Budget Implementation Act, 2007

An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007

This bill is from the 39th Parliament, 1st session, which ended in October 2007.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

Part 1 implements income tax measures proposed or referenced in Budget 2007 to
(a) introduce a tax on distributions from certain publicly traded income trusts and limited partnerships, effective beginning with the 2007 taxation year;
(b) reduce the general corporate income tax rate by one half of a percentage point, effective January 1, 2011;
(c) increase the age credit amount by $1,000 from $4,066 to $5,066, effective January 1, 2006;
(d) permit income splitting for pensioners, effective beginning in 2007;
(e) introduce a new child tax credit of $2,000 multiplied by the appropriate percentage for a taxation year, effective beginning in 2007;
(f) increase the spousal and other amounts to equal the basic personal amount, effective beginning in 2007;
(g) increase the age limit for maturing registered retirement savings plans, registered pension plans and deferred profit sharing plans to 71 years of age, effective beginning in 2007;
(h) expand the types of investments eligible for registered retirement savings plans and other deferred income plans, effective March 19, 2007; and
(i) increase the contribution limits for registered education savings plans and expand eligible payments for part-time studies, effective beginning in 2007.
Part 1 also amends the Canada Education Savings Act to increase the maximum annual grant payable on contributions made to a registered education savings plan after 2006.
Part 2 amends the Excise Tax Act to clarify the legislative authority that allows the Canada Revenue Agency to pay refunds of excise tax directly to end-users, where fuel subject to excise has been used in tax-exempt circumstances. It also amends that Act to repeal the excise tax on heavy vehicles and to implement the Green Levy on vehicles with fuel consumption of 13 litres or more per 100 kilometres. It also provides an authority for the Canada Revenue Agency to pay a refund of the Green Levy for vans equipped for wheelchair access.
Part 3 implements goods and services tax/harmonized sales tax (GST/HST) measures proposed or referenced in Budget 2007. It amends the Excise Tax Act to exempt midwifery services from the GST/HST and to zero-rate certain supplies of intangible personal property made to non-GST/HST registered non-residents. It also amends that Act to repeal the GST/HST Visitor Rebate Program and to implement a new Foreign Convention and Tour Incentive Program, which provides rebates of tax in respect of certain property and services used in the course of conventions held in Canada and the accommodation portion of tour packages for non-residents, and establishes new information requirements in the case where rebates are credited by the vendor.
Part 4 implements other measures relating to taxation. It amends the Customs Tariff to increase the duty-free exemption for returning Canadian residents, from $200 to $400, for absences from Canada of not less than 48 hours. It amends the Federal-Provincial Fiscal Arrangements Act to clarify that when a federal corporation listed in Schedule I to that Act pays provincial taxes or fees, wholly-owned subsidiaries of that corporation also pay provincial taxes or fees. It also authorizes the Minister of Finance to make payments totaling $400 million out of the Consolidated Revenue Fund to the Province of Ontario to assist the province in the transition to a single corporate tax administration. This last measure is consequential to the October 6, 2006 Canada-Ontario Memorandum of Agreement Concerning a Single Administration of Ontario Corporate Tax.
Part 5 enacts the Tax-back Guarantee Act, which legislates the Government’s commitment to dedicate all effective interest savings from federal debt reduction each year to ongoing personal income tax reductions. That Part also commits the Minister of Finance to report publicly at least once a year on personal income tax relief provided under the Guarantee to Canadians.
Part 6 amends the Federal-Provincial Fiscal Arrangements Act to set out the amounts of the fiscal equalization payments to the provinces and the territorial formula financing payments to the territories for the fiscal year beginning on April 1, 2007 and to provide for the method by which those amounts will be calculated for subsequent fiscal years. It also authorizes certain deductions from those amounts that would otherwise be payable under that Act. In addition, it makes consequential amendments to other Acts.
Part 6 also amends that Act to provide increased funding for the Canada Social Transfer beginning on April 1, 2007, and to provide for the method by which the Canada Social Transfer and the Canada Health Transfer amounts will be calculated for subsequent fiscal years, including per capita cash allocations. It also provides for transition protection.
Part 7 amends the Financial Administration Act to modernize Crown borrowing authorities.
Part 8 amends the Canada Mortgage and Housing Corporation Act to permit the Minister of Finance to lend money to the Canada Mortgage and Housing Corporation.
Part 9 amends the Bankruptcy and Insolvency Act, the Canada Deposit Insurance Corporation Act, the Companies’ Creditors Arrangement Act, the Payment Clearing and Settlement Act and the Winding-up and Restructuring Act to allow the Governor in Council to prescribe the meaning of “eligible financial contract”. Those Acts are also amended to provide that, after an insolvency event occurs, a party to an eligible financial contract can deal with supporting collateral in accordance with the terms of the contract despite any stay of proceedings or court order to the contrary. This Part also includes amendments to the Bankruptcy and Insolvency Act and the Winding-up and Restructuring Act to provide that collateral transactions executed in accordance with the terms of an eligible financial contract are not void only because they occurred in the prescribed pre-insolvency or winding-up period.
Part 10 authorizes payments to provinces and territories.
Part 11 authorizes payments to certain entities.
Part 12 extends the sunset provisions of financial institutions statutes by six months from April 24, 2007 to October 24, 2007.
Part 13 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with the power to authorize another minister, to whom he or she has delegated powers under that Act, to subdelegate those powers to the chief executive of the relevant department. That Act is also amended with respect to the application of section 9 to certain departments.
Part 14 amends the Financial Consumer Agency of Canada Act to allow the Minister of Finance to provide funding to the Agency for activities related to financial education.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-52s:

