Evidence of meeting #72 for International Trade in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was information.
A recording is available from Parliament.
Special Advisor to the Commissioner of the Canada Revenue Agency, Canada Revenue Agency
I'll make a couple of comments.
You referred to switching to a one-time declaration. The legislation is currently based on an annual filing. I just wanted to clarify that.
Conservative
Special Advisor to the Commissioner of the Canada Revenue Agency, Canada Revenue Agency
Yes. I just wanted to clarify it in case there were others paying attention today.
Secondly, on the question about the intent and the design of the legislation, again, that's for the Department of Finance, but I think if you look at the budget materials at the time it was introduced, there was a focus on vacant or underused housing in Canada and how that might tie into the lack of availability and, hence, increased prices of housing in Canada.
Conservative
Special Advisor to the Commissioner of the Canada Revenue Agency, Canada Revenue Agency
No. I said in Canada generally. I'm sorry.
Conservative
Dave Epp Conservative Chatham-Kent—Leamington, ON
In Canada, but in rural Canada.... That leads me, if I can pick up on a question by my colleague, Mr. McKay, to the metropolitan census data.
Pelee Island is in my riding, and it is separated by 14 km of water. I put out an Order Paper question to the department to make a determination of whether Pelee Island, separated by 14 km of water, was part of the Windsor-Essex metropolitan census data, and the department refused to interpret their own law.
Would that be consistent with your broad policy? I'm picking up from Ms. Rizzo's earlier comments that the department would interpret their legislation.
Special Advisor to the Commissioner of the Canada Revenue Agency, Canada Revenue Agency
I'm not familiar with that particular request. I'm sorry, I don't have all the information on that.
Conservative
Dave Epp Conservative Chatham-Kent—Leamington, ON
Lastly—I know I'm extending my time here—with regard to bare trusts, can you explain how capturing a bare trust, particularly how a father with four daughters helping his daughter buy a house, adds to the overarching policy of addressing housing pricing?
Special Advisor to the Commissioner of the Canada Revenue Agency, Canada Revenue Agency
Certainly one of the issues we have to work through in the administration of the legislation is the various ownership structures that might be in place. That is one of the issues we would be working through in our administration of it.
Conservative
Dave Epp Conservative Chatham-Kent—Leamington, ON
Thank you, Madam Chair.
I have overextended my time. If there's anything left, I would be glad to cede it.
Liberal
Chandra Arya Liberal Nepean, ON
Thank you, Madam Chair.
I looked at the website where the number of returns filed is provided. As of last week, 29,382,000 returns had been were filed, and 92.8% of them were filed electronically.
Do you have any information on the number of returns that were filed for UHT?
Director General, Business Returns Directorate; Assessment, Benefit and Service Branch, Canada Revenue Agency
As of June 15, we had received about 135,000 returns filed under UHT.
Director General, Business Returns Directorate; Assessment, Benefit and Service Branch, Canada Revenue Agency
I'm sorry. The number you're referring to is the T1 filing.
Director General, Business Returns Directorate; Assessment, Benefit and Service Branch, Canada Revenue Agency
The number I provided you with is the UHT.
Liberal
Director General, Business Returns Directorate; Assessment, Benefit and Service Branch, Canada Revenue Agency
It's 135,000.
Liberal
Director General, Business Returns Directorate; Assessment, Benefit and Service Branch, Canada Revenue Agency
As you know, the penalty and the interest were waived as a result of an announcement made by CRA on March 27. The people impacted have until the end of October 31 to pay, if they owe anything, without incurring penalties and interest, but effectively, what that means is our clients can still file until that time.
Director General, Business Returns Directorate; Assessment, Benefit and Service Branch, Canada Revenue Agency
So far, we have less than 5% of the returns filed where the amount had been owed.
Liberal
Chandra Arya Liberal Nepean, ON
Less than 5%, or approximately 6,000 applicants filed. Okay.
When this legislation was proposed, I'm sure you would have done a macro study to identify the number of units that might come under this after giving all of the exemptions. What was that number?
Director General, Business Returns Directorate; Assessment, Benefit and Service Branch, Canada Revenue Agency
The number was estimated by the Department of Finance. They estimated that 10% of the overall UHT returns filed would have money owing.
