MINUTES OF PROCEEDINGS
WEDNESDAY, APRIL 9, 1997
(Meeting No. 93)
(Meeting No. 93)
[Translation]
The Standing Committee on Finance met at 4:13 o'clock p.m. this day, in Room 536, Wellington Building, the Chair, Jim Peterson, presiding.
Members of the Committee present: Dianne Brushett, Barry Campbell, Brenda Chamberlain, Herb Grubel, Jim Peterson, Gary Pillitteri, Roger Pomerleau, Brent St. Denis and Susan Whelan.
Acting Member present: John Richardson for Ron Fewchuk.
In attendance: From the Research Branch of the Library of Parliament: Richard Domingue and Marion Wrobel, Research Officers. From the Committees and Parliamentary Associations Directorate: Paulette Nadeau, Clerk.
Pursuant to an Order of Reference of the House dated June 17, 1996, the Committee commenced its consideration of Bill C-37, An Act to implement an agreement between Canada and the Russian Federation, a convention between Canada and the Republic of South Africa, an agreement between Canada and the United Republic of Tanzania, an agreement between Canada and the Republic of India and a Convention between Canada and Ukraine, for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
Witnesses: From the Department of Finance: Leonard L. Farber, Director General, Tax Legislation Division; Brian Ernewein, Chief, Corporate and International Tax.
At 4:15 o'clock p.m., the sitting was suspended.
At 4:29 o'clock p.m., the sitting resumed.
The witnesses made statements and answered questions.
The Chair called Clause 2.
Clauses 2 to 31 carried.
The Schedules 1 to 5 carried.
Clause 1 carried.
The Title carried.
The Bill carried.
ORDERED,--That the Chair report Bill C-37 to the House.
On motion of Brent St. Denis, it was agreed,--That the Committee reimburse the cost of the thank-you gift given by Sub-committee on international financial institutions of the Standing Committee on Finance when in Washington.
At 5:00 o'clock p.m., the Committee adjourned to the call of the Chair.
MONDAY, APRIL 14 1997
(Meeting No. 94)
(Meeting No. 94)
[Translation]
The Standing Committee on Finance met at 3:10 o'clock p.m. this day, in Room 209, West Block, the Chair, Jim Peterson, presiding.
Members of the Committee present: Leon Benoit, Barry Campbell, Ron Duhamel, Ron Fewchuk, Herb Grubel, Jim Peterson, Gary Pillitteri and Susan Whelan.
Acting Member present: Michel Guimond for Richard Bélisle, Roy Cullen for Brent St. Denis and Peter Thalheimer for Brenda Chamberlain.
In attendance: From the Research Branch of the Library of Parliament: Richard Domingue and Marion Wrobel, Research Officers. From the Committees and Parliamentary Associations Directorate: Charles Bellemare and Luc Fortin, Clerks.
Witnesses: As individual: Marion Dewar; Elisabeth Beattie. From the Department of Finance: Leonard L. Farber, Director General, Tax Policy Branch.
Pursuant to an Order of Reference of the House dated April 10, 1997, the Committee resumed its consideration of Bill C-92, An Act to amend the Income Tax Act, the Income Tax Application Rules and another Act related to the Income Tax Act. (See Minutes of Proceedings dated April 14, 1997, Meeting No. 94, Issue No. 11).
The witnesses made statements and answered questions.
The Chair called Clause 2.
Clauses 2 and 3 carried.
Clause 4
Barry Campbell moved,--That Clause 4 be amended by replacing line 42 on page 7 with the following:
``(7) Subsection (3) applies to the 1997 and''
The question being put on the amendment, it was agreed to, on division.
Clause 4, as amended, carried, on division.
Clauses 5 to 8 carried severally, on division.
Clause 9
Barry Campbell moved,--That Clause 9 be amended by replacing line 2 on page 15 with the following:
``first such amount was received, except that, where the agreement or order is made after April 1997 and varies a child support amount payable to the recipient from the last such amount received by the recipient before May 1997, each varied amount of child support received under the agreement or order is deemed to have been receivable under an agreement or order the commencement day of which is the day on which the first payment of the varied amount is required to be made.''
The question being put on the amendment, it was agreed to, on division.
Clause 9, as amended, carried, on division.
Clause 10 carried, on division.
