Budget and Economic Statement Implementation Act, 2007

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

This bill is from the 39th Parliament, 2nd session, which ended in September 2008.

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 goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 19, 2007 Budget but not included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007. Specifically, the Excise Tax Act is amended to
(a) increase the percentage of available input tax credits for GST/HST paid on meal expenses of truck drivers from 50% to 80% over five years beginning with expenses incurred on or after March 19, 2007;
(b) increase the GST/HST annual filing threshold from $500,000 in taxable supplies to $1,500,000 and the annual remittance threshold from $1,500 to $3,000, both effective for fiscal years that begin after 2007;
(c) increase the GST/HST 48-hour travellers’ exemption from $200 to $400 effective in respect of travellers returning to Canada on or after March 20, 2007; and
(d) implement changes to the rules governing self-assessment under Division IV of Part IX of the Excise Tax Act to ensure that GST/HST applies appropriately in respect of intangible personal property acquired on a zero-rated basis and consumed in furthering domestic activities, applicable to supplies made after March 19, 2007.
Part 2 amends the non-GST portion of the Excise Tax Act to implement measures announced in the March 19, 2007 Budget. Specifically, the excise tax exemptions for renewable fuels, including ethanol and bio-diesel, are repealed, effective April 1, 2008.
Part 3 implements income tax measures proposed in the March 19, 2007 Budget but not included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007. In particular, it
(a) introduces a new Working Income Tax Benefit;
(b) eliminates income tax on elementary and secondary school scholarships;
(c) eliminates capital gains tax on donations of publicly-listed securities to private foundations;
(d) enhances the child fitness tax credit;
(e) expands the scope of the public transit tax credit;
(f) increases the lifetime capital gains exemption to $750,000;
(g) increases the deductible percentage of meal expenses for long-haul truck drivers;
(h) provides tax relief in respect of the 2010 Winter Olympic and Paralympic Games;
(i) allows for phased-retirement options for pension plans;
(j) extends the mineral exploration tax credit;
(k) enhances tax benefits for donations of medicine to the developing world;
(l) streamlines the process for prescribed stock exchanges;
(m) introduces an investment tax credit for child care spaces;
(n) introduces a new withholding tax exemption with respect to certain cross-border interest payments;
(o) prevents double deductions of interest expense on borrowed money used to finance foreign affiliates (the Anti-Tax-Haven Initiative);
(p) eases tax remittance and filing requirements for small business;
(q) introduces a mechanism to accommodate functional currency reporting;
(r) provides certain tobacco processors that do not manufacture tobacco products with relief from the Tobacco Manufacturers’ Surtax; and
(s) provides authority for regulations requiring the disclosure by publicly traded trusts and partnerships of information enabling investment managers to prepare the tax information slips that they are required to issue to investors on a timely basis.
Part 4 implements the disability savings measures proposed in the March 19, 2007 Budget. The measures are intended to support long-term savings through registered disability savings plans to provide for the financial security of persons with severe and prolonged impairments in physical or mental functions. Part 4 contains amendments to the Income Tax Act to allow for the creation of registered disability savings plans. It also enacts the Canada Disability Savings Act. That Act provides for the payment of Canada Disability Savings Grants in relation to contributions made to those plans. The amount of grant is increased for persons of lower and middle income. It also provides for the payment of Canada Disability Savings Bonds in respect of persons of low income.
Part 5 implements measures that provide for payments to be made to provinces as a financial incentive for them to eliminate taxes on capital under certain circumstances.
Part 6 enacts the Bank for International Settlements (Immunity) Act.
Part 7 amends the Pension Benefits Standards Act, 1985 to permit phased retirement arrangements in federally regulated pension plans by allowing an employer to simultaneously pay a partial pension to an employee and provide further pension benefit accruals to the employee. These amendments are consistent with amendments to the Income Tax Regulations to permit phased retirement.
Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of Canada’s contribution to the Advance Market Commitment.
Part 9 amends the Canada Oil and Gas Operations Act to authorize the National Energy Board to regulate traffic, tolls and tariffs in relation to oil and gas pipelines regulated under that Act.
Part 10 amends the Farm Income Protection Act to allow financial institutions to hold contributions under a net income stabilization account program.
Part 11 amends the Federal-Provincial Fiscal Arrangements Act to provide for an additional fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador. This Part also specifies the time and manner in which the calculation of fiscal equalization payments will be made and it amends that Act’s regulation-making authority. In addition, this Part makes consequential amendments to other Acts.
Part 12 amends the Canada Education Savings Act to clarify the authority of the Minister of Human Resources and Social Development to collect, on behalf of the Canada Revenue Agency, any information that the Canada Revenue Agency requires for purposes of administering the registered education savings plan tax provisions.
Part 13 authorizes payments to be made out of the Consolidated Revenue Fund to an entity, designated by the Minister of Finance, to facilitate public-private partnership projects.
Part 14 implements tax measures proposed in the October 30, 2007 Economic Statement. With respect to income tax measures, it
(a) reduces the general corporate income tax rate;
(b) accelerates the tax reduction for small businesses;
(c) reduces the lowest personal income tax rate, which automatically reduces the rate used to calculate non-refundable tax credits and the alternative minimum tax; and
(d) increases the basic personal amount and the amount upon which the spouse or common-law partner and wholly dependent relative credits are calculated.
Part 14 also amends the Excise Tax Act to implement, effective January 1, 2008, the reduction in the goods and services tax (GST) and the federal component of the harmonized sales tax (HST) from 6% to 5%. That Act is amended to provide transitional rules for determining the GST/HST rate applicable to transactions that straddle the January 1, 2008, implementation date, including transitional rebates in respect of the sale of residential complexes where transfer of ownership and possession both take place on or after January 1, 2008, pursuant to a written agreement entered into on or before October 30, 2007. The Excise Act, 2001 is also amended to increase excise duties on tobacco products to offset the impact of the GST/HST rate reduction. The Air Travellers Security Charge Act is also amended to ensure that rates for domestic and transborder air travel reflect the impact of the GST/HST rate reduction. Those amendments generally apply as of January 1, 2008.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from 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-28s:

