Standing Committee on Finance (FINA)

Craig Cantin — Mon, 13 Feb 2012 18:40:36 +0000

The House Standing Committee on Finance split its time this week between its study on Tax Incentives for Charitable Donations and the start of its study on Bill C-25, which provides the legislation for the creation of Pooled Retirement Pension Plans, or PRPP’s. Regarding the study on tax incentives, witnesses from the charitable industry such as Big Brothers, Big Sisters, the David Suzuki Foundation, the Canadian Council of Christian Charities and others gave testimonies, suggestions, and answered MP questions. While some witnesses expressed reservations, many others fully supported the adoption of the Stretch Tax Credit proposed by Imagine Canada, which would increase the eligible tax credit available for those who donated more over time. Furthermore, all witnesses unanimously favored capital gains tax exemptions to be extended to gifts of privately held securities and real estate, as they are currently only applied to the donation of publicly listed securities. However, the committee also heard from witnesses that any tinkering with tax policy would have limited results, and that MP’s should use their public platform to attempt to bring about a true change in culture regarding Canadians willingness to engage the civic core.

To start off its study on Bill C-25, Minister of State for Finance Ted Menzies testified and answered questions from MPs on the proposed legislation. The minister focused on the low administrative and financial burdens PRPP’s impose on small businesses, as well as the fact provincial governments have privately expressed support, as key benefits to the plan. However, opposition members pressed the Minister on why he did not pursue more options with the framework of the Canadian Pension Plan, which would guarantee savings amongst all Canadians. There was some debate between the government and the opposition as to whether the competitions between financial institutions to offer PRPP’s would drive the administrative costs down below the levels of the CPP. When the Committee resumes after the coming break week, it will hear from other industry stakeholders regarding Bill C-25.

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Standing Committee on Finance (FINA)

Craig Cantin — Mon, 06 Feb 2012 20:52:56 +0000

This week the House Standing Committee on Finance continued its study on Tax Incentives for Charitable Donations, and heard numerous testimonies from a variety of stakeholders including Imagine Canada, United Way Canada, the Canadian Taxpayers Association, the Canadian Association of Gift Planners, the Canadian Land Trust Alliance and numerous others. The Committee has been hearing from witnesses on suggestions for making the tax regime in Canada more favorable to donors and charities and how government policy can attract more donations to the charitable sector. A main proposition that was considered is the ‘Stretch Tax Credit’ proposed by Imagine Canada, which would change current the tax incentive system by further rewarding donors who increased their donation amount annually with a bonus 10% tax credit. By challenging Canadians to give more, charities hoped to further involve Canadians with charities. Other suggestions included removing the capital gains tax on shares of privately held companies that are donated to charity, as well as removing the tax on real estate donated to charities, both of which are not counted as gifts eligible for tax credits upon donation under the Income Tax Act. Witnesses described the current funding squeeze being felt by Canadian charities, the shrinking and fatigued donor base in Canada, and the continuing need to get young people involved in the charitable sector. Meetings continue next week with more witnesses from the charitable sector scheduled to appear.

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Capital Gains Tax Archives | Elizabeth May

Standing Committee on Finance (FINA)

Standing Committee on Finance (FINA)