Wednesday, October 4, 2017

The Standing Senate Committee on National Finance has the honour to present its

TWENTY-FIRST REPORT

Your committee, which was authorized by the Senate on Tuesday, September 26, 2017, to study the Minister of Finance’s proposed changes to the Income Tax Act respecting the taxation of private corporations and the tax planning strategies involved, respectfully requests funds for the fiscal year ending March 31, 2018, and requests, for the purpose of such study, that it be empowered:

(a) to engage the services of such counsel, technical, clerical and other personnel as may be necessary;

(b)  to adjourn from place to place within Canada; and

(c) to travel inside Canada.

Pursuant to Chapter 3:06, section 2(1)(c) of the Senate Administrative Rules, the budget submitted to the Standing Committee on Internal Economy, Budgets and Administration and the report thereon of that committee are appended to this report.

Respectfully submitted,

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STANDING SENATE COMMITTEE ON NATIONAL FINANCE

Study on the Minister of Finance’s proposed changes to the Income Tax Act respecting the taxation of private corporations and the tax planning strategies involved

APPLICATION FOR BUDGET AUTHORIZATION FOR THE FISCAL YEAR ENDING MARCH 31, 2018

Extract from the Journals of the Senate, Tuesday, September 26, 2017:

The Senate resumed debate on the motion of the Honourable Senator Cools, seconded by the Honourable Senator Forest:

That the Standing Senate Committee on National Finance be authorized to examine and report on the Minister of Finance’s proposed changes to the Income Tax Act respecting the taxation of private corporations and the tax planning strategies involved, in particular:

• income sprinkling,

• holding passive investments inside a private corporation, and

• converting income into capital gains;

That the committee take particular note of the impact of the Government’s proposed changes on:

• incorporated small businesses and professionals,

• economic growth and government finances,

• the fairness of the taxation of different types of income, and

• other related matters; and

That the committee submit its final report to the Senate no later than November 30, 2017, and retain all powers necessary to publicize its findings for 180 days after presenting the final report.

The question being put on the motion, it was adopted, on division.

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SUMMARY OF BUDGET

The above budget was approved by the Standing Senate Committee on National Finance on Wednesday, September 27, 2017.

The undersigned or an alternate will be in attendance on the date that this budget is considered.

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APPENDIX (B) TO THE REPORT

Tuesday, October 3, 2017

The Standing Committee on Internal Economy, Budgets and Administration has examined the budget presented to it by the Standing Senate Committee on National Finance for the proposed expenditures of the said committee for the fiscal year ending March 31, 2018, for the purpose of its special study on the Minister of Finance’s proposed changes to the Income Tax Act respecting the taxation of private corporations and the tax planning strategies involved, as authorized by the Senate on Tuesday, September 26, 2017. The approved budget is as follows:

(includes funds for public hearings; includes funds for 15 senators to travel)

If charter air travel is used, the total cost of the charter should not exceed the amount budgeted per traveller for commercial airfare.

The budgets approved by the Senate for each travel activity are the maximum amount that can be spent for that activity;

Budgets normally include funds for the full membership of the committee to travel;

In general, a reduced delegation actually travels and efforts are made to find additional savings;

Therefore, actual expenditures are expected to be considerably below the approved budget, and they will be reported to the Senate;

Any surplus funds remaining at the conclusion of a travel activity will be clawed-back and can be made available for allocation to committees for other activities.

Respectfully submitted,