Finance committee  I'm here to describe what is in the bill, so....

Finance committee  The HST applies, but the purchaser will be allowed, generally, to claim an offsetting input tax credit.

Finance committee  The emissions allowance is like any other input for a business. When a business is involved exclusively in commercial activity, when it acquires something for whatever product it produces, it is entitled to claim ITC in respect of the tax it paid on the input it used in the cours

Finance committee  According to the amendment, the only person who will pay the HST is the purchaser, and they will generally be entitled to an offsetting input tax credit.

Finance committee  I don't want to restart a debate here, but the amendment in part 2 is about carbon allowance. There's no amendment in part 2 about carbon pricing in general. I can talk to you about the application of GST/HST on carbon allowance such as under the cap and trade system, if that's

Finance committee  The GST/HST is a broad-based tax that applies to a broad base of properties and services. Essentially, fuel is subject to the GST/HST.

Finance committee  I'm not prepared to talk about that because it's not my file.

Finance committee  The GST/HST is a multi-stage tax that applies to every stage when there's a supply, a sale, in the distribution process. Those emission allowances would be subject to HST.

Finance committee  But as I mentioned, when they are sold between two businesses, the businesses who purchase them are usually businesses that pollute. They are involved in commercial activity whether it's mining, oil and gas, or whatever. These entities are usually considered exclusive in commerci

Finance committee  Yes, but an allowance is an input to a large business. The large businesses involved in commercial activity are allowed to claim all the tax they pay on their inputs because they are going to charge tax on their final products when they are sold to a consumer.

Finance committee  I can respond directly or I can do my little presentation on that measure, if you prefer.

Finance committee  The tax on the sale of a carbon emission allowance is not changed by this measure. The measure only changes who is responsible for accounting for the tax. It used to be the vendor who collected the tax from the purchaser to remit to the CRA. Now it will be the purchaser who will

Finance committee  Yes, usually it's the seller, but there are situations in cases of certain sales of real property where it's the purchaser who has to self-assess.

Finance committee  It changes which person has to remit the tax—

Finance committee  It's for every system of emission allowance that is basically created by a government entity. Yes, it would apply to the sale currently applied on, let's say, the cap and trade system in Quebec.