Friday, February 7, 2003

    Mr. Pat Martin (Winnipeg Centre, NDP): Mr. Speaker, tax season is here again and the government has still done nothing to plug the outrageous tax loophole where businesses can deduct fines as a business expense.

    The minister said that most of the claims were denied but she knows full well that they succeed on appeal and that is why the Supreme Court said that Parliament must change the act to deal with the issue.

    Why will the government not amend the Income Tax Act to ensure that no one in the country will ever again get a tax deduction for breaking the law?

    Hon. John Manley (Deputy Prime Minister and Minister of Finance, Lib.): Mr. Speaker, as the hon. member acknowledges, this is a matter that has been dealt with by the courts in a way that reflects the fact that there may be circumstances that sometimes would result in the courts deeming that an expenditure of this nature is properly deductible. That is something that the courts have decided.

    We will be looking at other issues related to the Income Tax Act. When I table the budget on February 18 the hon. member will be enlightened concerning them.