Thank you, Mr. Chairman. Mr. Chairman, that was not taken into consideration in developing this act because it had not to do with bankruptcy laws which are federal acts that govern us, Mr. Chairman. Thank you.
Debates of Oct. 8th, 1996
Topics
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Kelvin Ng Kitikmeot
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Vince Steen
Thank you, Mr. Ng. Are there any further questions or general comments? Mr. Krutko.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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David Krutko Mackenzie Delta
Have they looked at the implications under land claim settlements under they have certain corporate arrangements that they do have certain tax advantages and things that they have to follow in order to establish corporate identities under claims institutions. Have you looked at that aspect in regards to this bill?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Kelvin Ng Kitikmeot
Thank you Mr. Chairman. Mr. Chairman, any tax implications would come under the Federal Income Tax Act again, it would not be within the mandate of the Business Corporations Act. This is to do with the establishment of companies in the Northwest Territories. However, having said that I think recognizing that a lot aboriginal land claims groups have development corporations, business arms that are designed and established for the purpose of generating revenues and incomes for their beneficiaries or their shareholders. They would fall under the ... (inaudible) ... of the guidelines under this act Mr. Chairman.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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David Krutko Mackenzie Delta
Thank you Mr. Chairman. Yes, the question was, have you looked at the possible implications of these land claim corporations who are established through land claim agreements and registered under certain regulations that are established north of the Territories in regards to businesses. So it is the business corporations that they do have such as the, use the Gwich'in for instance, they have the development corporation, they have a construction company, basically also, they have different corporations they have managed to establish, but through their land claims agreement, there is certain arrangements that they can only participate in certain activities to take advantage of the tax advantages in their agreement so they have to establish corporations to basically the way it is spelled out in their legislation. So have you looked at the implication of claims corporations in the context of this business act?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Kelvin Ng Kitikmeot
Minister of Justice ...
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Vince Steen
Mr. Ng, it would help for the record I guess, if you would say or refer to your witness ...
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Kelvin Ng Kitikmeot
Thank you Mr. Chairman. Mr. Chairman, I will refer the question to Mr. MacDougall. Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
October 7th, 1996
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Macdougall
Thank you Mr. Chairman. Certainly under the land claims which have been settled to date, they do not tend to establish anything unique in terms of the corporate structure in respect of any corporations that are established under those claims. To the extent that they did so, the terms of the agreement being given effect to by paramount federal legislation would nevertheless prevail. And at the same time, many of those corporate entities are already incorporated under federal legislation. Thank you, Mr. Chairman.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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David Krutko Mackenzie Delta
My question was, have they looked at the claims corporation in the context of this legislation. That was the question.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Kelvin Ng Kitikmeot
Thank you Mr. Chairman. Mr. Chairman, I would say generally speaking, no, because of the fact that if a claim corporation were to establish a business entity for the specific purpose of generating income they would have to be registered and operate under the rules of the existing or sorry, under the proposed changes that are being enacted with this Business Corporations Act, Mr. Chairman. Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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David Krutko Mackenzie Delta
That is my, that is the point I was trying to make because the corporations under the claims institutions have certain advantages in regards to taxes just where they can not shelter profits, but be able to carry them off into their non-profit organizations that they have for charitable contributions and which they can use that which is spelled out in their land claim agreement.
But, does this, in any way, affect that ability, which is legislated federally to protect that which there may be an inconsistency between this legislation and the legislation that they presently follow or have the advantage of that they have been able to negotiate through claims agreements, because it is a tax business advantage that they do take into account when they consider moving these revenues around.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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David Krutko Mackenzie Delta
Yes, I believe, there was. The question was that the Minister stated that they have not really looked in the context of claims agreements but, I believe, there is some discrepancies between this legislation and the legislation of the land claim agreements are enacted under and there can be a conflict down the road. So, how do they work, find out ways to resolve those conflicts through this legislation? It is supposed to make things a lot easier, I do not think that could be the case because it could confuse the existing claims agreements which are in place today.
So have they looked at that? And, are they willing to look at that?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Kelvin Ng Kitikmeot
Thank you, Mr. Chairman. Mr. Chairman, this legislation does not deal with income tax law, that is a federal responsibility and that is why it was not considered in developing this Business Corporations Act, but having said that, if there were to be differences because of the fact of whatever interpretation of this act, any federal law would supersede any of our statutes, Mr. Chairman. Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Vince Steen
Thank you, Mr. Ng. General comments or questions from the Members? The Members agree that we go clause by clause?
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Some Hon. Members
We agree.