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?
Debates of April 2nd, 1993
Topics
Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1464
Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1464
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
Bill 27: Payroll Tax Act, 1993
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 1464
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
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
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
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
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
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
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 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
Page 1465
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
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
April 2nd, 1993
Page 1465
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 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
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?