C-52 (2023) Enhancing Transparency and Accountability in the Transportation System Act
C-52 (2017) Supporting Vested Rights Under Access to Information Act
C-52 (2015) Law Safe and Accountable Rail Act
C-52 (2012) Law Fair Rail Freight Service Act
C-52 (2010) Investigating and Preventing Criminal Electronic Communications Act
C-52 (2009) Retribution on Behalf of Victims of White Collar Crime Act

Votes

June 12, 2007 Passed That the Bill be now read a third time and do pass.
June 12, 2007 Passed That this question be now put.
June 12, 2007 Passed That, in relation to Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, not more than one further sitting day shall be allotted to the consideration of the third reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Business on the day allotted to the consideration of the third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
June 5, 2007 Passed That Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, as amended, be concurred in at report stage with further amendments.
June 5, 2007 Passed That Bill C-52 be amended by deleting Clause 45.
May 15, 2007 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 15, 2007 Passed That the question be now put.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 12:55 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

I know it is difficult for the Liberal Party to hear these words coming from respected environmentalists from around the world that Canada is now a leader on the environment. It is difficult to hear these things but, quite frankly, sometimes the truth hurts. However, the truth always is the truth and sometimes it needs to be said. Today is one of the days when the truth must be said.

In addition, I want to get to the last of the three Es which, of course, is energy. Canada is an emerging energy superpower, and there is no question about that. Canada has been blessed with natural resource wealth, the likes of which no other nation has been blessed.

We need to be responsible in how we deal with Canada's energy and resource wealth but we also need to take a serious look at the types of energy that we are consuming, which is why the government committed $2 billion toward a new renewable fuel strategy. Organizations have run commercials thanking Prime Minister Harper for keeping his promise. This is not us saying that we keep our promises. We know we keep our promises.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 12:55 p.m.

The Acting Speaker Royal Galipeau

The hon. member for Peterborough will remember that I often chastise members of other parties when they mention members of the House of Commons by their surname, and it applies to him also.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 12:55 p.m.

