Budget Implementation Act, 2024, No. 1  In budget 2024, the government proposes extending five more weeks of employment insurance payouts to seasonal workers for another two years. While this does fall short of returning Prince Edward Island to one EI zone, it does extend much-needed relief to the almost 3,000 seasonal workers on P.E.I. Another measure in the budget is freezing the Confederation Bridge tolls and maintaining ferry fees to Nova Scotia until 2026.

Bill C-69 An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024

Short Title Short title 1 This Act may be cited as the Budget Implementation Act, 2024, No. 1 . PART 1 Amendments to the Income Tax Act and Other Legislation R.S., c. 1 (5th Supp.) Income Tax Act 2 (1) The description of B in subsection 6(2) of the French version of the Income Tax Act is replaced by the following: B le produit obtenu en multipliant 1 667 par le quotient obtenu en divisant le nombre total de jours ci-dessus par 30, si le quotient ainsi obtenu n’est pas un nombre entier et qu’il est supérieur à un, en l’arrondissant au nombre entier le plus proche ou, si ce quotient est équidistant de deux nombres entiers consécutifs, en l’arrondissant au plus petit de ces deux nombres; (2) The description of D in subsection 6(2) of the French version of the Act is replaced by the following: D le nombre obtenu en divisant par 30 le nombre total de jours ci-dessus où l’employeur est propriétaire de l’automobile, si le quotient ainsi obtenu n’est pas un nombre entier et qu’il est supérieur à un, en l’arrondissant au nombre entier le plus proche ou, si ce quotient est équidistant de deux nombres entiers consécutifs, en l’arrondissant au plus petit de ces deux nombres; 3 (1) Subsection 7(1.11) of the Act is replaced by the following: Non-arm’s length relationship with trusts (1.11) For the purposes of this section, a mutual fund trust is deemed not to deal at arm’s length with a corporation only if (a) the trust controls the corporation; or (b) the corporation holds securities that give the corporation not less than 50% of the votes that could be cast at a meeting of the unitholders of the trust. (2) The portion of subsection 7(1.31) of the Act before paragraph (a) is replaced by the following: Disposition of newly acquired security (1.31) Where a taxpayer acquires at a particular time a particular security under an agreement referred to in subsection (1) — or acquires the particular security as consideration for the disposition of rights under the agreement — and, on a day that is no later than 30 days after the day that includes the particular time, the taxpayer disposes of a security that is identical to the particular security, the particular security is deemed to be the security that is so disposed of if (3) Subsection (1) applies to rights exercised or disposed of after 2004 under agreements to sell or issue securities made after 2002. (4) Subsection (2) is deemed to have come into force on January 1, 2023. 4 (1) Subparagraph 8(1)(f)(vi) of the French version of the Act is replaced by the following: (vi) des dépenses qui ne seraient pas, en vertu de l’alinéa 18(1)l), déductibles dans le calcul du revenu du contribuable pour l’année, si son emploi consistait en une entreprise exploitée par lui; (2) The portion of paragraph 8(1)(g) of the French version of the Act after subparagraph (ii) is replaced by the following: les sommes qu’il a ainsi déboursées au cours de l’année, dans la mesure où il n’a pas été remboursé et n’a pas le droit d’être remboursé à cet égard; (3) The portion of paragraph 8(1)(i) of the French version of the Act before subparagraph (i) is replaced by the following: Cotisations et autres dépenses liées à l’exercice de fonctions i) dans la mesure où il n’a pas été remboursé et n’a pas le droit d’être remboursé à cet égard , les sommes payées par le contribuable au cours de l’année, ou les sommes payées pour son compte au cours de l’année si elles sont à inclure dans son revenu pour l’année, au titre : 5 (1) Paragraph 12(1)(t) of the Act is replaced by the following: Investment tax credit (t) the amount deducted under subsection 127(5) or (6) or 127.48(3) in respect of a property acquired or an expenditure made in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it was not included in computing the taxpayer’s income for a preceding taxation year under this paragraph or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e), subparagraph 53(2)(c)(vi) or (viii.1) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6); (2) Paragraph 12(1)(t) of the Act, as enacted by subsection (1), is replaced by the following: Investment tax credit (t) the amount deducted under subsection 127(5) or (6), 127.48(3) or 127.49(6) in respect