FINA Committee Meeting
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MINUTES OF PROCEEDINGS
Meeting No. 185
Wednesday, May 5, 1999
The Standing Committee on Finance met at 6:49 p.m. this day, in Room 253-D, Centre Block, the Chair, Maurizio Bevilacqua, presiding.
Member of the Committee present: Maurizio Bevilacqua, Nick Discepola, Odina Desrochers, Sophia Leung, Gary Pillitteri, Karen Redman, Paul Szabo and Tony Valeri.
Acting Members present: Karen Kraft Sloan for Carolyn Bennett, Paul Forseth for Richard Harris.
In attendance: From the Library of Parliament: Marion Wrobel, Senior Analyst and Julie Cusson, Analyst. From Committees and Legislative Services Directorate: Marc Toupin, Legislative Clerk.
Witnesses: From the Department of Finance: Brian Ernewein, Director, Tax Legislation Division, Tax Policy Branch; Gérard Lalonde, Chief of Business and Property Income, Tax Legislation Division, Tax Policy Branch; Robert Dubrule, Senior Tax Policy Officer, Tax Legislation Division, Tax Policy Branch; Bill Murphy, Tax Policy Officer, Personal Income Tax Division, Tax Policy Branch.
In accordance with the Order of Reference of the House of Commons of Tuesday, April 20 1999, the Committee resumed consideration of Bill C-72, Income Tax Amendments Act, to implement measures that are consequential on changes to the Canada-U.S. Tax Convention (1980) and to amend the Income Tax Conventions Interpretation Act, the Old Age Security Act, the War Veterans Allowance Act and certain Acts related to the Income Tax Act.
The Committee proceeded to Clause-by-Clause consideration of the Bill.
Clauses 2 to 7 carried severally.
Mr. Valeri moved, - That Clause 8 be amended by replacing lines 27 to 30 on page 23 with the following:
"except that
(a) subsections 17(2) and (3) of the Act, as enacted by subsection (1), do not apply to taxation years that begin before 2000,
(b) in its application to such a taxation year that ends before March 10, 1999, subsection 17(7) of the Act, as enacted by subsection (1), shall be read as follows:
"Subsection (1) does not apply in respect of an amount owing to a corporation resident in Canada by a non-resident person if a tax has been paid under Part XIII on the amount owing.", and
(c) in its application to a taxation year that includes March 10, 1999, the amount determined under subsection 17(1) of the Act, as enacted by subsection (1), is deemed to be the amount that is equal to the total of
(i) the amount that would have been determined under that subsection if the taxation year had ended at the end of March 10, 1999 and if subsection 17(7) of the Act, as enacted by subsection (1), had read as follows:
"Subsection (1) does not apply in respect of an amount owing to a corporation resident in Canada by a non-resident person if a tax has been paid under Part XIII on the amount owing."; and
(ii) the amount that would have been determined under subsection 17(1) of the Act, as enacted by subsection (1), if the taxation year had begun immediately after the end of March 10, 1999."
After debate the question being put on the amendment, it was agreed to.
Clause 8, as amended, carried.
Clauses 9 to 31 carried severally.
Mr. Valeri moved, - That Clause 32 be amended by replacing line 20 on page 52 with the following:
"110.1(1) (a) or in the definition "total charitable".
After debate the question being put on the amendment, it was agreed to.
Clause 32, as amended, carried.
Clauses 33 to 48 carried severally.
Mr. Valeri moved, - That Clause 49 be amended by replacing, in the French version, line 41 on page 73 with the following:
"b) fiducie régie par un régime enregistré de"
The question being put on the amendment, it was agreed to.
Clause 49, as amended, carried.
Clauses 50 to 61 carried severally.
Mr. Valeri moved, - That Clause 62 be amended by:
(a) replacing lines 15 to 18 on page 118 with the following:
"(A) the individual has satisfied the condition set out in subparagraph (i) throughout at least 13 consecutive weeks in the 12-month period that ends at that time, or"
(b) replacing lines 21 to 24 on page 118 with the following:
"(B) made under a registered educational savings plan of the promoter to or for the individual in the 12-month period that ends at that time".
After debate, the question being put on the amendment, it was agreed to.
Clause 62, as amended, carried.
Clauses 63 to 92 carried severally.
Clause 1 carried.
The Title carried.
The Bill, as amended, carried.
ORDERED - That the Committee report Bill C-72 with amendments to the House as the Seventeenth Report of the Committee.
ORDERED - That Bill C-72 be reprinted as a working copy for the House of Commons at Report Stage.
At 7:00 p.m., the Committee adjourned to the call of the Chair.
Miriam Burke
Committee Clerk