Canadian Heritage committee  I'm not sure that we have specific ideas on that. From the viewpoint of tax policy, as I mentioned earlier, when we look at the tax system, we want to make it as efficient as possible so that it provides a regular source of revenue to ensure the expenditure needs of the government can be met.

Canadian Heritage committee  Obviously, changes in the law need to be made by Parliament, and they need to be introduced by the government. That's a decision that ultimately needs to be made. I would say that the work that's ongoing and the work we're doing with the international community is to ensure that we understand the best way to ensure proper collection of the tax.

Canadian Heritage committee  I'd like to address a couple of points. For example, the Government of Australia and the Government of New Zealand announced early last year that they would be introducing mechanisms. The regime in New Zealand just came into force. There's a long delay, essentially, or some time, between the announcement of the proposal and then working out all the details, to ensure that the companies are properly registered and that the considerations in terms of the registration regime are in place to ensure they actually work.

Canadian Heritage committee  As I mentioned in my remarks, and as you noted, there is work ongoing. There is a lot of experience in other countries related to the proper collection of the VAT or GST from foreign vendors who don't otherwise have an operation in Canada. As Madam Laflèche explained, the way the law is written right now, there's generally a self-assessment requirement on the importation of digital services, and that generally relates to the era when the law was written.

Canadian Heritage committee  I would say generally that the work of the Department of Finance, certainly in the tax policy branch, is to examine proposals that the government asks us to examine and also other aspects of the system. When we look at proposals to introduce new tax credits or new aspects of the system, we're looking at it from the tax policy perspective to see how that is going to promote fairness and efficiency in the tax system.

Canadian Heritage committee  I think the cost would certainly depend on the scope of the credit and what it would apply to. Without the specific details, that would be something that I certainly couldn't comment on.

Canadian Heritage committee  I could say, though, that the definition of a charity comes from the common law. It's not a defined term, but it comes from common law. It covers.... I'm not going to give out the waterfront of what it covers, but the relief of poverty, promotion of education, and religion are generally considered to be charitable purposes.

Canadian Heritage committee  I think that's going to have to be the case. Foundations generally.... Charitable foundations would need to have a charitable purpose. Again, it would swing back to what's the definition of the foundation's charitable purpose.

Canadian Heritage committee  I know that film and video tax credits exist in certain provinces. I couldn't comment on the efficacy of those credits. There is one at the federal level as well. It's not really my area of expertise, but I know that some provinces have film and video production tax credits.

Canadian Heritage committee  Unfortunately, no, not in any great detail.

Canadian Heritage committee  I don't personally. Again, generally those credits are something that would fall under the income tax side. There would be income tax credits that are offered. At this time, I would say that in the last budget the government announced a review of the tax expenditures that exist in the tax system to ensure they are properly targeted, well functioning, serving, as fair and efficient as possible, and as simple as possible.

Canadian Heritage committee  Thank you for inviting me to appear before the committee to discuss the application of Canada's national sales tax, the goods and services tax/harmonized sales tax, well known as the GST/HST, to supplies of digital products. As the chairman said, I'm Sean Keenan. I'm the director of the sales tax division in the tax policy branch at the Department of Finance.

Finance committee  The investments in the venture capital action plan are $400 million.

Finance committee  It is a $400-million investment.

Finance committee  I'm not the expert on the venture capital action plan in terms of how much the funds are.... There's a certain amount of leveraging taking place in that plan. I would say that the government has gone out and established a review panel, led by Mr. Tom Jenkins, to look at how to support venture capital in Canada.