Finance committee  A brief response. Okay, that is a big ask. I don't know how we can get a 100% guarantee. I think the government is moving in the right direction with PRPPs. One of the suggestions we have made about group RRSPs is helpful, because if you have an incentive for employers and small employers to be able to assist employees in contributing to RRSPs and to incent them to open an RRSP and perhaps save in an RRSP that is supplemented by their employer, that is a good start.

Finance committee  I'm sorry, I'm not understanding exactly the question. Commenting on...?

Finance committee  I'm hesitant to be positive about something that is mandatory on employers over and above what they're already contributing to CPP, especially the small business. Now, we're obviously hoping with PRPPs to have contributions both from the employee and the employer side, but making them mandatory—

Finance committee  Unfortunately, I'm going to have to get back to you on that. That would be another group within IFIC. We do have a group that can address that, and I will get something back to you in writing on that.

Finance committee  Thank you very much. My name is Debbie Pearl-Weinberg. I'm general tax counsel at CIBC. I'm also chair of the taxation working group at the Investment Funds Institute of Canada, commonly known as IFIC. I'm here today representing IFIC. My comments today don't necessarily reflect the views of my employer, CIBC.

Finance committee  Sure. That was the third item I spoke about.

Finance committee  Yes, it is the GST/HST.

Finance committee  How the investment fund industry works is that the fund is charged a management fee by the fund manager, and that entire fee is now subject to HST. From that fee, various items in running the fund are charged. Because that fee right now is entirely subject to HST, all the expenses of running the fund are now subject to HST.

Finance committee  Correct. You would not be paying the exact same amount of overall tax.

Finance committee  Are you talking about our main submission, number one?

Finance committee  If I had to pick the most important, I would say right now that it is the tax treatment of equivalent financial instruments.

Finance committee  Thank you. My name is Debbie Pearl-Weinberg, general tax counsel at CIBC and chair of the Taxation Working Group of the Investment Funds Institute of Canada, or IFIC. I'm here representing IFIC, and my comments do not necessarily reflect the views of my employer, CIBC. I'm joined by Barbara Amsden, director with IFIC.