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December 2017

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December 2017 www.patkellymp.ca [email protected] 403-282-7980 @PatKellyMP @PatKelly_MP Dear Constituents, the Conservative caucus’s finance team, along with Shadow waiting, and under our new leader Andrew Scheer and his Finance Minister Hon. Pierre Poilievre (Carleton), Deputy Shadow Cabinet, we are confident that should Canadians After an enjoyable summer in Calgary, I have spent most of Shadow Finance Minister Tom Kmiec (Calgary Shepard), and lose confidence in the current Liberal government, we are my time since the last issue of House to House in Ottawa and Shadow Minister for Small Business Dan Albas (Central prepared to form a new government. many other parts of Canada carrying out new Parliamentary Okanagan Similkameen-Nicola) who are members of the The fall session of the House will continue for several more responsibilities and dealing with the government’s fall Standing Committee on Finance. weeks from the time of writing and I look forward to the legislative agenda. Since being named Shadow Minister for National Revenue, I winter break that will allow me to spend more time in This past August, the new leader of the Conservative Party, have travelled to five different provinces and territories and Calgary to meet with constituents. As always, constituents Andrew Scheer, named me to his Shadow Cabinet as the had numerous meetings to hear from Canadians. I have also are welcome to contact my office for assistance in dealing Shadow Minister for National Revenue. Andrew Scheer was held roundtable meetings here in Calgary Rocky Ridge. with a department or agency of the federal government, or an enthusiastic supporter of my Private Members’ motion Throughout these meetings, I listened very carefully to to share thoughts on federal government policy. (M-43) to establish an enforceable “duty of care” between Canadians concerned about taxation policy and how the As we are approaching the end of 2017, I wish you all a the Canada Revenue Agency and Canadian Tax Payers, and various policy decisions and announcements by the Liberal Merry Christmas and a Happy New Year. although the Liberal government voted against my motion, government since July will affect small businesses and the he and I will both continue to push for greater protection for jobs that depend on them. taxpayers. As Her Majesty’s Loyal Opposition, it is our responsibility to - As Shadow Minister for National Revenue, I am also part of present Canadians with an alternative government in Pat Kelly 150th Anniversary of the First Parliament Later that year the first Canadian national election was Conservative Party Leader Andrew Scheer pointed out in held, and on November 6, 1867 the first Canadian his speech how remarkable these past 150 years have This year Canadians have been celebrating Canada’s Parliament met for the first time in the House of been, and that Canadians can be tremendously proud of 150th Anniversary, because it was on July 1st 1867 that Commons in the Centre Block on Parliament Hill. On our great Country. The full text of his speech can be the British North America Act came into force, November 6, 2017 today’s party leaders gave speeches in found at www.patkellymp.ca. establishing Canada as a self -governing dominion with the House to mark the 150th anniversary of this event. four provinces and the vast Northwest Territories. HIGHLIGHTS Message to Constituents 1 150th Anniversary 1 Small Business Tax Changes 2 Finance Committee 2 Disability Tax Credit 2 Ottawa Activities 3 Survey: Resource Development 3 Calgary Activities 4 Small Business Tax Changes On July 18 the Liberal Government Calgary Rocky Ridge and across Canada. announced proposed changes to the I heard first-hand from business owners taxation of Canadian controlled private and from accounts how these changes corporations. The Minister of Finance would affect their businesses, and how stated that the proposed changes would the accusatory language employed by close “loopholes” that allow wealthy the Finance Minister was eroding the Canadians to avoid taxes by preventing confidence of businesses to invest or “income sprinkling” (the payment of expand in Canada. dividends from a corporation to related shareholders), dis-incentivizing the I would like to thank everyone who retention of passive investments, and wrote to me, called my office, or preventing the conversion of corporate attended a roundtable discussion on the income to capital gains. As proposed, the topic. As your representative, I place changes would have affected every tremendous value on the input I receive. private corporation in Canada, with On September 29, I wrote a letter to the significant consequences for thousands Finance Minister (see inset) and formally of small business owners. submitted a report based on the feedback I received in my office and from In September, as the implications of the many meetings I attended. The full these proposed changes became more report can be