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MINUTES OF PROCEEDINGS
 
Meeting No. 9
 
Thursday, June 1, 2006
 

The Standing Committee on Finance met at 10:04 a.m. this day, in Room 237-C, Centre Block, the Chair, Brian Pallister, presiding.

 

Members of the Committee present: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, Hon. John McCallum, Hon. John McKay, Massimo Pacetti, Brian Pallister, Michael Savage, Thierry St-Cyr, Hon. Garth Turner and Judy Wasylycia-Leis.

 

Acting Members present: Meili Faille for Yvan Loubier and Pierre A. Paquette for Yvan Loubier.

 

In attendance: Library of Parliament: Alexandre Laurin, Analyst; Philippe Bergevin, Analyste.

 

Witnesses: Department of Finance: Serge Dupont, Acting Assistant Deputy Minister, Financial Sector Policy Branch; Gérard Lalonde, Senior Chief, Tax Legislation; Pierre Mercille, Chief, Sales Tax Division / Tax Policy Branch / Legislation Policy; Doug Murphy, Acting Assistant Director, Economic Security Policy; Serge Nadeau, General Director, Analysis, Tax Policy Branch; Carlos Achadinha, Chief; Gerry Salembier, Director; Lalith Kottachchi, Senior Tax Policy Officer.

 
Pursuant to the Order of Reference of Friday, May 19, 2006, the Committee resumed consideration of Bill C-13, An Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006.
 

Clauses 2 to 57 inclusive carried on division severally.

 

On Clause 58,

Massimo Pacetti moved, — That Bill C-13, in Clause 58, be amended by replacing line 13 on page 64 with the following:

“(a) 15% of the amount taxable, if the”

 

After debate, the question was put on the amendment of Massimo Pacetti and it was negatived on the following recorded division: YEAS: John McCallum, John McKay, Massimo Pacetti, Michael Savage, Judy Wasylycia-Leis — 5; NAYS: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, Pierre A. Paquette, Thierry St-Cyr, Garth Turner — 6.

 
Massimo Pacetti moved, — That Bill C-13, in Clause 58, be amended by replacing line 16 on page 64 with the following:

“(b) $5,339 plus 22% of the amount by which”

 

By unanimous consent, the amendment was withdrawn.

 
Massimo Pacetti moved, — That Bill C-13, in Clause 58, be amended by replacing line 20 on page 64 with the following:

“(c) $13,170 plus 26% of the amount by”

 

By unanimous consent, the amendment was withdrawn.

 
Massimo Pacetti moved, — That Bill C-13, in Clause 58, be amended by replacing line 24 on page 64 with the following:

“(d) $24,753 plus 29% of the amount by”

 

By unanimous consent, the amendment was withdrawn.

 
Massimo Pacetti moved, — That Bill C-13, in Clause 58, be amended by replacing line 36 on page 64 with the following:

“(a) 15% of the amount taxable, if the”

 

The question was put on the amendment of Massimo Pacetti and it was negatived on the following recorded division: YEAS: John McCallum, John McKay, Massimo Pacetti, Michael Savage, Judy Wasylycia-Leis — 5; NAYS: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, Pierre A. Paquette, Thierry St-Cyr, Garth Turner — 6.

 

Clause 58 carried on division.

 

Clause 59 carried on division.

 

On Clause 60,

Massimo Pacetti moved, — That Bill C-13, in Clause 60, be amended by replacing lines 11 to 42 on page 66, lines 1 to 45 on page 67, lines 1 to 44 on page 68 and lines 1 to 17 on page 69 with the following:

“(a) for the 2005 taxation year, to be replaced by the amount that is the total of $500 and the amount that would be determined for that description for that taxation year in respect of the particular amount if this section were read without reference to this subsection and section 117.1 were read without reference to subsection 117.1(3);

(b) for the 2006 taxation year, to be replaced by the amount that is the total of $200 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (a);

(c) for the 2007 taxation year, to be replaced by the amount that is the total of $100 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (b);

(d) for the 2008 taxation year, to be replaced by the amount that is the total of $100 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c);

(e) for the 2009 taxation year, to be replaced by the amount that is the greater of

(i) the amount that is the total of $300 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and

(ii) $10,000; and

(f) for the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (e).

(3.2) The amount of $6,055 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is

(a) for the 2005 taxation year, to be replaced by the amount that is the total of $425 and the amount that would be determined for that description for that taxation year in respect of the particular amount if this section were read without reference to this subsection and section 117.1 were read without reference to subsection 117.1(3);

(b) for the 2006 taxation year, to be replaced by the amount that is the total of $170 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (a);

(c) for the 2007 taxation year, to be replaced by the amount that is the total of $85 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (b);

(d) for the 2008 taxation year, to be replaced by the amount that is the total of $85 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c);

(e) for the 2009 taxation year, to be replaced by the amount that is the greater of

(i) the amount that is the total of $255 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and

(ii) $8,500; and

(f) for the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (e).

