Finance committee  In my opinion, this motion is an excellent solution, although it does cover a wide range of issues. In my opinion, paragraph (c) is pointless—and I say this with all due respect for the work done by Ms. Jennings. If the company is not a PSB, a personal services business, the right tax rate will be used.

Finance committee  My understanding is that this is a national issue. We met Mr. Jolie from the ARC in the spring, and examples were given to the same effect. Also, I wanted to mention to you that the criteria under which companies are defined as being personal businesses might differ in Quebec from Canada because of the Code civil.

Finance committee  [Editor's Note: Inaudible] we don't need to do that. It is clear that if the act were amended, that would not be necessary.

Finance committee  Good morning. Thank you for having invited us. As Mr. Sabourin explained, we took a quick look at the provisions of the act. As we understand it, a person who operates a business is entitled to deduct expenses he or she has incurred to earn income, as stipulated in section 18 of the Income Tax Act.