Restitution Discussion Group Archives
| Sender: |
Lionel Smith |
| Date: |
Tue, 29 Jan 2002 14:17:05 -0500 |
| Re: |
The biggest mistaken payment ever? |
Talk about fiscal chaos ... from today's online Globe
and Mail, www.globeandmail.com
:
===== By OLIVER MOORE The federal government has paid four provinces around
$3.3-billion too much due an accounting error that could date back 30
years, it was revealed Tuesday. Government ministers speaking in Ottawa
following cabinet meetings sought to downplay the importance of the error.
"These adjustments are made regularly. Sometimes we have
overpayment, sometimes we have underpayment," Prime Minister Jean Chrétien
told reporters, adding that the problem does seem "bigger" than usual
this time.
National Revenue Minister Elinor Caplan said the important
thing to note is that the error has been fixed "on a go-forward basis."
Ms. Caplan ascribed the problem to an accounting practice
dating to 1972, and that investigators are now going back "as best we
can" through decades of records.
"Provincial legislation requires that we deduct from
the provincial revenues the refund for capital-gains for mutual funds,
and that deduction was actually taken from federal funds, that refund,
and therefore resulted in overpayment."
The problem is related to government-to-government transfers
and does not affect individual taxpayers or mutual fund trusts or their
investors, she added.
Finding the problem "at this time was a big surprise
for everyone, especially me on my first day," said Ms. Caplan, who served
as Immigration and Citizenship Minister until Mr. Chrétien's recent cabinet
shuffle.
No decision can be made on a mechanism for retrieving
the money until all the facts are known, Ms. Caplan said. The government
has invited the provincial auditors of the four provinces involved - Ontario,
Alberta, Manitoba and B.C. - to assist the federal auditor-general in
her investigation. "The problem ... does not affect individual taxpayers"
... hmmm.
Lionel
Provinces overpaid by $3.3-billion
Globe and Mail Update
======
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