An Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005

This bill was last introduced in the 39th Parliament, 2nd Session, which ended in September 2008.

Sponsor

Jean-Pierre Blackburn  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005 to ensure the effective operation of that chapter 47.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Pension PlansOral Questions

May 13th, 2009 / 2:30 p.m.
See context

NDP

Jack Layton NDP Toronto—Danforth, ON

Mr. Speaker, the truth is that the government will not act even when it is the law.

In December 2007, Parliament took action to protect Canadian pensions by adopting Bill C-12 to amend bankruptcy laws. Section 39(2) prioritizes unpaid pension contributions in the case of bankruptcy. Sections 44 and 131 ensures that the court cannot unilaterally overturn a collective agreement. Section 126 prohibits a court from sanctioning restructuring plans unless all unpaid wage claims and pension obligations have been met. It is the law but the government has refused to put it into force. Why?

Bill C-219Points of OrderRoutine Proceedings

January 31st, 2008 / 1:15 p.m.
See context

Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I rise on a point of order respecting the procedural acceptability of Bill C-219, An Act to amend the Income Tax Act (deduction for volunteer emergency service), which is currently on the order of precedence in the name of the hon. for Malpeque.

Without commenting on the merits of the bill, I would ask the Speaker to rule on whether the bill conforms to the procedural requirements for tax legislation.

Briefly stated, the Income Tax Act has been amended since the introduction of Bill C-219, so that the bill now has the unintended effect of increasing taxes.

Although the bill was in order when it was first introduced, I will be arguing that the bill should have been preceded by a ways and means motion when it was reinstated in the current session of Parliament.

I will therefore be arguing that the bill should be withdrawn from the order paper.

Bill C-219 proposes to amend the Income Tax Act to allow volunteer emergency workers to deduct $1,000 from their taxable income if they performed at least 100 hours of volunteer service and $2,000 if they performed at least 200 hours of volunteer service.

Bill C-219 was first introduced in the House during the previous session of Parliament on April 10, 2006.

On October 16, 2007 the bill was deemed to have been introduced and read a first time in the current session of Parliament pursuant to Standing Order 86.1 which provides for the reinstatement of private members' business following a prorogation.

As the Speaker knows, bills that increase the level of taxation must first be preceded by the adoption of a ways and means motion. The 22nd edition of Erskine May states at pages 777 and 778 that matters requiring authorization by a ways and means resolution include “the repeal or reduction of existing alleviations of taxation, such as exemptions or drawbacks”.

Bill C-219 proposes to amend the Income Tax Act to provide a tax deduction for voluntary emergency workers. Erskine May makes clear at page 781 that bills that alleviate taxation do not require a ways and means motion.

I therefore recognize that the bill was properly before the House when it was first introduced in the previous session of this Parliament. However, since Bill C-219 was first introduced, the Income Tax Act has been amended and as a consequence Bill C-219 will now have the unintended effect of increasing levels of taxation.

Let me take a moment to explain why.

Bill C-219 would add proposed paragraphs 60(y) and 60(z), and proposed sections 60.03 and 60.04 to the Income Tax Act. As I noted earlier, after Bill C-219 was introduced, the Income Tax Act was amended by Parliament in ways which affect Bill C-219.

First, paragraph 60(y) of the Income Tax Act was added by subsection 174(1) of the Budget Implementation Act, 2006, which received royal assent on June 22, 2006.

The effect of this new paragraph is to provide a deduction equal to the amount of any universal child care benefit that a taxpayer is required to pay. The deduction is necessary because when the taxpayer initially received the universal child care benefit the amount is required to be treated as income. As such, it is taxable.

However, if the benefit is to be repaid, taxes would be paid on an amount the taxpayer did not get to keep. That is why the deduction is required. Without it, more taxes are paid. Therefore, removing the deduction would have the effect of increasing the taxes paid.

Proposed paragraph 60(y) contained in Bill C-219 would set out the new tax deduction proposed in the bill but would also have the effect of replacing existing paragraph 60(y) in the Income Tax Act. Therefore, as currently drafted, Bill C-219 would result in a greater tax burden.

The same could also be said for proposed paragraph 60(z), contained in Bill C-219. Section 105 of the Budget and Economic Statement Implementation Act, 2007, which received royal assent on December 14, 2007, has already added paragraph 60(z) to the Income Tax Act.

Paragraph 60(z) provides for the deduction of any repayment of any grants or bonds paid under the Canada Disability Savings Act. Bill C-219 would remove that deduction.

The third change to the Income Tax Act to which I wish to draw attention is proposed section 60.03 which was added by section 5(1) of the Budget Implementation Act, 2007, which received royal assent on June 22, 2007.

Section 60.03 of the Income Tax Act allows a couple to split their pension income to permit them to take advantage of a lower effective marginal tax rate.

The proposed section 60.03 of Bill C-219 sets out the evidence taxpayers are required to submit to be eligible for the new tax deduction proposed in the bill, but would also have the effect of replacing the existing section 60.03 in the Income Tax Act. In other words, Bill C-219 would repeal the pension splitting provisions and therefore result in a greater tax burden for seniors.

