Canadian Heritage committee  I'm aware of the question of income averaging, but I would respectfully submit that the question being asked is outside the scope of the mandate of the CRA. We deal with the implementation of the Income Tax Act as is. The Department of Finance would be in the best position to respond to your question, as the Department of Finance is responsible for developing and evaluating federal tax policy and amending the Income Tax Act.

Canadian Heritage committee  I'm not aware of a particular other segment that does income averaging.

Canadian Heritage committee  Over the past few years, other than the liaison officer service, we've also tried to consolidate information concerning artists and writers. We put out what we call an income tax folio for artists and writers that consolidates information about their tax obligations, the various deductions that are available and the various rules that affect artists and writers.

Canadian Heritage committee  I don't have those figures offhand, but I can get that information for you.

Canadian Heritage committee  Once again, I don't have the statistics, but I will try to get them for you.

Canadian Heritage committee  For certain deductions that go to artists, the CRA would know that. In terms of all artists and whether they're tagged or not, I do not know. I will have to get back to you on that.

Canadian Heritage committee  I do not have those figures available, but I will do my best to get them for you, if they're available.

Canadian Heritage committee  I do not have the data in terms of the number of audits and the value of the audits. What I can say is that, as the administrator, we try to carry out our compliance activities in order to help ensure that everyone, including artists, respects the law as intended by Parliament.

Canadian Heritage committee  I'm not as familiar with deductions in other jurisdictions. I am aware that Quebec has set up a type of income averaging, but I'm not in a position or it's not within my mandate to speak about whether something is better or worse. That would be a tax policy question.

Canadian Heritage committee  In terms of the deductions for artists who are self-employed, there are a number of them, and I'll list them: insurance premiums on musical instruments and equipment; the cost of repairs to equipment, including the costs of new reeds, strings, pads and accessories; legal and accounting fees; union dues and professional membership dues; an agent's or mandatary's commission; remuneration paid to a substitute or assistant; the cost of makeup and hair styling required for public appearances; publicity expenses consisting generally of the cost of having photographs taken and sent with a descriptive commentary to producers, presenters and the media, and including the cost of advertisements in publications; transportation expenses related to an engagement in a situation where the engagement is out of town, in which case boarding and lodging would also be allowed; large instrument or equipment that must be carried to the engagement; dress clothes that must be worn from a residence to the place of engagement, or one engagement follows another so closely in time that a car or taxi is the only means by which the engagement can be fulfilled; the cost of filming and recording performances where required for their preparation or presentation; telephone—

Canadian Heritage committee  I've gone through about half of it.

Canadian Heritage committee  Good afternoon, Mr. Chair. Thank you for the invitation to appear before you today. My name is Costa Dimitrakopoulos. I am the Director General of the Income Tax Rulings Directorate in the Legislative Policy and Regulatory Affairs Branch within the Canada Revenue Agency. I am pleased to answer any questions you may have regarding the general taxation of artists.