of a property acquired or an expenditure made in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it was not included in computing the taxpayer’s income for a preceding taxation year under this paragraph or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e), subparagraph 53(2)(c)(vi), (viii.1) or (viii.2) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6); (3) Paragraph 12(1)‍(x) of the Act is amended by striking out “and” at the end of subparagraph (vii), by adding “and” at the end of subparagraph (viii) and by adding the following after subparagraph (viii): (ix) was not received by the taxpayer as an excluded loan; (4) Subsection 12(11) of the Act is amended by adding the following in alphabetical order: excluded loan  means a loan, other than a forgivable loan, evidenced in writing (a) that is from a payer that is (i) a government, municipality or other public authority in Canada, or (ii) a person resident in Canada or Canadian partnership, if it is reasonable to conclude that the payer would not have made the loan but for the direct or indirect receipt by the payer of amounts from a government, municipality or other public authority in Canada; (b) for which, at the time the loan was made, bona fide arrangements were made for repayment of the loan within a reasonable time; and (c) the funds from which were used for the purpose of earning income from a business or property. ( prêt exclu ) (5) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023. (6) Subsection (2) is deemed to have come into force on January 1, 2024. (7) Subsections (3) and (4) are deemed to have come into force on January 1, 2020, and apply to loans made after December 31, 2019. 6 (1) Section 13 of the Act is amended by adding the following after subsection (4): COVID — time not counted (4.01) For the purposes of subparagraph (4)(c)(ii), the period beginning on March 15, 2020 and ending on March 12, 2022 is not to be counted. (2) The portion of subsection 13(7.1) of the Act before paragraph (a) is replaced by the following: Deemed capital cost of certain property (7.1) For the purposes of this Act, where section 80 applied to reduce the capital cost to a taxpayer of a depreciable property or a taxpayer deducted an amount under subsection 127(5) or (6) or 127.48(3) in respect of a depreciable property or received or is entitled to receive assistance from a government, municipality or other public authority in respect of, or for the acquisition of, depreciable property, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance other than (3) The portion of subsection 13(7.1) of the Act before paragraph (a), as enacted by subsection (2), is replaced by the following: Deemed capital cost of certain property (7.1) For the purposes of this Act, where section 80 applied to reduce the capital cost to a taxpayer of a depreciable property or a taxpayer deducted an amount under subsection 127(5) or (6), 127.48(3) or 127.49(6) in respect of a depreciable property or received or is entitled to receive assistance from a government, municipality or other public authority in respect of, or for the acquisition of, depreciable property, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance other than (4) Subsection 13(7.1) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (b.1) and by adding the following after paragraph (b.1): (b.2) an amount received as an excluded loan as defined in subsection 12(11), (5) Paragraph 13(7.1)(e) of the Act is replaced by the following: (e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6) or 127.48(3) by the taxpayer for a taxation year ending before the particular time, (6) Paragraph 13(7.1)(e) of the Act, as enacted by subsection (5), is replaced by the following: (e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6), 127.48(3) or 127.49(6) by the taxpayer for a taxation year ending before the particular time, (7) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Act is replaced by the following: I is the total of all amounts deducted under subsection 127(5) or (6) or 127.48(3) , in respect of a depreciable property of the class of the taxpayer, in computing the taxpayer’s tax payable for a taxation year ending before that time and subsequent to the disposition of that property by the taxpayer, (8) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Act, as enacted by subsection (7), is replaced by the following: I is the total of all amounts deducted under subsection 127(5) or (6), 127.48(3) or 127.49(6) , in respect of a depreciable property of the class of the taxpayer, in computing the taxpayer’s tax payable for a taxation year ending before that time and subsequent to the disposition of that property by the taxpayer, (9) The portion of