Finance committee  The next measure is found in clause 18 of the bill. More particularly, it's found in subclauses 18(3), 18(6) and 18(11). It relates to another reassessment period in respect of foreign affiliates of a taxpayer. As we just discussed, there is an extended three-year reassessment period where a Canadian taxpayer gets reassessed in respect of a transaction with non-arm's-length non-residents.

Finance committee  Again, it depends on the type of corporation. If the normal reassessment period is three or four years, it would be six or seven years. The next measure is found in clauses 22, 23 and 24 of the bill. It relates to reassessment periods and requirements for information and compliance orders.

Finance committee  The next measure in the bill is found in clause 18. It relates to the reassessment period for non-resident and non-arm's-length persons. For this one, it might be helpful to add a bit more precision. It's found in subclauses 18(2), 18(4), 18(5), 18(7), 18(10) and 18(12). There is more than one measure in clause 18.

Finance committee  It's a little complex, but I think a simple example might help. If you have a transaction with a non-arm's-length non-resident, the Canada Revenue Agency currently has an additional three-year reassessment period. They can go back a little further to reassess. Let's say that the taxpayer claimed a loss of $100 and that as a result of this reassessment within the previous period it was reduced to a $40 loss, so that $60 of the loss had been denied.

Finance committee  That's right.

Finance committee  That is correct. There was an issue with the existing 10% threshold. If a charity, in pursuing its charitable objectives for poverty, advancement of education or what have you, exceeded that 10% limit and was doing so in a non-partisan way, the prohibition against indirect or direct support of a specific political party or candidate was maintained from the currently existing rules.

Finance committee  I would like to clarify one thing, again, by setting up precisely what this bill does. Currently there's a limit on how much political spending or activities a charity can do that the 10% limit.... It's actually expressed in the legislation as “all” or “substantially all” of your activities can't be political.

Finance committee  Thank you for your question. As with you, the.... Sorry. Go ahead.

Finance committee  Those were clauses 13, 18 and 19 of the bill.

Finance committee  That is correct. It ensures the measure works appropriately and, as I said, this interpretive issue is dealt with appropriately going back 10 years, which aligns with the period for being able to retroactively go back and claim credits.

Finance committee  The next measure is in clause 15 of the bill. This measure builds upon a measure introduced in the first budget bill of this year, dealing with passive investment income earned by private corporations. It ensures that in a very particular situation, where losses from a previous year are carried forward to offset taxes under part 4 of the Income Tax Act, which are fairly rare....

Finance committee  Charities and political activities were in clauses 17—that's the main clause—and clause 20 of the bill. Clause 20 is a consequential amendment.

Finance committee  Yes, that's correct.

Finance committee  I believe this issue was raised by the Canada Revenue Agency in its application of the program where it asked.... There is a rule that says you can be treated as a child of an individual in the tax act if that individual is, among other conditions, not the biological parent but you, the child, are wholly dependent on them.

Finance committee  The next measure is found in clauses 12 and 35 to 38 of the bill. It relates to improving access to the new Canada workers benefit. Budget 2018 announced the introduction of the Canada workers benefit, which replaces the former working income tax benefit. The first budget implementation bill of 2018 contained the introduction of the new CWB, as well as the enhancement of the program relative to the former working income tax benefit.