Liberal

Andrew Telegdi Liberal Kitchener—Waterloo, ON

He is a rookie.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 12:55 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

My sincere apologies, Mr. Speaker. I get so excited when I talk about the record of the government on keeping its promises, cutting taxes, cleaning up the environment and improving the health care situation. Sometimes I get so excited I want to refer to the Prime Minister by name, because he is not just my friend, he is a friend of this country and he is a tremendous world leader. Sometimes I just get too excited.

I want to talk about energy and the investments we are making into renewable fuels. This will not just help us clean up to reduce our carbon footprint, but it will also breathe new life into areas like Peterborough where agriculture now has an additional market. We are talking about taking things that can be grown in the field and converting them into energy, clean energy, energy that will have long lasting benefits for all Canadians. The farmers in my riding are really excited about this.

Last year and in years past it was certainly very difficult for agriculture in Canada. I have often said that agriculture in Canada suffered for more than a decade of failed leadership and planning on behalf of the former government. That may be difficult for the Liberals to hear. They will not be happy that I said that, but it is a fact. When they brought in the CAIS program, it cut the heart out of agriculture in Canada and they did not support our farmers.

This government clearly does support our farmers. The new renewable fuel strategy has created almost a bidding war for dirt in Peterborough. People want to plant crops because they see that they can make money at it again. That is all our farmers want. They do not want handouts. They want a market. This government is creating a market.

I also want to talk a little about tax fairness. We know, among other things, that the Liberals do not stand for a democratically elected and accountable Senate. They stand for the influence of big money in politics. They do not believe that they should ever have to tell Canadians where the sponsorship money went. We know that this is a fact.

We also know that based on the testimony they have made in the House time and time again, they do not support tax fairness. They do not believe that all Canadians, in fact, all corporations, should pay their fair share of taxes. We know that from the words of the Leader of the Opposition himself and many members of the Liberal Party. They stand alone on that.

I would like to recognize that the Bloc Québécois and the NDP both support the government's decision. It was a difficult decision, but when we made the promise in the last election to stand up for Canada, that meant we had to protect the tax base. It meant that we had to provide tax fairness for all Canadians.

Indeed, if we want to continue to assist seniors, families and low income individuals in this country, we simply cannot allow people to escape paying their fair share of taxes, because the burden gets placed on people who cannot afford to pay it.

Sometimes difficult decisions have to be made in government. We understand that. The former government did not. The Liberals did not understand that difficult decisions had to be made. In fact, they often avoided difficult decisions.

The member for Scarborough—Guildwood the very day that the former finance minister made his announcement not to tax income trusts was on CBC saying, “Yes, we must move to tax income trusts”, and the former finance minister did not do that.

Everyone knows the government certainly has access to the departmental information that clearly demonstrated tax leakage. All provinces came forward and said there was tax leakage. The Governor of the Bank of Canada said the way that things were going would lead to lower levels of investment, lower levels of productivity, less employment. It was bad for Canada. We have moved to fix that.

Budget 2007 has the title “Aspire”. It is about aspiring to a stronger, safer, better Canada. I will say that again because it makes me feel good: a stronger, safer, better Canada. I would love it if people stopped and considered that. I would like them to absorb it.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 12:55 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

It is a George Bush slogan.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 12:55 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

This government has long said that we are getting things done for all of us.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

No, you're not. You're getting everything done for George Bush.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

The slogan of the Liberal Party could have been “getting things done for some of us”.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

What about prorogue?

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Mr. Speaker, our party does not believe in getting things done for some of us. We believe in getting things done for all of us. We do not pick favourites in the budget. We do not pick winners and losers.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

They're all losers.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

We believe that fairness--

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

The Acting Speaker Royal Galipeau

Order, please. The hon. member for Peterborough has the floor for another minute and a half. If we can all be patient, there will be 10 minutes of questions and comments afterward and I will recognize as many members as are interested in asking questions. For the moment, he has the floor and I would like to hear him.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Mr. Speaker, I really appreciate that you want to hear what I have to say because it is important. Canadians at home want to hear about how good this budget is for them.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

No they don't. They want you out.