paragraph 13(24)(a) of the Act before subparagraph (i) is replaced by the following: (a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.1 and 127.48 , the property is deemed (10) The portion of paragraph 13(24)(a) of the Act before subparagraph (i), as enacted by subsection (9), is replaced by the following: (a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.1, 127.48 and 127.49 , the property is deemed (11) Subsection (1) is deemed to have come into force on March 12, 2020. (12) Subsections (2), (5), (7) and (9) are deemed to have come into force immediately after the expiration of March 27, 2023. (13) Subsection (4) is deemed to have come into force on January 1, 2020, and applies to loans made after December 31, 2019. (14) Subsections (3), (6), (8) and (10) are deemed to have come into force on January 1, 2024. 7 Clause 39(1)(c)(iv)(C) of the Act is replaced by the following: (C) a corporation referred to in section 6 of the Winding-up and Restructuring Act that was insolvent (within the meaning of that Act) and was a small business corporation at the time a winding-up order under that Act was made in respect of the corporation, 8 (1) Section 44 of the Act is amended by adding the following after subsection (1): COVID — time not counted (1.01) For the purposes of paragraphs (1)(c) and (d), the period beginning on March 15, 2020 and ending on March 12, 2022 is not to be counted. (2) Subsection (1) is deemed to have come into force on March 12, 2020. 9 Subparagraph 50(1)(b)(ii) of the Act is replaced by the following: (ii) the corporation is a corporation referred to in section 6 of the Winding-up and Restructuring Act that is insolvent (within the meaning of that Act) and in respect of which a winding-up order under that Act has been made in the year, or 10 (1) Subparagraph 53(1)(e)(xiii) of the Act is replaced by the following: (xiii) any amount required by subsection 127(30) or section 127.48 to be added to the taxpayer’s tax otherwise payable under this Part for a taxation year that ended before that time in respect of the interest in the partnership ; (2) Subparagraph 53(1)(e)(xiii) of the Act, as enacted by subsection (1), is replaced by the following: (xiii) any amount required by subsection 127(30), section 127.48 or subsection 127.49(17) to be added to the taxpayer’s tax otherwise payable under this Part for a taxation year that ended before that time in respect of the interest in the partnership; (3) Paragraph 53(2)(c) of the Act is amended by adding the following after subparagraph (viii): (viii.1) an amount equal to that portion of all amounts deemed deducted under subsection 127.48(3) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer under subsection 127.48(12), (4) Paragraph 53(2)(c) of the Act, as modified by subsection (3), is amended by adding the following after subparagraph (viii.1): (viii.2) an amount equal to that portion of all amounts deemed deducted under subsection 127.49(6) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer under subsection 127.49(8), (5) Subsections (1) and (3) are deemed to have come into force immediately after the expiration of March 27, 2023. (6) Subsections (2) and (4) are deemed to have come into force on January 1, 2024. 11 (1) Paragraph (b) of the description of B of the definition exemption threshold in section 54 of the English version of the Act is replaced by the following: (b) the exemption threshold of the taxpayer in respect of the flow-through share class of property immediately before that earlier time; (2) The portion of paragraph (b) of the definition fresh-start date in section 54 of the English version of the Act before subparagraph (i) is replaced by the following: (b) in the case of any other property that is included in the flow-through share class of property, the day that is the later of 12 Subparagraph 56(1)(a)(iv) of the Act is replaced by the following: (iv) a benefit under Part I, VII.1, VIII or VIII.1 of the Employment Insurance Act , 13 (1) Subparagraph 60(j)(iv) of the Act is amended by striking out “or” at the end of clause (A), by adding “or” at the end of clause (B) and by adding the following after clause (B): (C) to or under a registered retirement income fund under which the taxpayer is the annuitant , as defined in subsection 146.3(1), other than the portion thereof designated for a taxation year for the purposes of paragraph (l), (2) The portion of paragraph 60(n) of the Act before subparagraph (i) is replaced by the following: Repayment of pension or benefits (n) any amount paid by the taxpayer in the year as a repayment (otherwise than because of Part VII of the Employment Insurance Act or section 8 of the Canada Recovery Benefits Act ) of any of the following