C-28 (2022) Law An Act to amend the Criminal Code (self-induced extreme intoxication)
C-28 (2021) Strengthening Environmental Protection for a Healthier Canada Act
C-28 (2016) An Act to amend the Criminal Code (victim surcharge)
C-28 (2014) Law Appropriation Act No. 5, 2013-14

Votes

Dec. 13, 2007 Passed That the Bill be now read a third time and do pass.
Dec. 10, 2007 Passed That 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, be concurred in at report stage.
Dec. 10, 2007 Failed That Bill C-28 be amended by deleting Clause 181.
Dec. 4, 2007 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:40 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, earlier in the debate we heard the member for Madawaska—Restigouche say that somehow the NDP had brought about the defeat of the former Liberal government. As I recall, at that time in 2005, the Liberals were promising the same type of large corporate tax breaks. That, combined with their need for power, opened the door for the NDP to come along and propose changes, which was later called the NDP budget. It strikes me as ironic that we hear these stories from across the way of what the NDP did when in fact it was the Canadian people who gave those birds the boot.

Would the member agree that it is further evident, at least it is to my mind, that the Liberals have yet to take ownership of their disgraceful record and the abuses that Gomery uncovered?

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:40 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, that is a very good question. In fact, from 2001 to 2007 corporate tax cuts have lost Canadians a total of $56 billion in government revenue.

What if we were to take 10% of that $56 billion and invest in housing, in our young people, in child care, in supporting the manufacturing industry, and in supporting green jobs such as retrofitting homes so that people can burn less and pay less? Imagine what we could do with the $56 billion. Imagine the kind of greenhouse gas reduction that we could really make happen.

I recall that in the 1993 red book there was a plan to reduce greenhouse gas emissions by 20%. By now, they have actually gone up by 30%. It is unbelievable. What the Liberals do really well is talk one line. I heard all this discussion about how we need to protect and save the manufacturing industry, yet in November, when there was a chance for us to vote, the Liberals were nowhere in sight. They abstained. They decided not to offer their opinion in the vote. What they say is completely different from what they do. That has been their record.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:45 p.m.

NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I was really interested in my colleague's comments, because of course when we are looking at a surplus of $14.2 billion, that is not actually the government's money that is being given away here. It is revenue that has been generated by the hard-working families of this country. Over the years, many of them, of course, are the exact same hard-working families who are now living in and heading up seniors' households.

I want to talk about seniors specifically because I have had the opportunity, as the NDP seniors critic, to talk to seniors right across the country. What they are telling me and what they are looking for is some investment in safe, affordable housing and public transportation, and of course my colleague just touched on that.

They want to have access to doctors. We have all probably heard the stories about the long waiting lists in communities like mine in Hamilton. They want pharmacare, adequate nursing home standards and adequate long term care.

They want lifelong learning opportunities. We almost caricature seniors as being beyond their prime when so many of them can play really important roles, for example in intergenerational learning.

Above all, what seniors are looking for is some help with their income supports. They need increases to the OAS, CPP and GIS so they can make ends meet. They have played by the rules all their lives. They have worked hard. Now all they want to be able to do is pay the bills that are arriving at their doors.

While the government has chosen to give truckloads of cash to the oil and gas industry, we are leaving seniors at a point where they have to choose between heating and eating.

I would like to ask my colleague from Trinity—Spadina if she would agree that what we really need to do in the House is start to undertake a review of income supports for seniors and make sure that we look ahead for 10 years so that seniors will have the money they need to live in retirement with dignity and respect.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:45 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, seniors have served our country really well and deserve to live in dignity. They deserve to actually get the money that is owed to them, because the pensions they have, whether it is the Canada pension or old age security, are calculated by the rate of inflation because they are indexed.

However, the government made some mistakes a few years ago and owes at least $1 billion. First it was the Liberal government and now it is the Conservative government. Do we think that because they made a mistake they are willing to say they are sorry and return that money? No.

Aside from all the investments that a previous speaker talked about, we should really increase the--

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:45 p.m.

The Acting Speaker Royal Galipeau

Order. It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Hull—Aylmer, Government appointments; the hon. member for Rimouski-Neigette—Témiscouata—Les Basques, Human Resources and Social Development.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:45 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I appreciate the opportunity, however short it is, to give voice to a growing number of people across the country who are increasingly anxious about their state in life and their ability to look after themselves and their families. More and more of them are falling into poverty.

The homeless in our communities want somebody to speak in the House on their behalf and to challenge the government in terms of its priorities and what it has set out in its budget, in the mini-budget that we saw come before the House, and in Bill C-28, the bill we are speaking about.

I will tell people what many of us were expecting, given what we are hearing, seeing and feeling across the country, with the unease and anxiety in people as they look anxiously and uneasily at their futures and as they are experiencing their abilities to look after themselves, to buy food, put it on table, pay the rent and look after their families as the economy evolves and globalization takes hold and the very foundation of our industrial sector gets shaken to its core.

There was a time in this country when people could look ahead if they worked hard, made the investment and got the education they needed. They could look ahead and expect that investment of time and energy to produce progress for them. It would put them in a place where they would be able to earn a few more dollars and afford a few more things to look after their children in a different way.

However, we are now at a time in our history when that is not the case. As we cross the country and talk to people, and I have done that over the last two years to look at the very real poverty in our communities, we find that more and more people are actually anxious about where they are. They are not so much looking ahead any more. They are now beginning to look over their shoulder to see what might be there should they slip, should the rung disappear, should they lose their jobs, should their plants close, in short, should something happen over which they have absolutely no control, something that throws them into a total tailspin.

What is there for them? What kind of social safety net exists any more, particularly when they and others and our forefathers and foremothers worked so hard to weave a social safety net in this country, which we expected would take care of us in times of difficulty and in our old age?

