Public Accounts committee  I think it's important to note that these are proposed legislative changes. They are views presented as a list of possible technical changes prepared by the officers and the chiefs and generally the tax legislation division. I have not vetted them, nor has the assistant deputy minister, the deputy minister, or the minister, so they have not been approved by the government for release.

Public Accounts committee  Thank you for the question. I'd like to speak to two points. One is just very briefly the history of the technical bill that included these provisions. The bill was actually introduced in the Parliament that included the year 2006—I've forgotten which number that is—as Bill C-33, and did receive third reading by the House of Commons, but then Parliament prorogued.

Public Accounts committee  Thank you for the question. It's very helpful. We have heard of the Miscellaneous Statute Law Amendment Act, but I'm highly doubtful that it would have application in this circumstance. As I understand it, that provision deals with purely technical changes, such as the name of a changed department or the title of a minister.

Finance committee  If I may just add to the point, to answer your question directly, there isn't a tracking system under the HST that requires merchants to identify how much was sold in children's clothing that qualifies for exemption. They simply send in their total HST collections. Through the input and output tables Stats Canada collects--if they have a category for children's clothing--they can identify the amount sold among the HST provinces.

Finance committee  Good evening. I'm Brian Ernewein, general director, on the legislation side, in the tax policy branch at Finance.

Public Accounts committee  Perhaps sight is being lost of the basic point. First of all, this is taxpayers' money and these are the same rules we're talking about in this context that apply to each and every one of us. When we have an overpayment and are entitled to a tax refund from Revenue Canada, the rate of interest paid on that refund is the same for individuals and corporations.

Public Accounts committee  If I may, first of all, it's not currently 5% to 7%. As one of the opening sets of remarks said, it's set at the treasury bill rate, rounded up to the next point plus two. Currently the treasury bill rate is, I believe, less than 1%, so currently the interest on overpayments is 3%.

Finance committee  The $150 million is part of the transitional payment for participation by Ontario in the corporate tax collection agreement; it's for Ontario to join in the federal administration of the provincial Ontario corporate income tax. It's not related to the capital tax.

Finance committee  A very brief answer. The measure was projected to come into effect in 2011 or 2012, I believe, and the revenue estimates for the repeal of section 18.2 are $80 million for 2012-13 and $105 million for 2013-14.

Finance committee  I'm sorry, I'll be very quick. No, we're not in a position to offer anything more than we already have.

Finance committee  Again, as a policy matter, I can only speak to what the law does today. I'm not in a position to table any or announce any changes to them.

Finance committee  Again, I can't offer any announcement of the change today; I can only observe that the treatment today is the same as we would have in other circumstances. Whether it's employment income, business income, or other sources of income, if you take that and invest it and lose money on your investment, you remain taxable on your income.

Finance committee  Thank you. I think your question is at least a mix of policy and administration, but I will speak to what I draw from it in terms of the policy question. In relation to stock options, the Income Tax Act taxes employee stock options as an employee benefit. Depending on the type of stock option, the full amount of the benefit may be taxable, or for certain qualifying options issued at market price at the time the option is granted, there may be reduced taxation of the benefit.

Finance committee  Thank you. To answer the revenue estimate question first, and to fulfill the undertaking to come back to the table on that point in response to Mr. McKay's question, budget 2008 did include the revenue estimates for TFSA. Very quickly, in 2008-09, there's a relatively small amount of $5 million, growing, as tax-free savings grow of course, to $50 million for 2009-10, $190 million for 2010-11, $290 million for 2011-12, and $385 million for 2012-13.

Finance committee  I am Brian Ernewein. Very quickly, I don't have the numbers with me, or those in the 2008 budget, but we will get those and return to the table with them.