found at widely understood by the small business www.patkellymp.ca. community, opposition to them grew increasingly intense. Legal and While the government has signaled that accounting experts pointed out that the they may modify their proposal, and proposed changes would significantly have not yet tabled legislation, they increase taxes, jeopardize retirement appear committed to their three stated plans, and prevent the intergenerational goals. transfer of family businesses, especially for farm families. Throughout September and October, I The full report is available at: patkellymp.ca hosted several roundtable discussions in House of Commons Standing Committee on Finance (FINA) Roundtable discussions I hosted in Calgary Rocky Ridge were well attended and resulted in a helpful sharing of information and concerns. Thank you to everyone who took time to participate. Thank you to MP Stephanie Kusie (Calgary Midnapore) MP Dan Albas and I enjoyed meeting with members for inviting me to participate in a roundtable discussion of the North Saskatoon Business Association during with business owners in Chinatown. the pre-budget consultation tour. Pre-Budget Consultations: As the Shadow Minister for National points onto the public record about the anticipated negative 1% voting Revenue, I now frequently attend meetings of the House of consequences, whether intended or not, of the proposed interest in the Commons Standing Committee on Finance (FINA). I had the changes. Potential consequences could include the double bank and opportunity to travel with the committee in the week of October taxation of corporate dividends resulting in tax rates of 73% or almost no 1st as part of the pre-Budget consultations tour to Saskatoon, more for small business owners, the inability to transfer a family chance of Vancouver, Yellowknife, and Calgary. We heard from many business or farm from one generation to another, and difficult representation on its board. The committee also heard that the stakeholders about their priorities for the 2018-2019 Budget. questions about how the proposed “reasonableness test” would bank’s purpose is primarily a foreign policy tool of the People’s However, many stakeholders used their time before the be applied to corporate income divided between family Republic of China. It was also pointed out that the AIIB will, committee to express concerns about the proposed Liberal tax members. among other things, finance the construction of oil and gas increases on small businesses. Like the constituents in Calgary Bill C-63: In November the Committee’s attention shifted to a pipelines from Kazakhstan to China. Rocky Ridge who contacted my office or attended my roundtable review of Budget Implementation Act Bill C-63. Among the As part of the study on Bill C-63 the Finance Minister made meetings, many stakeholders across the country vigorously various items contained in Bill C-63 was the Government’s plan another appearance before FINA. During his appearance, he opposed the proposed changes and raised many of the same to contribute up to half a billion dollars to join the Asian refused to answer questions about when the federal budget concerns during our hearings. Infrastructure Investment Bank (AIIB). Some witnesses expressed would be balanced or to provide details of the modifications he Proposed tax changes: In addition to the pre-budget consultation, concerns that the AIIB does not meet international standards for plans to make to his earlier proposed changes to taxation of FINA set aside three days to study the proposed tax changes, transparency and questioned whether Canada would receive any passive investments by private corporations. including an appearance by the Finance Minister. This meeting benefits from joining the Bank. It was pointed out that Canadian Pre-budget consultations are continuing at the time of writing. gave my colleagues and me an opportunity to get a number of tax dollars would be at risk while Canada would have at most a Disability Tax Credit In October, my colleagues Pierre Poilievre, Dan Albas are similar reports of DTC denials for those suffering and I held a joint press conference with Diabetes from mental illness and autism. My Conservative Canada to draw public attention to Disability Tax Credit colleagues and I have raised the issue repeatedly in the (DTC) changes. Prior to May 2017, Type One diabetics House during Question Period. The Minister of National who have been certified by their physician as having Revenue and the Prime Minister have repeatedly stated met the medical criteria were approved for the DTC that there has been no change in policy or law regarding approximately 80% of the time. Since May 2017, 80% of the DTC, despite evidence to the contrary. My applications are being denied. Many other programs colleagues and I will continue to press the government and supports, including eligibility for a Registered on the DTC application process on behalf of vulnerable Disability Savings Account, are tied to the DTC.
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