Mr. Chairman, as I mentioned before, companies have the ability to have different years than the calendar year. This is based on a calendar year. So, if a company's fiscal year doesn't coincide with the calendar year, then they have to have two notional tax years and that is the term that is used. Thank you, Mr. Chairman.
Debates of March 25th, 1994
Topics
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 864
John Pollard Hay River
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 864
The Chair Brian Lewis
Thank you, Mr. Pollard.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 864
Samuel Gargan Deh Cho
So, if I'm clear, that doesn't mean the corporate tax is not going to be levied for the year before December 31, 1993? January 1 is when this corporate tax comes into play?
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 864
The Chair Brian Lewis
Can you confirm that, Mr. Pollard?
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 864
John Pollard Hay River
Mr. Chairman, I understand what the Member is getting at. If I can give an example, if somebody's fiscal year for a corporation who is going to be paying this tax started December 1 last year, then there would be two tax years, two notional years. The first one being December, which would be taxed at the 12 per cent, then effective January 1, they would start paying the 14 per cent. So there would be two notional tax years. And, yes, the Member is correct, this will not be enforced prior to January 1 of this calendar year. Thank you, Mr. Chairman.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 864
The Chair Brian Lewis
Are we concluded general comments? Clause by clause?
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 864
Some Hon. Members
Agreed.
---Agreed Clause By Clause
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
Clause 1.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
Some Hon. Members
Agreed.
---Agreed
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
Clause 2.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
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Some Hon. Members
Agreed.
---Agreed
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
Clause 3.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
March 24th, 1994
Page 865
Some Hon. Members
Agreed.
---Agreed
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
Clause 4.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
Some Hon. Members
Agreed.
---Agreed
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
Clause 5.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
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Some Hon. Members
Agreed.
---Agreed
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
Bill as a whole.
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
Some Hon. Members
Agreed.
---Agreed
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
Does the committee agree that Bill 15 is read for third reading?
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
Some Hon. Members
Agreed.
---Agreed
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
The bill is now ready for third reading. Are you ready to go to the next bill?
Bill 15: An Act To Amend The Income Tax Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
Some Hon. Members
Agreed.
---Agreed
Bill 17: Loan Authorization Act, 1994-95
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 865
The Chair Brian Lewis
We're going to Bill 17, Loan Authorization Act, 1994-95. Mr. Pollard, do you have any opening remarks on this bill?
Introductory Remarks
Bill 17: Loan Authorization Act, 1994-95
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
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John Pollard Hay River
Thank you, Mr. Chairman. The purpose of the Loan Authorization Act is to authorize the government to make loans to municipalities and to boards of education. It is a requirement of the Northwest Territories Act that the lending of government funds be authorized by the Legislative Assembly.
Mr. Chairman, this act is an annual act which for the 1994-95 fiscal year will provide the authority to lend up to $8 million. Of this amount, Mr. Chairman, $7 million applies to municipalities and $1 million to boards of education. The authorization for loans to municipalities of $7 million is $1 million less than was authorized in 1993-94.
The municipalities that have identified a requirement for loans include Yellowknife, Norman Wells, Fort Smith, Fort Simpson and Hay River. The municipal purposes for which these loans will be used include the repair of existing municipal property, a recreation complex and limited lot development.
The board of education that has identified a loan requirement is Yellowknife Education District No. 2.
In view of the recent difficulties experienced by two municipalities in repaying debentures, the departments of Municipal and Community Affairs and Finance have carefully reviewed the financial statements of the municipalities in question to ensure that they are financially capable of servicing these loans. There have been no problems with these earlier loans made to boards of education, and financial statements for the board of education covered under this act, have been reviewed. Thank you, Mr. Chairman.