Debates of April 2nd, 1993

This is page numbers 1409 - 1492 of the Hansard for the 12th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was tax.

Topics

Members Present
Item 1: Prayer
Eastern Arctic Bulk Fuel Contract
Access To Government Information
Legislative Action Paper On The Workers' Compensation Act
Community Teacher Education Programs
Access To Government Information
Charter Community: Deline
Support For Heritage Resources And Programs
Cancellation Of Tree Of Peace Kindergarten Program
Panarctic Dumping Of Waste In Arctic Ocean
Social Services Agreement With Town Of Iqaluit
Agreement With Rae-edzo School Society
Dumping Of Waste Into Ocean
Lack Of Action To Improve NWT Economy
Opposing Opening Of Uranium Mines In The Keewatin
Traditional Dene Drums
Support From Constituents
Appreciation Of Peter Gzowski
Appreciation Of Constituents
Protection Of Transportation Artifacts
Final Day Of Session
Item 4: Returns To Oral Questions
Provision Of Consultant's Report
Response To Question Regarding Ocean Dumping
Accident At Royal Oak Mine
Funding For Tree Of Peace Kindergarten
Status Of Mine Safety Act Review Committee
Communication Difficulties Between Education And Tree Of Peace
Disposal Of Panarctic Waste
Delegation Of Authority To Rae-edzo School Society
Broken Narwhal Tusk On Mace
Nuclear Waste Disposal Into Arctic Ocean
Expo 1992 Audit
Development Of Memorandum Of Understanding
Economic Development Strategy
Lack Of Action To Stimulate Economy
Minister's Statement On Student Financial Assistance
Professional Programs For Aboriginal People
Royal Oak Mine Occupational Health And Safety Committee
Student Financial Assistance
Financial Controls At Expo 1992
Policy On Disposal Of Scrap Metals
Legal Authority Of Rae-edzo School Society
Government's Commitment To Economic Strategy
Eastern Arctic Bulk Fuel Contract
Meeting With Federal Minister Of Housing
Options For Increasing Revenue
Viability Of Churchill Railhead
Payroll Tax In Other Jurisdictions
Keewatin Region Transportation Committee
Consultation With Kitikmeot Re Environmental Issues
Return To Written Question 35-12(3): Contract For Revamping Of Public Health System
Item 8: Replies To Opening Address
Committee Report 20-12(3): Standing Committee On Finance Report On Bill 27, Payroll Tax Act And Bill 26, An Act To Amend The Income Tax Act, No. 2
Item 11: Reports Of Committees On The Review Of Bills
Item 12: Tabling Of Documents
Changes To Student Financial Assistance Program
Motion To Move Minister's Statement 88-12(3): To Committee Of The Whole
Appointment Of Alternate Members To The Special Committee On Health And Social Services
Legislative Action Paper On Workers' Compensation Act To Standing Committee On Legislation
Tabled Documents 133-12(3) And 134-12(3) To Committee Of The Whole
Proposed Amendments To Maintenance Act And Domestic Relations Act Referred To The Standing Committee On Legislation
Proposed Bill, Personal Property Security Act
Cities, Towns And Villages Act, Hamlets Act, And Charter Communities Act Referred To The Standing Committee On Legislation
Appointment Of Alternate Members To The Special Committee On Health And Social Services
Legislative Action Paper On Workers' Compensation Act To Standing Committee On Legislation
Tabled Documents 133-12(3) And 134-12(3) To Committee Of The Whole
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Committee Report 20-12(3): Standing Committee On Finance Report On Bill 27, Payroll Tax Act And Bill 26, An Act To Amend The Income Tax Act, No. 2
Committee Motion To Move Bill 26 And Bill 27 Into Committee Of The Whole
To Adopt Recommendation 2
Bill 27: Payroll Tax Act, 1993
Bill 26: An Act To Amend The Income Tax Act, No. 2
Committee Report 10-12(3): Report On Tabled Document 21-12(3): Payroll Tax Act
Tabled Document 133-12(3): Evaluation Of The Financial Operations Of Expo '92 Revolving Fund And Tabled Document 134-12(3): Aurorales Expo '92 Revolving Fund Account Balance Sheet, March 19, 1993
Changes To Student Financial Assistance Program
Tabled Document 2-12(3): The Justice House - Report Of The Special Advisor On Gender Equality
Tabled Document 19-12(3): 1992 Master Plan For Corrections Service Division
Item 19: Report Of Committee Of The Whole
Bill 25: Supplementary Appropriation Act, No. 1, 1993-94
Bill 26: An Act To Amend The Income Tax Act, No. 2
Bill 27: Payroll Tax Act
Revert Back To Item 12: Tabling Of Documents
Assent To Bills

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

Henry Zoe

Henry Zoe North Slave

Mr. Chairman, this is an employees' tax. Why would the employer be assessed? I realize they have to verify the amount of money they are withholding from employees, but as an individual who is paying the tax, should there be a mechanism in place where we get to see the assessment of our individual taxes we have remitted?