amounts to the extent that the amount was included in computing the taxpayer’s income, and not deducted in computing the taxpayer’s taxable income, for the year or for a preceding taxation year, namely, (3) Section 60 of the Act is amended by adding the following after paragraph (n.1): Amounts repaid in subsequent years (n.2) any amount paid by the taxpayer in a year (in this paragraph referred to as the “subsequent year”) that is after the year as a repayment of an amount that was included in computing the taxpayer’s income for the year under any of subparagraphs 56(1)(a)(i), (ii), (iv), (vi) or (vii) or paragraph 56(1)(r), to the extent that the amount paid (i) exceeds the taxpayer’s taxable income for the subsequent year (determined without reference to paragraphs (n), (n.1) and (v.1)), and (ii) is not deducted in computing the taxpayer’s taxable income for any other taxation year; (4) Paragraph 60(r) of the Act is repealed. (5) Paragraph 60(v.1) of the Act is replaced by the following: EI benefit repayment (v.1) any benefit repayment payable by the taxpayer under Part VII of the Employment Insurance Act on or before April 30 of the following year, to the extent that the amount was not deductible in computing the taxpayer’s income for any preceding taxation year; (6) Subsection (1) is deemed to have come into force on August 4, 2023. (7) Subsection (3) applies to the 2019 and subsequent taxation years. 14 (1) Paragraph 66(12.73)(e) of the Act is replaced by the following: (e) if a corporation fails to file the statement within the time required or fails in the statement filed to apply the excess fully to reduce one or more purported renunciations, the Minister may at any time reduce the total amount purported to be renounced by the corporation to one or more persons by the amount of the unapplied excess in which case, except for the purpose of Part XII.6, the amount purported to have been so renounced to a person is deemed, after that time, always to have been reduced by the portion of the unapplied excess allocated by the Minister in respect of that person. (2) Subsection (1) is deemed to have come into force on August 4, 2023. 15 (1) Subclause 66.8(1)(a)(ii)(B)(I) of the Act is replaced by the following: (I) the total of all amounts required by subsections 127(8) and 127.48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.48(1) ) of the taxpayer in respect of the fiscal period, and (2) Subclause 66.8(1)(a)(ii)(B)(I) of the Act, as enacted by subsection (1), is replaced by the following: (I) the total of all amounts required by subsections 127(8), 127.48(12) and 127.49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(1) ) of the taxpayer in respect of the fiscal period, and (3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023. (4) Subsection (2) is deemed to have come into force on January 1, 2024. 16 (1) The Act is amended by adding the following after section 67.6: Definitions 67.7 (1) The following definitions apply in this section. non-compliant amount , for a taxation year, means the amount determined by the formula A × B ÷ C where A is the total of all amounts that would, if subsection (2) did not apply, be deductible in computing income in the taxation year in respect of the use of a residential property as a short-term rental in the taxation year; B is the number of days in the taxation year that the residential property was a non-compliant short-term rental; and C is the number of days in the taxation year that the residential property was a short-term rental. ( montant non conforme ) non-compliant short-term rental  means, at any time, a short-term rental that is located in a province or municipality that, at that time, (a) does not permit the operation of the short-term rental at the location of the short-term rental; or (b) requires registration, a licence or a permit to operate the short-term rental, and the short-term rental does not comply with all applicable registration, licensing and permit requirements. ( location à court terme non conforme ) residential property  means all or any part of a house, apartment, condominium unit, cottage, mobile home, trailer, houseboat or other property, located in Canada, the use of which is permitted for residential purposes under applicable law. ( bien résidentiel ) short-term rental  means a residential property that is rented or offered for rent for a period of less than 90 consecutive days. ( location à court terme ) Non-deductibility of expenses — short-term rental (2) Notwithstanding any other provision of this Act, no amount is deductible in computing income in respect of a short-term rental for a taxation year, to the extent the amount is a non-compliant amount for the taxation year.