More and more we are beginning to see the edge of the fabric fray and people dropping into poverty. We have levels of poverty like we have never seen in our communities, our society and our country today. The poor themselves are a major challenge. We need to be doing something about that. We are disappointed over in this corner of the House that there was nothing to address that in the budget, in the mini-statement on the budget or in Bill C-28.

However, even more important or as important is what this says about the rest of society. Thomas Walkom, in a recent article in the Toronto Star, said it most eloquently in my view. He said:

--the poor are the canaries in the coal mine. The deliberate attempts to reconfigure Canada over the past 30 years--by gutting social programs, dismantling national institutions and insisting that market forces alone can solve every problem--have affected everyone. But they've hit the poor first and hardest.

We shouldn't care about poverty just to be nice. We should care about poverty because, in the end, this story isn't just about the 11 per cent or 16 per cent of the population (depending on your statistical source) officially designated as low-income. It is about the deliberate erosion of middle-class Canada. It's about us, too.

I agree with him. As I cross the country I hear more and more people becoming very alarmed. People are experiencing that reality and people are working, getting together and doing everything they can to try to provide some support, to try to knit together with scarce resources community forces and community energy in a way that will provide support, help and assistance to those who find themselves in need.

There are groups in places like St. John's, Newfoundland, where I visited last week, who are gathering to work with their government, which now has an anti-poverty strategy, to try to make sure that people have good and affordable homes to live in. There are people like those in groups in my own community who have come together to work on homelessness and put together a proposal and a plan.

Alas, what these people tell me is that the resources they need to do this good work are scarce to begin with and are running out. They now go from month to month and year to year wondering if there is going to be anything in the budget to support them in the work they do. They are getting tired. They are getting older. They are running out of resources. Unless all levels of government come to the table, they say, the job becomes harder and harder and a point will come when it actually becomes impossible.

On this side of the House, we in the New Democratic Party propose that the government step out with courage and conviction and begin to work together with the folks out there who are committed to this to put together a comprehensive national anti-poverty strategy.

What should be in that strategy? Again, the people I have spoken to and the groups that are working out there tell me that the first and most important thing is to make sure that everybody who lives in Canada, everybody who calls Canada home, everybody who has a Canadian citizenship paper in his or her pocket, should have a decent home to live in. There should be a national housing program.

We have not had a national housing program in this country since the late 1980s or early 1990s, when the Liberal government of 1993 decided, in its zeal to cut the deficit, to do away with the Canada assistance plan and to reduce by literally $7 billion or $8 billion the social transfer that went out to the provinces. We know what impact that had as provinces tried to come to terms with it and download to municipalities. We know what difficulty groups and municipalities then had in dealing with the downloading and what a very difficult challenge they had to live with.

What people are saying is that they need a roof over their heads. If they are going to get out there, get a job, look after their families, feel good about themselves and take advantage of what little opportunity there is, they need a roof over their heads. We need a national housing program.

We need a homelessness initiative with permanent funding, not the band-aid we saw from the previous government. We have groups out there with very little funding that are spending most of their time raising money through car washes and bottle drives to try to house the homeless in their communities. We need a real homelessness initiative with substantial money and core permanent funding.

They also say to me that to put food on the table for people, particularly children, they need income security. We believe that we must give all children access to healthy food. We believe that we need to have support for families during the early years. We need a national child tax supplement, income security and a national child care program.

We also need productive work for people. We need to recognize in a more meaningful way the effort that most people put in when they go to work. We need to make sure that they are making a half-decent wage so they can pay the rent themselves and buy the food they need. We need affordable child care. We need fair minimum wages. We need income security.

Do we expand the Flaherty or Goodale working income tax benefit that covers so few--

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:55 p.m.

The Acting Speaker Royal Galipeau

Order. The hon. member for Sault Ste. Marie knows, as he is experienced enough, that he is not to refer to other members of the House by name, and what members cannot do directly, they cannot do indirectly either. The member may proceed.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:55 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

My apologies, Mr. Speaker.

We need affordable post-secondary education. We need jobs and skills training. We need literacy programs. We do not need to see money cut from literacy. We need to be putting more in. We need to be investing in those skills that people need in order to be involved and engaged in the economy and, hence, we need federal support to strengthen the capacity of Canada's literacy network.

