Speech (committee meeting)

{
    "time": "2013-11-18 16:20:00",
    "attribution": {
        "en": "Mr. Ted Cook",
        "fr": "M. Ted Cook"
    },
    "content": {
        "en": "<p data-HoCid=\"3482024\" data-originallang=\"en\">Just to clarify, it was a drafting error made at the Department of Finance. What it related to is not the rate of tax that would apply to credit unions after the phase-out. </p>\n<p data-HoCid=\"3482025\" data-originallang=\"en\">During the phase-out period, 80% of the income would be eligible for the additional deduction. </p>\n<p data-HoCid=\"3482026\" data-originallang=\"en\">That extra 20% during the phase-out period\u201420%, and then 40%, and then 60%\u2014wasn't properly accounted for in a cross-reference in the act. As a result, that income would not have been eligible for the general rate reduction. It would not have been included in full rate taxable income, with the result that this income would have been subject to tax at 28% as opposed to 15%.</p>\n<p data-HoCid=\"3482027\" data-originallang=\"en\">Now, once the phase-out period was over, our view is that the system would have returned to the state it should be. Credit unions weren't looking at 28% tax going forward. The economic effect would have been to shorten the phase-out period to somewhere between two or three years as opposed to the five years that was indicated.</p>\n<p data-HoCid=\"3482028\" data-originallang=\"en\">In terms of how it happens, when we're drafting we try to make our best evaluation of whether we have things nailed down. </p>\n<p data-HoCid=\"3482029\" data-originallang=\"en\">As you probably know, all the measures that are included in this bill were released for consultation in September. The measures that are more complex or would benefit from consultation tend to be put in the second bill and are released for consultation, and this gives practitioners a chance to review the legislation. </p>\n<p data-HoCid=\"3482030\" data-originallang=\"en\">I would note that we didn't get any comments on our proposed fix with respect to credit unions. Everyone seems to accept that it works.</p>\n<p data-HoCid=\"3482031\" data-originallang=\"en\">We thought that we had it dialed in and ready for BIA 1, but we did not.</p>",
        "fr": "<p data-HoCid=\"3482024\" data-originallang=\"en\">Pour clarifier les faits, il s'agit d'une erreur de r\u00e9daction commise au minist\u00e8re des Finances. Ce n'\u00e9tait pas une allusion au taux d'imposition qui s'appliquera aux caisses de cr\u00e9dit apr\u00e8s la p\u00e9riode d'\u00e9limination graduelle.</p>\n<p data-HoCid=\"3482025\" data-originallang=\"en\">Pendant cette p\u00e9riode, 80 % des revenus seront admissibles au cr\u00e9dit suppl\u00e9mentaire.</p>\n<p data-HoCid=\"3482026\" data-originallang=\"en\">Les 20 % restants \u2014 20, ensuite 40 et 60 % \u2014 n'ont pas \u00e9t\u00e9 correctement comptabilis\u00e9s dans un renvoi \u00e0 la loi. Par cons\u00e9quent, cette part de revenus n'aurait pas \u00e9t\u00e9 admissible \u00e0 la r\u00e9duction du taux g\u00e9n\u00e9ral ni consid\u00e9r\u00e9e comme un revenu imposable au taux complet, ce qui veut dire qu'elle n'aurait pas \u00e9t\u00e9 assujettie \u00e0 un taux de 28 % plut\u00f4t que de 15 %.</p>\n<p data-HoCid=\"3482027\" data-originallang=\"en\">Lorsque la p\u00e9riode d'\u00e9limination graduelle sera termin\u00e9e, nous pensons que le r\u00e9gime fiscal sera de nouveau comme il doit \u00eatre. Les caisses de cr\u00e9dit ne devaient donc pas s'attendre \u00e0 avoir dor\u00e9navant un taux d'imposition de 28 %. La cons\u00e9quence \u00e9conomique aurait \u00e9t\u00e9 de r\u00e9duire d'un an ou deux la p\u00e9riode d'\u00e9limination graduelle par rapport aux cinq ans pr\u00e9vus.</p>\n<p data-HoCid=\"3482028\" data-originallang=\"en\">En ce qui concerne la mise en application d'une telle mesure, nous t\u00e2chons de d\u00e9terminer le mieux que nous le pouvons l'efficacit\u00e9 de notre approche \u00e0 l'\u00e9tape de la r\u00e9daction.</p>\n<p data-HoCid=\"3482029\" data-originallang=\"en\">Comme vous le savez probablement, toutes les mesures pr\u00e9vues dans le projet de loi ont \u00e9t\u00e9 publi\u00e9es en septembre \u00e0 des fins de consultation. Les mesures plus complexes ou susceptibles d'\u00eatre am\u00e9lior\u00e9es sont g\u00e9n\u00e9ralement incluses dans le deuxi\u00e8me projet de loi en plus d'\u00eatre elles aussi publi\u00e9es \u00e0 des fins de consultation. Cette fa\u00e7on de proc\u00e9der permet de donner du temps aux fiscalistes pour examiner le document.</p>\n<p data-HoCid=\"3482030\" data-originallang=\"en\">J'aimerais faire remarquer que nous n'avons re\u00e7u aucun commentaire sur les mesures correctives que nous avons propos\u00e9es au sujet des caisses de cr\u00e9dit. Tout le monde semble s'entendre pour dire qu'elles sont ad\u00e9quates.</p>\n<p data-HoCid=\"3482031\" data-originallang=\"en\">Nous pensions qu'elles seraient pr\u00eates \u00e0 temps pour la premi\u00e8re Loi d'ex\u00e9cution du budget, mais ce n'est pas le cas.</p>"
    },
    "url": "/committees/finance/41-2/6/ted-cook-22/",
    "politician_url": null,
    "politician_membership_url": null,
    "procedural": false,
    "source_id": "8135198",
    "document_url": "/committees/finance/41-2/6/",
    "related": {
        "document_speeches_url": "/speeches/?document=%2Fcommittees%2Ffinance%2F41-2%2F6%2F"
    }
}