(3.3) The amount of $606 referred to in subparagraphs (a)(ii) and (b)(iv) of the description of B in subsection (1) (in this subsection referred to as the “particular amount”) that is to be used for the purpose of determining the amount of that description is

(a) for the 2005 taxation year, to be replaced by the amount that is the total of $42.50 and the amount that would be determined for that description for that taxation year in respect of the particular amount if this section were read without reference to this subsection and section 117.1 were read without reference to subsection 117.1(3);

(b) for the 2006 taxation year, to be replaced by the amount that is the total of $17 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (a);

(c) for the 2007 taxation year, to be replaced by the amount that is the total of $8.50 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (b);

(d) for the 2008 taxation year, to be replaced by the amount that is the total of $8.50 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (c);

(e) for the 2009 taxation year, to be replaced by the amount that is the greater of

(i) the amount that is the total of $25.50 and the amount that would be determined for that description for that taxation year in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (d), and

(ii) $850; and

(f) for the 2010 and subsequent taxation years, to be replaced by the amount that is the amount that would be determined for that description for those years in respect of the particular amount by applying section 117.1 (without reference to subsection 117.1(3)) to the amount determined under paragraph (e).”

 

After debate, the question was put on the amendment of Massimo Pacetti and it was negatived on the following recorded division: YEAS: John McCallum, John McKay, Massimo Pacetti, Michael Savage, Judy Wasylycia-Leis — 5; NAYS: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, Meili Faille, Thierry St-Cyr, Garth Turner — 6.

 

Clause 60 carried on division.

 

Clauses 61 to 74 inclusive, 75.1, 75 to 132 inclusive, 133.1 and 133 to 192 inclusive carried on division severally.

 
Judy Wasylycia-Leis moved, — That Bill C-13, in Clause 193, be amended by adding after line 24 on page 167 the following:

“(1.1) Despite subsection (1), the Minister of Finance may not enter into an agreement referred to in that subsection with any person that does not meet the applicable selection criteria prescribed by regulation.”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived on the following recorded division: YEAS: Massimo Pacetti, Judy Wasylycia-Leis — 2; NAYS: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, John McCallum, John McKay, Pierre A. Paquette, Michael Savage, Thierry St-Cyr, Garth Turner — 9.

 
Judy Wasylycia-Leis moved, — That Bill C-13, in Clause 193, be amended by adding after line 11 on page 168 the following:

“(6) The Minister of Finance shall, within 30 days after the end of each fiscal year, prepare a report setting out the following with respect to that fiscal year and for every person with whom an agreement has been entered into:

(a) the first three digits of the postal code of each mortgaged or hypothecated property and each property for which mortgage or hypothec insurance was refused; and

(b) the reasons for refusing to issue mortgage or hypothec insurance.

(7) The Minister of Finance shall cause the report to be laid before each House of Parliament forthwith on the completion thereof or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that either House of Parliament is sitting.”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived on the following recorded division: YEAS: John McKay, Massimo Pacetti, Judy Wasylycia-Leis — 3; NAYS: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, John McCallum, Pierre A. Paquette, Michael Savage, Thierry St-Cyr, Garth Turner — 8.

 
Judy Wasylycia-Leis moved, — That Bill C-13, in Clause 193, be amended by adding after line 26 on page 168 the following:

“(d) the selection criteria that persons may or may not use to sell mortgage or hypothec insurance.”

 

The question was put on the amendment of Judy Wasylycia-Leis and it was negatived on the following recorded division: YEAS: Massimo Pacetti, Judy Wasylycia-Leis — 2; NAYS: Diane Ablonczy, Dean Del Mastro, Rick Dykstra, John McCallum, John McKay, Pierre A. Paquette, Michael Savage, Thierry St-Cyr, Garth Turner — 9.

 

Clause 194 carried on division.

 

Clauses 195 to 198 inclusive, 199.1, 199, 200, 201.1 and 201 to 217 inclusive carried on division severally.

 

The Short Title carried on division.

 

Schedule 1 carried on division.

 

Schedule 2 carried on division.

 

The Title carried on division.

 

The Bill carried on division.

 

ORDERED on division, — That the Chair report the Bill to the House.

 

The witnesses made statements and answered questions.

 

At 10:04 a.m., the sitting was suspended.

At 10:07 a.m., the sitting resumed.

 

At 11:37 a.m., the Committee adjourned to the call of the Chair.

 



Elizabeth B. Kingston
Clerk of the Committee

 
 
2006/06/05 10:47 a.m.