Thursday, October 24, 2002 Mr. Pat Martin (Winnipeg Centre, NDP): Mr. Speaker, most Canadians agree that allowing businesses to deduct fines from their income taxes is simply bad public policy. Breaking the law should not be tax deductible and this could be achieved with a simple one line amendment to the Income Tax Act. Does the Minister of Finance agree that fines and penalties should not be considered business expenses for the purposes of income tax, and will he amend section 18 of the Income Tax Act accordingly? Hon. John Manley (Deputy Prime Minister and Minister of Finance, Lib.): Mr. Speaker, the member raises an important question. He will know that the Income Tax Act itself does not specifically permit this deduction, but it has been determined by the courts that in certain circumstances fines and penalties that have been incurred are expenses of doing business. I am prepared to review this as well as any other provision of the act. We would want to consult thoroughly before making a change that may create unforeseen consequences.
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