Finance committee  That's right. It's consequential on the change to the way the basic personal amount factors into RRSP computations.

Finance committee  No, you can't. You get the greater of the two, but not both.

Finance committee  Both the wage subsidy and the recovery subsidy will exist at the same time for a number of periods.

Finance committee  Clause 25 is a consequential amendment on the employee stock option measure. It specifically relates to the calculation of foreign tax credits and deductions you're allowed to take, so it's a consequential amendment for employee stock options. (Clause 25 agreed to on division) (On clause 26)

Finance committee  Clause 26 relates to the foreign affiliate dumping measure. The main measure amends section 212.3 of the Income Tax Act and comes later. This clause deals with a specific case in which a tax avoidance strategy could be used to affect foreign affiliate dumping through the use of a foreign corporation that immigrates to Canada.

Finance committee  Clause 27 relates to the “allocations to redeemers” measure, which relates to certain mutual fund trusts. Over the last several years, the mutual fund trust industry has developed a methodology for avoiding double taxation whereby they have redeeming unitholders. Some planning had evolved in order to achieve tax deferrals or recharacterization benefits through the use of this methodology, so this measure would prevent the use of this “allocations to redeemers” methodology, which was intended to prevent double tax, from providing tax benefits.

Finance committee  I would be happy to do so. Thank you. I'm sorry. I'm trying to balance going quickly with providing a full explanation, and it is a complex measure. A mutual fund trust is a trust with a number of unitholders, and those unitholders can achieve liquidity, which is to say sell their investment or change their investment for cash, either through selling their units in the market or through a redemption of their units.

Finance committee  Thank you for the question. I'd be happy to respond to it. Mechanically, the operation of the rules is very simple, in that you have both the wage subsidy and the new recovery subsidy that exist in tandem for a number of qualifying periods as the wage subsidy rates are being transitioned down.

Finance committee  Thank you. I would be happy to speak to that. I'll start with the wage subsidy, but the considerations for the rent subsidy are exactly the same, I think. Paragraph 24(9)(k) of the base percentage definition, towards the bottom of page 30 of the bill, at line 27 or 28, sets the nil base rate that we discussed earlier for the wage subsidy for the last two qualifying periods, and it allows for the flexibility—should the government decide to effectively extend the wage subsidy into those two periods, as circumstances may require—to set new rates by regulation.

Finance committee  Yes, that was the intent behind the wording I just discussed. It was that different rates could apply for different taxpayers, and the determination of the rates that would apply in different circumstances could be provided through regulations.

Finance committee  Yes, that was absolutely the intent behind the drafting. I explained the rationale for the specific change in wording. I would note that we have heard from different industry groups a request to extend the wage subsidy beyond the end of November based on the different recovery rates for different industries.

Finance committee  There is the possibility of retroactive tightening of tax changes, but as was noted, they tend to be exceedingly rare. Off the top of my head, I can't think of any. I know there is the possibility of doing it, but I can't recall any retroactive tightening of tax changes that would apply in the context of a refundable tax credit that involves the taking back of amounts expended.

Finance committee  I can't provide advice on the merits on any sort of claim against this type of change.

Finance committee  The requirement to repay in respect of increases in executive compensation only applies to publicly listed companies and their subsidiaries.

Finance committee  Thank you. I would be happy to do so. There are provisions in the bill that would allow for the extension of the wage and rent subsidies up until the end of November. There are currently two additional qualifying periods at the end of the subsidies. One runs from September 26 to October 23; that's the twenty-first period.