Thank you, Mr. Chairman. I am pleased to introduce Bill 10, An Act to Amend the Income Tax Act. This bill addresses a number of changes to the NWT Income Tax Act to ensure it remains consistent with the federal Income Tax Act.

The Tax Collection Agreement between the Government of the Northwest Territories and Canada provides that we will keep the NWT act consistent with the federal act. Where different provisions exist, the Canada Revenue Agency could charge our government for the cost of administering those different provisions. There is no cost to the NWT for the Canada Revenue Agency to administer those parts of the NWT Income Tax Act that remain consistent with the federal act.

The changes that are being proposed in Bill 10 will have little or no effect on tax paid by NWT residents, but will make it easier for the Canada Revenue Agency to administer the act on our behalf.

The proposed legislation will clarify the foreign tax credit so that taxpayers will have to claim the full available federal tax credit before getting the NWT credit. Tax credits will also have to be calculated separately for each foreign country, and a minor change is being proposed to bring the foreign tax credit in line with the move several years ago to an NWT tax based on income and not on the federal tax.

Changes are being proposed to sections dealing with the tax on mutual fund corporations to correct an error in the current legislation.

The amount of education and tuition credit that can be transferred to an NWT parent or spouse by a student outside the NWT will be limited to the same amount that a student in the NWT can transfer. Under the existing legislation, there may be situations where a student outside the NWT could transfer more.

Several subsections which were necessary in 1999 because of division are proposed to be repealed as they are no longer necessary.

It is proposed to change the definition of income for the NWT child benefit to include income of common-law spouses. This will bring the definition in line with the treatment under the federal act.

The amendment would change the name of federal legislation referenced in the NWT act from the Unemployment Insurance Act (Canada) to the Employment Insurance Act (Canada) because the federal government changed the name of this legislation several years ago.

Similarly, it is proposed to amend the act to reflect the change in the name of the federal legislation from the Immigration Act (Canada) to the Immigration and Refugee Protection Act (Canada) and to include persons previously determined to be members of a class defined in the humanitarian designated class's regulations under the Immigration Act (Canada).

Section 7 dealing with income averaging for farmers and fishermen would be repealed to reflect the repeal of mirroring provisions in the federal act. Few, if any, of the small numbers of farmers and fishermen in the NWT were able to take advantage of this provision, and the section has not been in force nationally for a number of years since the federal provisions have been repealed.

Finally, parts (c) and (d) of the French translation of section 3.1 defining a qualified dependant for the child benefit will be amended to correct the inclusion of two parts numbered (c) in the act.

At the appropriate time, I will be proposing an amendment to the bill in order to correct a minor drafting error.

That concludes my opening remarks. Thank you, Mr. Chairman.