Discussion · Government Orders
Elizabeth May Green
“The budget defines capital investments so broadly that it includes almost any spending, even advertising. No banker would accept that as a capital cost. I want the finance minister to explain this weird accounting rule.”
“Mr. Speaker, I have gone through the budget. I appreciate the opportunity, and I say to the hon. minister for heritage, good job on heritage, with creative work. My question is to the Minister of Finance. Is accounting now a creative industry? On page 352, we see that capital investments are defined broadly as including any expenditure, which is basically anything. This is the most bizarre description of a capital cost. The Minister of Finance might turn to his colleague on his left. If he were a banker and someone showed up and said, “I want this money for advertising because it is going to end up making more money for me, so therefore, it is a capital expenditure and I can write it off right now”, would any banker give them the money? Apparently, this deduction would.”
Mr. Speaker, I have gone through the budget. I appreciate the opportunity, and I say to the hon. minister for heritage, good job on heritage, with creative work. My question is to the Minister of Finance. Is accounting now a creative industry? On page 352, we see that capital investments are defined broadly as including any expenditure, which is basically anything. This is the most bizarre description of a capital cost. The Minister of Finance might turn to his colleague on his left. If he were a banker and someone showed up and said, “I want this money for advertising because it is going to end up making more money for me, so therefore, it is a capital expenditure and I can write it off right now”, would any banker give them the money? Apparently, this deduction would.