Clause 11
Barry Campbell moved,--That Clause 11 be amended by replacing line 4 on page 19 with the following:
``first such amount was paid, except that, where the agreement or order is made after April 1997 and varies a child support amount payable to the recipient from the last such amount paid to the recipient before May 1997, each varied amount of child support paid under the agreement or order is deemed to have been payable under an agreement or order the commencement day of which is the day on which the first payment of the varied amount is required to be made.''
The question being put on the amendment, it was agreed to, on division.
Clause 11, as amended, carried, on division.
Clauses 12 to 16 carried severally, on division.
Clause 17
Barry Campbell moved,--That Clause 17 be amended by replacing line 12 on page 42 with the following:
``that occur in an insurer's 1997 or subse-''
The question being put on the amendment, it was agreed to, on division.
Clause 17, as amended, carried, on division.
Clauses 18 to 22 carried severally, on division.
Clause 23
Barry Campbell moved,--That Clause 23 be amended by replacing line 9 on page 52 with the following:
``(2) Subsection (1) applies to the 1997 and''
The question being put on the amendment, it was agreed to, on division.
Clause 23, as amended, carried, on division.
Clauses 24 to 38 carried severally, on division.
Clause 39
Barry Campbell moved,--That Clause 39 be amended by replacing line 2 on page 75 with the following:
``1996 or a preceding taxation year means''
The question being put on the amendment, it was agreed to, on division.
Barry Campbell moved,--That Clause 39 be amended by replacing lines 8 to 10 on page 75 with the following:
``(18) Subsections (1), (4) to (7), (9), (10) and (15) to (17) apply to the 1997 and subsequent taxation years.
(18.1) Subsections (2), (3), (8) and (12) apply to the 1996 and subsequent taxation years.''
The question being put on the amendment, it was agreed to, on division.
Barry Campbell moved,--That Clause 39 be amended by replacing line 13 on page 75 with the following:
``its 1997 or a subsequent taxation year.
(19.1) Paragraph 138(11.91)(d>) of the Act, as enacted by subsection (13), applies to the 1997 and subsequent taxation years.
(19.2) Paragraph 138(11.91)(d>.1) of the Act, as enacted by subsection (13), applies to the 1996 and subsequent taxation years.''
The question being put on the amendment, it was agreed to, on division.
Barry Campbell moved,--That Clause 39 be amended by replacing line 17 on page 75 with the following:
``business in its 1997 or a subsequent taxation''
The question being put on the amendment, it was agreed to, on division.
Clause 39, as amended, carried, on division.
Clause 40
Barry Campbell moved,--That Clause 40 be amended by replacing line 21 on page 75 with the following:
``(2) Subsection (1) applies to the 1997 and''
The question being put on the amendment, it was agreed to, on division.
Clause 40, as amended, carried, on division.
Clauses 41 to 61 carried severally, on division.
Clause 62
Barry Campbell moved,--That Clause 62 be amended by replacing line 10 on page 110 with the following:
``share that was issued by any other labour-sponsored venture capital corporation is disposed of, the person who''
The question being put on the amendment, it was agreed to, on division.
Barry Campbell moved,--That Clause 62 be amended by replacing line 26 on page 110 with the following:
``corporation and was at any time an approved share, the amount, if any, re-''
The question being put on the amendment, it was agreed to, on division.
Barry Campbell moved,--That Clause 62 be amended by replacing line 9 on page 112 with the following:
``of a disposition of a share, or''
The question being put on the amendment, it was agreed to, on division.
Clause 62, as amended, carried, on division.
Clauses 63 and 64 carried severally, on division.
Clause 65
Barry Campbell moved,--That Clause 65 be amended by replacing line 13 on page 119 with the following:
``(4) Subsections (1) to (3) apply to the 1997''
The question being put on the amendment, it was agreed to, on division.
Clause 65, as amended, carried, on division.
Clauses 66 to 70 carried severally, on division.
Clause 71
Barry Campbell moved,--That Clause 71 be amended by replacing lines 27 to 34 on page 139 with the following:
``ring hydrocarbons (other than coal) which hydrocarbons have''
(a) a viscosity, determined in a prescribed manner, equal to or greater than 10,000 centipoise, or
(b) a density, determined in a prescribed manner, equal to or less than 12 degrees API;''
The question being put on the amendment, it was agreed to, on division.