Human Resources committee  We have raised the premiums to $1.66, up from $1.63. We get advice from the chief actuary every year to that effect. Currently, EI premiums are 22¢ below where they were when the current Leader of the Opposition was EI minister.

Human Resources committee  We committed to keeping EI premiums at $1.66 until we get advice from the chief actuary.

Human Resources committee  That doesn't mean it isn't needed; it means we have to be mindful of when we do it and how we sequence it, so that the impact on premiums is responsible, and we really need to understand.... It doesn't mean we're not doing things in EI, but it means that I cannot give you a date right now as to when I'm going to drop a massive plan that's going to cost workers and employers.

Finance committee  Going back to the fiscal responsibility issue that we were discussing a minute ago, I really think the Conservatives have to look at themselves in the mirror and ask this: How can they talk about fiscal responsibility when they were calling for us to cut EI premiums and to cut our contributions to the CPP? That is not fiscal responsibility. That is fiscal recklessness. Our government believes in doing the tough things that you need to do to make compassionate investments in Canadians and to be fiscally responsible.

Small Business  This is a prudent and transparent way for EI premiums to be managed, and I do not understand exactly why the hon. member would be against it.

Public Accounts committee  My questions will go to Finance. I'm looking at page 41 of volume 1, table 1.1, under line item “employment insurance premiums”. The amount for 2022 appears to me to be quite healthy. Based on everything the IMF has said about a potential slowdown in the global economy, and based also on what the World Bank has said on that same issue, I'd like Finance's view on where we are in terms of the amount for EI and whether or not we are well positioned to weather a recession storm, potentially, if that comes.

Public Accounts committee  No. It's our EI premiums under “revenues”.

Fall Economic Statement Implementation Act, 2022  Let us get the facts straight. The opposition is referring to the regular annual increase to EI and CPP premiums as payroll taxes. This is misleading. Putting money away for retirement or in case people lose their jobs is not a tax. It is a safety net and it is essential. With respect to the so-called taxes on groceries and home heating, what the opposition is talking about is the price on pollution.

Finance committee  I've just been enforcing the time, as you were so concerned about, Mr. Lawrence. The increases in premiums for EI and CPP are needed to make sure that when people lose their jobs, in the case of EI, or when our seniors retire, the funds are there to ensure that they can collect their pension or, in the case of EI, their EI.

Finance committee  There's been a lot of conversation here today, certainly from the members opposite—we hear it in the House every day, I'd say, triple as often as we used to hear it—that they object to any kind of increase in EI premiums or CPP contributions. They've talked a lot, and today we've heard a lot about how this would save money, but I want to make sure we examine the consequences. What would be the consequences of not ensuring that CPP premiums and EI premiums or contributions don't keep up adequately to ensure that we have enough when people need to draw on their pensions or need to draw on EI?

Finance committee  Kelly, I'd like to clarify something that I think I heard you say, but I don't want to put words in your mouth. You were talking about EI premiums earlier, and I think I heard you say that you were suggesting that the share of the EI premium covered by the employee increase and that the employer portion decrease. Did I understand you correctly?

Finance committee  Lawrence—I just want to confirm this so that I understand—you are advocating that there be no increases to EI premiums or CPP premiums. Is that correct? That's a yes-or-no question.

Finance committee  Thank you very much. Your time is over. These increases in EI premiums and CPP premiums are needed to ensure—