House of Commons photoWon her last election, in 2000, with 56% of the vote.
Questions On The Order Paper February 5th, 1997
In response to (a), no trust has requested a ruling similar to the December 23, 1991 ruling and to date Revenue Canada has no knowledge that any trust has proceeded with a similar transaction.
In response to (b), as explained in the response to (a), Revenue Canada has no knowledge that any trust transferred assets abroad in circumstances similar to the 1991 ruling.
Questions On The Order Paper February 5th, 1997
Trusts are subject to tax on their annual income except to the extent the income is allocated to beneficiaries, in which case the income is subject to tax in the hands of the beneficiaries. Therefore, all income is subject to tax.
Questions concerning the shortfall of tax revenues arising from the establishment of family trusts were raised in 1994 by the Standing Committee of Finance during the committee's study on the taxation of family trusts undertaken pursuant to Standing Order 108(2).
At that time, the committee attempted to ascertain the applicable tax revenues that might have been assessed on deemed taxable capital gains had the extension to the 21-year rule not been enacted by the previous government. Such a determination required knowledge of both the cost base and the current value of assets held by those trusts. However, as trusts are not required to file annual balance sheets, information regarding the assets held by trusts was impossible to obtain.
Hence, attempts to speculate on the value of assets held in trusts and the anticipated shortfall in tax revenues as a result of the extension of the 21-year rule were not successful.
Question no. 89-
Questions On The Order Paper February 5th, 1997
In response to (a), the term "family trust" is not a defined term in the Income Tax Act. The term "personnal trust" is, however, a defined term in the act and includes: (i) testamentary trusts, established upon the death of the individual; and (ii) inter vivos trusts, established while the settlor of the trust is alive, for which generally no amount is paid by the beneficiary for the interest in the trust.
The terms "family trust" and "personal trust" are often used interchangeably. Based on 1994 statistics, there were 117,642 returns filed for personal trusts. Revenue Canada did not begin collecting trust data by computer until 1992. However, of the personal trusts that existed in 1994, 15,832 were created prior to 1972.
In response to (b), just as individuals are not required to file a balance sheet which indicates assets owned with their personal income tax returns, neither are trusts. This is so because individuals and trusts are subject to tax on annual income generated by assets and not on the basis of assets themselves. Therefore, Revenue Canada does not have information with respect ot the dollar amount of assets held by trusts.
In response to (c), as explained in the answer to (b) above, Revenue Canada does not have information with respect to the dollar amount of assets held by trusts.
The number of returns filed by personal trusts in 1994 was 117,642. The breakdown by province is as follows:
NF 400 PE 329 NS 2,823 NB 1,141 QC 16,705 ONT 56,339 MN 6,294 SK 4,035 AB 10,517 BC 18,635 NT 294 YK 130 177,642
Question No. 88-
Customs December 13th, 1996
Mr. Speaker, the responsibility that Canadian Customs officers have at our border is tremendous.
We have, in fact, the responsibility to ensure active facilitation of trade and also to ensure the safety and protection of our country. We uphold several acts that have been passed by this Parliament and we do it in a very effective and precise manner.
I suggest to the hon. member that if there are individuals who have complaints, there is a full process of appeal that we are part of. I would encourage him to support his constituents but we will uphold the acts as they have been written. We will apply our responsible actions in a fair and productive way and we take very seriously the dual role we have in Canada Customs to facilitate trade and to ensure the safety and protection of Canadians within our country.
Customs December 13th, 1996
Mr. Speaker, customs administration in this country takes very seriously its responsibility to uphold several acts that are its responsibility.
In this case we have been told and we are responsible to ensure that people who export barley and wheat across our borders have the appropriate permits. We consider that the job we have done is effective and precise in fulfilling our responsibilities.
Ways And Means December 5th, 1996
Mr. Speaker, pursuant to Standing Order 83(1), I wish to table a notice of ways and means motion to amend the Income Tax Act, the Income Tax Application Rules and another act related to the Income Tax Act. I am also tabling explanatory notes.
I ask that an order of the day be designated for consideration of the motion.
Disabled Persons December 4th, 1996
Mr. Speaker, the hon. member is referring to the disability tax credit. As I have mentioned several times in the House, my department is
working proactively and co-operatively with people who have made applications for that particular credit. The advice and direction has been given to our tax centres across the country to deal in a humane and compassionate way with individuals who have had complexities and difficulties with the department on this particular tax credit. But we apply the law as it stands right now.
As my hon. colleague, the Minister of Human Resources Development, mentioned just a few moments ago, he along with the Minister of Finance, the Minister of Justice and myself will be responding to a very good and thorough report presented to us by members of our caucus with specific focus on ways to improve those programs that we have to help Canadians with disabilities to participate actively and as full citizens in our country.
Taxation December 3rd, 1996
Mr. Speaker, as usual when it comes to questions under the Access to Information Act, the department responds directly and considerably. We reviewed all the documentation. We wanted to provide to the requester the amount of information that we could. We felt that the appropriate thing was to provide the 200 pages. The review has been made. I would point out as well that we provided all the information to the public accounts committee that it requested.
Taxation December 3rd, 1996
Mr. Speaker, the hon. Leader of the Opposition is referring to the documentation that was reviewed by the auditor general when he considered its aspects that were part of the 1991 decision made by the former Tory government.
Those pieces of information were available and were reviewed by the committees which reviewed the issues that were brought to our attention by the auditor general and they made their reports.
I would just point out that the auditor general, in response to questions at the public accounts committee, said:
"I consider the matter closed, and we shall be addressing other matters in the coming months".
Taxation November 6th, 1996
Mr. Speaker, the hon. member knows that legislation is developed and passes through this House in a particular way. He knows that my department, along with the Minister of Finance, have worked with the three Atlantic provinces to develop legislation that will harmonize the sales tax system.
As a member of the finance committee, I crossed this country and listened to Canadians who said to us: "Fix this tax. Fix it by harmonizing it. Fix it by having tax included pricing. Fix it by having one administration".
I congratulate the Atlantic provinces for having the foresight to understand that this is what will be the solution to this tax. I would suggest to the hon. member that he talk to his own province about the importance of such a solution.