We have with Bill C-219 an unusual circumstance. A ways and means motion was not required when the bill was introduced in the previous session because the bill did not have the effect of increasing taxes at that time.

However, Bill C-219 amends the Income Tax Act, which has since been amended. The provisions of the Income Tax Act, which are being repealed by Bill C-219, were for the benefit of taxpayers. By removing these provisions, we would be adding to the tax burden. Consequently, I would suggest that the bill should have been preceded by an adoption of a ways of means motion at the time of reintroduction in this session and that the bill is therefore now improperly before the House.

I note that in this session the government tabled ways and means motions and had them adopted by the House before the reinstatement of two government tax increase bills from the previous session, namely Bill C-10, the income tax bill, and Bill C-12, the bankruptcy and wage earner protection bill. The government would have tabled a ways and means motion for any new government bill to increase taxes which would remove provisions added in previous budget bills.

In addition, I suggest that the requirement for a ways and means motion is not limited to the introduction of a bill, but also to any motion that would increase taxation. For example, it is clear that motions to amend bills that have the effect of increasing taxation require a ways and means motion. Citation 982 of the sixth edition of Beauchesne's states that, “No motion can therefore be made to impose a tax”.

It could therefore be argued that the motion for second reading of Bill C-219 is out of order, as the bill would have the effect of increasing the levels of taxation.

Finally, Mr. Speaker, if you were to find that Bill C-219 is now improperly before the House, as I argue, I believe you would be obliged to direct that the order for second reading of the bill be discharged and the bill be withdrawn from the order paper, as you did in the case of Bill C-418 earlier in the session, on November 28, 2007.

Bill C-12Statements by Members

January 28th, 2008 / 2 p.m.
See context

Bloc

Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC

Mr. Speaker, thanks to the Bloc Québécois, Bill C-12 was amended to protect one of the fundamental differences that sets the Quebec nation apart: its civil code. As a result, the bill protects Quebeckers' RRSPs from seizure.

The Conservative government's Bill C-12, previously known as Bill C-55, would have undermined Quebec legislation in defiance of a motion passed unanimously by Quebec's National Assembly.

The Bloc Québécois can say “mission accomplished” because Bill C-12, as amended by the Bloc Québécois, received royal assent on December 14. The act also covers the wage earner protection program, which the Conservative government must immediately implement so that workers whose employers declare bankruptcy can recover lost wages.

Given the current economic climate, the government has been inexplicably slow to implement the wage earner protection program. The Bloc Québécois will put pressure on the Conservative government until it implements this program, which should be as soon as possible.

Message from the SenateRoyal Assent

December 14th, 2007 / 1:15 p.m.
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Conservative

The Acting Speaker Conservative Royal Galipeau

I have the honour to inform the House that when the House did attend His Honour the Deputy to Her Excellency the Governor General in the Senate chamber His Honour was pleased to give, in Her Majesty's name, the royal assent to the following bills:

Bill S-2, An Act to amend the Canada-United States Tax Convention Act, 1984--Chapter 32;

Bill C-15, An Act respecting the exploitation of the Donkin coal block and employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, and to make a consequential amendment to the Canada--Nova Scotia Offshore Petroleum Resources Accord Implementation Act--Chapter 33;

Bill C-35, An Act for granting to Her Majesty certain sums of money for the federal public administration for the financial year ending March 31, 2008--Chapter 34;

Bill C-28, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 and to implement certain provisions of the economic statement tabled in Parliament on October 30, 2007--Chapter 35;

Bill C-12, An Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005--Chapter 36;

Bill C-18, An Act to amend the Canada Elections Act (verification of residence)--Chapter 37.

It being 1:20 p.m., the House stands adjourned until Monday, January 28, at 11:00 a.m., pursuant to Standing Orders 28(2) and 24(1).

(The House adjourned at 1:20 p.m.)

December 3rd, 2007 / 4:50 p.m.
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Conservative

Monte Solberg Conservative Medicine Hat, AB

We are doing a review of the student loans program. We're conscious of the millennium scholarship fund. We've been meeting with a number of stakeholders to talk about these things.

Of course, all governments put money into collecting bad debts caused by people who are unable to repay their student loans. But I also point out that there is legislation coming through the Senate now that would make it easier for people who have large student loans and are unable to repay them to escape from underneath that burden—Bill C-12, I think it is.

I would also point out that we have invested very heavily in education. Yes, there may be $5 million in there to help collect bad debts, but there's $800 million going in this year to boost the system, and a number of other measures we put in place to help students.

Bankruptcy and Insolvency ActRoutine proceedings

October 29th, 2007 / 3:05 p.m.
See context

Jonquière—Alma Québec

Conservative

Jean-Pierre Blackburn ConservativeMinister of Labour and Minister of the Economic Development Agency of Canada for the Regions of Quebec

moved for leave to introduce Bill C-12, An Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005.

Mr. Speaker, pursuant to the special order made earlier, I would like to inform you that this bill dealing with wage earner protection is in the same form as Bill C-62 was in the previous session at the time of prorogation.

(Motions deemed adopted, bill read the first time and printed)