CHRIS IN QUESTION PERIOD: Conservative tax scheme hurting some seniors

Ms. Chris Charlton (Hamilton Mountain, NDP):

Mr. Speaker, the government's much touted pension-splitting scheme is backfiring badly. A couple in my riding saved $2,000 on their income taxes, but as a result they had to pay $5,400 more. One requires nursing home care. Another will lose her GIS.

Seniors cannot afford high-priced accountants to save them from the government's false advertising and now they have to pay a penalty if they want to reverse the pension-splitting on their tax returns.

Will the government do the right thing and waive that penalty today for the 2007 tax year? Will it at least do that?

Hon. Jim Flaherty (Minister of Finance, CPC):

Mr. Speaker, I am not familiar with the particular case that the member references. If she wants to raise it with me I would be happy to look at it and see how it applies to the particular couple to whom she makes reference.

Having said that, pension-splitting is a major tax reform in Canada. It applies not only to seniors but to all pensioners. We are hearing about it, all of us, all across Canada, thousands of dollars in tax being saved by older people in Canada who can well use the money, and it is a stimulus to the economy.