Thank you, Mr. Chair.
Thank you to all members of the committee for inviting us to be with you today on this very important topic.
It was really interesting to hear the debate and the discussion over the last hour. I think it underscores the importance of this policy issue, certainly, in the current labour market context and the value of the member's contribution in bringing this bill forward.
Maybe I can just start by reiterating what the current law of the land is. The current tax system has a labour mobility deduction for tradespeople.
In Budget 2022, the government proposed a labour mobility deduction for tradespeople, similar in form and intent to the measure that Bill C‑241 seeks to introduce.
On June 23, 2022, Parliament passed Bill C‑19, which included amendments to the Income Tax Act to create tradespeople's mobility deductions, as proposed in Budget 2022.
Again, it's part of the current tax system. In fact, the Canada Revenue Agency is currently finalizing forms and administrative procedures, including guidance, to allow taxpayers to claim the labour mobility deduction for the 2022 tax year this coming spring. This is the time of year when the CRA is getting everything together so we can be ready for filing season.
Compared with the deduction that would be enacted by the bill you are considering today, Bill C-241, the labour mobility deduction that is already in law provides greater clarity on the definitions of some concepts and includes safeguards that contain its scope and cost. For example, Bill C-241 doesn't define travelling expenses or construction activity and uses the term “tax credit”, which is not a defined term in law. The bill also requires no minimum period of relocation, places no limit on the number of trips or the amount of expenses that could be deducted in the year and makes no allowance for trips that might span multiple tax years.
If Bill C‑241 were enacted, taxpayers would be using two substantially similar deductions that serve the same purpose. This would likely cause administrative difficulties for the Canada Revenue Agency and create confusion for tax filers, especially since the 2022 tax filing season will soon begin.
Once again, thank you. We will be happy to answer any questions that members may have on this or other elements of Bill C‑241.