Thank you, Madam Speaker. Madam Speaker, I have a question I would like to direct to the Minister of Finance and it deals with the dreaded payroll tax. It has been about eight months now since the payroll tax was introduced to northerners in an attempt to get money from people who work in the north, not necessarily northerners themselves, but people who earn their money in the north. As a consequence, when filling out this huge net that the government has done in order to catch those dollars, many northerners are being affected to different degrees. Given that it has been several months since the tax was introduced, many suggestions have come forward to the Minister on how to improve this tax regime; suggestions from ultimate removal to raising the ceiling. The Minister said he needed time to do this. I wonder if, in eight months, they have managed to glean enough evidence to see how this system is working in order to be able to fine tune it? Has eight months been enough?
Question 98-12(5): Effectiveness Of Administration Of Payroll Tax
In the Legislative Assembly on February 15th, 1994. See this topic in context.
Question 98-12(5): Effectiveness Of Administration Of Payroll Tax
Revert Back To Item 5: Oral Questions
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The Speaker
Thank you. Minister of Finance, Mr. Pollard.
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John Pollard Hay River
Madam Speaker, I think I would have to report it is going fairly well, as far as we are concerned administratively. I don't get nearly as many complaints about the taxes as I used to. Some people were quite surprised to see that there is an enclosure in their tax returns this year where they can get a credit back. We have been analysing the tax. The federal government has now agreed to pay, as everyone knows. There is just one outstanding issue and that is with the Dene Nation. I reported that to the House last year. So I think it is working well. Some of the employers have not reported because they are only supposed to report once a year. So it will be at the 12 month stage where we will be able to analyze it, in its entirety. So we will need another four or five months yet, Madam Speaker, to do the analysis. Thank you.
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The Speaker
Thank you. Supplementary, Mr. Whitford.
Supplementary To Question 98-12(5): Effectiveness Of Administration Of Payroll Tax
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Tony Whitford Yellowknife South
Thank you, Madam Speaker. I am happy to hear that the Minister has not been receiving as many calls of complaint as I have. He can rest assured that I will pass on all the complaints that I get to him. There are a number of them. What I was after, Madam Speaker, was to see whether or not some of the loop holes that were built into this payroll tax are going to be analyzed and evaluated so there can be some closure. What I am referring to specifically are those people who contribute nothing to the payroll tax, yet receive plenty. I think the Minister is well aware of those corporations that are dodging through these loopholes. I wonder if that kind of thing has been looked at with the information they already have?
Supplementary To Question 98-12(5): Effectiveness Of Administration Of Payroll Tax
Question 98-12(5): Effectiveness Of Administration Of Payroll Tax
Revert Back To Item 5: Oral Questions
February 14th, 1994
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The Speaker
Thank you. Minister of Finance, Mr. Pollard.
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John Pollard Hay River
Madam Speaker, I will have a better idea in four or five months. I know what Mr. Whitford is referring to. Those people who are self-employed, draw by way of dividends, shareholders loans, et cetera, and they are not paying the payroll tax because they are not on the payroll. I regret to inform him that, to date, I have not been able to devise a way through the payroll tax whereby we could net those people. So if we are going to do anything, Madam Speaker, it is going to have to be done by another means. Thank you, Madam Speaker.
Further Return To Question 98-12(5): Effectiveness Of Administration Of Payroll Tax
Question 98-12(5): Effectiveness Of Administration Of Payroll Tax
Revert Back To Item 5: Oral Questions
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The Speaker
Thank you. Item 5, oral questions. The honourable Member for Kitikmeot, Mr. Ng.