Barry Campbell moved,--That Clause 71 be amended by replacing lines 31 to 34 on page 140 with the following:
``(h) where all or part of a natural gas processing plant is devoted primarily to the recovery of ethane, the plant, or the part of the plant, as the case may be, is considered not to be a natural gas processing plant;''
The question being put on the amendment, it was agreed to, on division.
Barry Campbell moved,--That Clause 71 be amended by replacing lines 17 to 21 on page 142 with the following:
``subsection (1), applies to the 1996 and subsequent taxation years.
(5.1) The definition ``designated insurance property'' in subsection 248(1) of the Act, as enacted by subsection (3), applies to the 1997 and subsequent taxation years.''
The question being put on the amendment, it was agreed to, on division.
Clause 71, as amended, carried, on division.
Clauses 72 to 75 carried severally, on division.
Clause 1 carried, on division.
The Title carried, on division.
The Bill carried, on division.
Ordered,--That Bill C-92, An Act to amend the Income Tax Act, the Income Tax Application Rules and another Act related to the Income Tax Act, as amended, be reprinted for the use of the House of Commons.
Ordered,--That the Chair report Bill C-92 to the House.
At 4:38 o'clock p.m., the Committee adjourned to the call of the Chair.
WEDNESDAY APRIL 16, 1997
(Meeting No. 95)
(Meeting No. 95)
[Translation]
The Standing Committee on Finance met at 3:22 o'clock p.m. this day, in Room 701, La Promenade, the Chair, Jim Peterson, presiding.
Members of the Committee present: Richard Bélisle, Dianne Brushett, Barry Campbell, Brenda Chamberlain, Ron Duhamel, Ron Fewchuk, Herb Grubel, Jim Peterson, Brent St. Denis and Susan Whelan.
In attendance: From the Research Branch of the Library of Parliament: Richard Domingue and Marion Wrobel, Research Officers. From the Committees and Parliamentary Associations Directorate: Charles Bellemare, Clerk.
Witnesses: From the Department of Finance: Steve Tierney, Project Director, Federal-Provincial Taxation Group; Yvon Carrière, Legislative Counsel, Tax Counsel Division; Bruce Wood, Tax Policy Officer, Tax Legislation Division; Mary Ellen Cavett, Legal Counsel, General Legal Services; Lawrence Purdy, Senior Tax Policy Officer, Tax Legislation Division.
Pursuant to an Order of Reference of the House dated April 15, 1997, the Committee commenced its consideration of Bill C-93, An Act to implement certain provisions of the budget tabled in Parliament on February 18, 1997. (See Minutes of Proceedings dated April 16, 1997, Meeting No. 95, Issue No. 12).
The witnesses made statements and answered questions.
The Chair called Clause 2.
Clauses 2 to 81 carried by unanimous consent.
Clauses 81 to 87 carried on division.
Clauses 88 to 94 carried by unanimous consent.
Clause 1 carried.
The Title carried.
The Bill carried on division.
Ordered,--That the Chair report Bill C-93 to the House.
At 3:50 o'clock p.m., the Committee adjourned to the call of the Chair.
TUESDAY, APRIL 22, 1997
(Meeting No. 96)
The Evidence for this meeting is not available because it was held in camera.
(Meeting No. 96)
The Evidence for this meeting is not available because it was held in camera.
[Translation]
The Standing Committee on Finance met in camera at 10:05 o'clock a.m. this day, in Room 208, West Block, the Chair, Jim Peterson, presiding.
Members of the Committee present: Dianne Brushett, Jim Peterson, Gary Pillitteri, Roger Pomerleau, Brent St. Denis, Monte Solberg and Susan Whelan.
Acting Member present: Alex Shepherd for Ron Fewchuk.
In attendance: From the Research Branch of the Library of Parliament: Anthony Chapman and Peter Berg, Research Officers.
In accordance with its mandate under Standing Order 108(2), the Committee proceeded to study the Sub-committee interim report on international financial institutions. (See Minutes of Proceedings and Evidence dated June 5, 1996, Meeting No. 18, Issue No. 2).
The Committee examined the report adopted by its Sub-committee.
It was agreed,--That the report be concurred in as the Thirteen Report of the Committee.
Ordered,--That the report be tabled in the House as soon as possible.
At 10:08 o'clock a.m., the Committee adjourned to the call of the Chair.
Martine Bresson
Clerk of the Committee