Thank you, Mr. Chair. The Standing Committee on Government Operations held a public hearing on Bill 14, An Act to Amend the Income Tax Act, on October 6, 2008.

The proposed amendments make the Income Tax Act consistent with similar provisions in the federal Income Tax Act. These amendments were recommended by the Canada Customs and Revenue Agency and are part of a nationwide updating exercise.

The Northwest Territories, Nunavut and New Brunswick are the three remaining jurisdictions needing to update their legislation. The affected provisions are related to charitable donations, medical expense tax credits, returns and assessments, withholding and payment, and to tax avoidance.

The amendment to the medical expense tax credit provisions will allow caregivers to claim more of the medical and disability related expenses incurred on behalf of their dependent relatives.

The proposed new section on general anti-avoidance rules will provide for the identification of tax avoidance transactions and permit the reversal of the tax benefits from these transactions.

The proposed changes to the NWT charitable donations credit will require a tax creditor who claims a federal donation to credit the same value for the purpose of the NWT donations credit.

This concludes the committee’s comments on Bill 14, An Act to Amend the Income Tax Act. Individual members of the committee may have comments or questions as we proceed.