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

The Chair

The Chair Tony Whitford

Thank you, Mr. Zoe. Minister Pollard.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

John Pollard Hay River

Mr. Chairman, it would be the responsibility of companies to inform their employees by way of their tax slips or however they inform their employees that the deductions made from their salaries, of the amount of money they have paid with regard to the payroll tax. Thank you, Mr. Chairman.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

The Chair

The Chair Tony Whitford

Thank you, Mr. Pollard. Mr. Zoe.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

Henry Zoe

Henry Zoe North Slave

Mr. Chairman, as an individual taxpayer, then what happens if there is a discrepancy between the knowledge of the employee and what the employer has remitted on his behalf? What if there is an error? How would one rectify that situation?

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

The Chair

The Chair Tony Whitford

Thank you, Mr. Zoe. Minister Pollard.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

John Pollard Hay River

Mr. Chairman, there are allowances in the act for overpayments. If an employee overpays, then there are allowances in the act for the employer to reimburse that employee. By the same token, if there is an underpayment, there are also allowances in the act to allow an employer to redeem that tax from the person who should have paid it. Under section 17(1), Mr. Chairman, there is the ability for an employee to apply for an application for a refund, Mr. Chairman. So, there is a right of appeal for an employee who believes that he or she has paid too much payroll tax. Thank you.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

The Chair

The Chair Tony Whitford

Thank you, Mr. Minister. General comments. Mr. Koe.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

Fred Koe Inuvik

Thank you, Mr. Chairman. Can the Minister give me his current projection on the amount of revenues you are estimating from this tax for 1993-94?

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

The Chair

The Chair Tony Whitford

Thank you, Mr. Koe. Mr. Minister.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1464

John Pollard Hay River

Thank you, Mr. Chairman. Mr. Chairman, with July 1 implementation, $8.2 million. Thank you, Mr. Chairman.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

The Chair

The Chair Tony Whitford

Thank you, Mr. Minister. Mr. Koe.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

Fred Koe Inuvik

It is my understanding there will be no tax credit come into play until April 1, 1994-95 fiscal year. So there will be no costs incurred in terms of rebates, but what would be the cost in terms of administration of the payroll tax? What would the cost on the $8.2 million?

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

The Chair

The Chair Tony Whitford

Thank you, Mr. Koe. Minister Pollard.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

John Pollard Hay River

Thank you, Mr. Chairman. Mr. Chairman, as Members will recall earlier this week I introduced a motion to reduce the Department of Finance budget by some $322,000 and $100,000 of that was a one-time capital cost and $222,000 was for the O and M to administer the tax. So, in a fiscal year for administration, would be $222,000, Mr. Chairman. Thank you.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

The Chair

The Chair Tony Whitford

Thank you, Mr. Minister. General comments. Mr. Koe.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

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Fred Koe Inuvik

So roughly we are going to have a revenue item of a new of $7.9 million, if the $322,000 is the only cost against the payroll tax. Am I close?

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

April 2nd, 1993

Page 1465

The Chair

The Chair Tony Whitford

Thank you, Mr. Koe. Minister Pollard.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

John Pollard Hay River

Mr. Chairman, the Member is indeed close. Thank you.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

The Chair

The Chair Tony Whitford

Thank you. Mr. Koe.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

Fred Koe Inuvik

So, in 1993-94, which is the intended time that this payroll tax would be introduced, we are playing a numbers game which then allows the Minister and Cabinet to achieve their balanced budget. My concern is what happens in 1994-95 and future years when we have to give out rebates. I would like to get an estimate, April 1, 1994, when the first rebate claims come in, what is the estimated cost of all of the rebates and what is the net, after rebates are paid out, in 1994-95?

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

The Chair

The Chair Tony Whitford

Thank you, Mr. Koe. Mr. Pollard.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Pollard Hay River

Mr. Chairman, the rebates that will be paid out in 1994 are estimated to be $9.7 million.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

The Chair

The Chair Tony Whitford

Thank you, Mr. Pollard. Mr. Koe.

Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1465

Fred Koe Inuvik

What is the estimated payroll tax for that year?