45 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Jenifer, I see that you've gone off mute.
3:45 p.m.
Executive Director and Senior General Counsel, Legal Services, Law Branch, Department of Finance
I'll try to answer that in terms of legal authority. It's a news release from the government, as my colleagues have said. It was a government decision to issue a news release. However, a change to the law requires Parliament's approval, and that's why in fact both news releases speak of an intention to introduce legislation, which would go to Parliament and go through the whole process in the House and the Senate. There would be a change in law only once there was royal assent.
The legal authority to change the law comes from Parliament, and that is what's referred to in the news release.
3:45 p.m.
Conservative
Larry Maguire Conservative Brandon—Souris, MB
Clearly, there are no amendments forward to clarify for small businesses in Canada what the government's intentions are.
3:45 p.m.
Executive Director and Senior General Counsel, Legal Services, Law Branch, Department of Finance
The government has said in its news release what its intentions are. Those intentions are to introduce proposals, proposed legislative amendments, which can't become law until Parliament decides.
3:45 p.m.
Conservative
Larry Maguire Conservative Brandon—Souris, MB
There's nothing stopping them from discussing those amendments today, because we've had decades of discussion on this particular topic. It leads those in small business today to really—
July 20th, 2021 / 3:45 p.m.
Conservative
Larry Maguire Conservative Brandon—Souris, MB
I'll go back to my colleague Mr. Fast's comments. He called it the tax cheat issues. I'll be clear that the Prime Minister's very words were something to the effect that small businesses are just formed to allow for tax avoidance. I think that's a pretty clear message from the top leadership of the country as to what they think of small businesses. To come out in the release and say, oh, we're one of the most friendly governments ever to be in place for small businesses....
I've had chartered accountant firms tell me that this bill is probably the most significant change to help small businesses in the last 20 years. There's a great dichotomy of opinion here. I would ask why we still can't see some of the amendments or why we're not here today discussing some of the amendments. They've obviously been talked about, because the department put forward its case before the House and before the Senate, and both houses, both chambers of the parliamentary process, passed this bill.
I'll leave it at that, Mr. Chair. I don't know if there's an answer from the government or from the finance department as to why we're not seeing amendments today. I will ask this simple question: Has the government instructed the finance department to come up with any amendments yet?
That was my final question, Mr. Chair.
3:45 p.m.
Liberal
The Chair Liberal Wayne Easter
I guess that's a question for you folks. Has the government instructed the finance department to come up with amendments? I would refer you to the press release on that matter.
Go ahead, Mr. McGowan, Ms. Aitken or whoever.
3:45 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
The press release states that amendments are forthcoming. That is something we're working on, consistent with the announcement of the Government of Canada that the amendments are forthcoming.
3:50 p.m.
Liberal
The Chair Liberal Wayne Easter
If I may, they will be based on the consultations. Is that correct, Trevor?
3:50 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
We're certainly working on putting together amendments. Again, these are the ones announced on July 29. Of course, in doing so, I don't want to suggest that we've launched a formal consultation process that we'd need to end before the draft legislative proposals are released, but certainly we've already heard from stakeholders with suggestions on ways in which the bulleted issues could be addressed.
3:50 p.m.
Liberal
The Chair Liberal Wayne Easter
I think you said July 29. You meant July 19, if I'm correct. This press release was July 19.
3:50 p.m.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
I apologize. That was another slip of the tongue.
3:50 p.m.
Liberal
The Chair Liberal Wayne Easter
That's fine, Trevor. Thank you.
Mr. Maguire, you said that the government doesn't like Bill C-208. The minister made it clear that the Government of Canada is committed to facilitating genuine intergenerational share transfers, and it has raised some concerns with Bill C-208. Let's be absolutely clear on what's happening here.
We'll go now to Ms. Bendayan, and then Mr. Kelly will close it off.