We need a national prescription drug plan to help families afford the medications they need. We need universal public health care.

As I crossed the country, the face of poverty that I saw was primarily female, disabled and aboriginal. That is a disgrace in 2007. A country that consistently shows surpluses in its budgets year after year cannot come to terms and come forward with a comprehensive national anti-poverty strategy.

If this country is looking for a group that has the courage, the commitment and the plan, it need look no further than this end of the House and the New Democratic Party come the next election.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:55 p.m.

Liberal

John Cannis Liberal Scarborough Centre, ON

Mr. Speaker, I was listening to the debate upstairs and could not help coming down because I heard all this hot air.

The member Trinity—Spadina and the member for Sault Ste. Marie talked about transit, housing, environment, students and aboriginals. I would like to quote from an article in the newspaper from back then. It said, referring to the NDP-Liberal budget:

$1.6 billion for affordable housing, with no obligation for provincial matching funds, and will include housing for aboriginals.

$1.5 billion to reduce tuitions to make it easier for students to get post-secondary education--

$900 million for the environment--

$500-million increase in foreign aid to bring Canada in line with a promise to spend 0.7 per cent of GDP.

$100 million to protect workers' pensions--

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:55 p.m.

The Acting Speaker Royal Galipeau

The hon. member for Sault Ste. Marie.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 4:55 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, the member is absolutely right. Every penny of that money that he spoke about was going into corporate tax breaks. The member for Toronto—Danforth met with the then Prime Minister, the member for LaSalle—Émard, and convinced him to actually spend that money on those programs.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 5 p.m.

NDP

Bill Siksay NDP Burnaby—Douglas, BC

Mr. Speaker, I have a question for my colleague. We know that these budget arrangements are a huge giveaway to very profitable large corporations in the oil industry, the gas industry and banking. We also know there is a group of Canadians who receive the guaranteed income supplement who were cheated out of a reasonable payment because of an error that was made in calculating their income and their benefit.

I wonder if the member could address that problem. Why do seniors not deserve the appropriate assistance, the fair dollar that they were to receive, but the large corporations get this huge corporate tax giveaway?

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 5 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I appreciate the question because that is exactly the point that we at this end of the House are trying to make.

There is a choice to be made here. We can take the money that taxpayers give to government and use it to put programs in place that will support people, particularly seniors who have made their investment, who have done the work, paid into their pension plan, and find themselves more and more, as they deal with government, done out of the money that they expected to get.

The indexing is only one example. Not automatically getting their GIS is another example. Some people who qualify for disability pension are not getting that and the list goes on and on.

We are saying let us make investing in people and communities and eradicating poverty a priority. Let us put the money that we have into programs for people instead of into corporate tax breaks.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 5 p.m.

NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I have more of a comment than a question because I do not think anyone in the House doubts that one of the most passionate advocates not just for the reduction of poverty but rather for the eradication of poverty is the member for Sault Ste. Marie.

I welcome his comments and in particular I want to focus on child poverty. The reality is that there is no such thing as a poor child in Canada. It is that child's parents who are poor. Yet, we are putting kids further and further behind the eight ball precisely because of the kinds of things that my colleague from Sault Ste. Marie was just mentioning. We do not have safe and affordable housing. We do not have adequate health care. We do not give kids the benefit of education and literacy training, skills training or youth employment.

I want to say to the member for Sault Ste. Marie, whom the members for Hamilton Centre, Hamilton East—Stoney Creek and I had the privilege of hosting in Hamilton, that his message was taken to heart there. Our community has adopted the motto that Hamilton should be the best place to raise a child. I want to give kudos to him for taking a leadership role right across the country in fighting poverty.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 10th, 2007 / 5 p.m.

NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I appreciate the comments of the member for Hamilton Mountain. We as a party have a very comprehensive set of initiatives that we want to put in place that would lift children out of poverty and help their families look after them. In fact, give them everything that they need, including nutrition, an education, and the capability to participate in their communities to become good and contributing citizens of this country.