Budget Implementation Act, 2009

An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures

This bill is from the 40th Parliament, 2nd session, which ended in December 2009.

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 in the January 27, 2009 Budget. In particular, it
(a) increases by 7.5% above their 2008 levels the basic personal amount and the upper limits for the two lowest personal income tax brackets, thereby also increasing the income levels at which income testing begins for the base benefit under the Canada Child Tax Credit and the National Child Benefit supplement;
(b) increases by $1,000 the amount on which the Age Credit is calculated;
(c) increases to $25,000 the maximum amount eligible for withdrawal under the Home Buyers’ Plan;
(d) introduces amendments to the rules related to Registered Retirement Savings Plans and Registered Retirement Income Funds to allow for recognition of losses in accounts between the time of the annuitant’s death and final distribution of property from the account;
(e) repeals the interest deductibility constraints in section 18.2 of the Income Tax Act;
(f) extends the mineral exploration tax credit for one year;
(g) increases to $500,000 the annual amount of active business income eligible for the 11% small business income tax rate and makes related amendments;
(h) clarifies rules relating to timing of acquisition of control of a corporation; and
(i) creates cost savings through electronic filing of tax information.
In addition, Part 1 implements income tax measures that were referenced in the January 27, 2009 Budget and that were originally proposed in the February 26, 2008 Budget but not included in the Budget Implementation Act, 2008. In particular, it
(a) clarifies the application of the excess corporate holdings rules for private foundations;
(b) increases the amount that corporations will be able to pay as “eligible dividends”;
(c) enacts several regulatory amendments that complement and complete measures enacted in the Budget Implementation Act, 2008;
(d) introduces minor adjustments to the Tax-Free Savings Account rules and the scientific research and experimental development investment tax credit rules included in the Budget Implementation Act, 2008;
(e) implements rules in respect of donations of medicines; and
(f) reduces the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.
Part 1 also implements other income tax measures referred to in the January 27, 2009 Budget that either were themselves previously announced or flow directly from previously announced measures. In particular, it
(a) implements technical changes relating to specified investment flow-through trusts and partnerships and new tax rules to facilitate the conversion of these entities into corporations;
(b) contains amendments to take into account financial institution accounting changes;
(c) extends the general treatment of capital gains and losses on an acquisition of control of a corporation to gains and losses that result from fluctuations in foreign exchange rates in respect of debt denominated in foreign currency;
(d) enhances the carry-forward for investment tax credits;
(e) implements amendments relating to the computation of income, gains and losses of a foreign affiliate;
(f) implements amendments to the functional currency tax reporting rules;
(g) implements minor tax amendments relating to interprovincial allocation of corporate taxable income, the Wage Earner Protection Program and the Canada-United States tax treaty’s rules for cross-border pensions;
(h) provides for an extension of time for income tax assessments that are consequential to provincial reassessments;
(i) ensures the appropriate application of the Income Tax Act’s trust rules to certain arrangements and institutions under Quebec civil law;
(j) enacts regulatory amendments relating to prescribed amounts for automobile expenses and benefits, eligible medical expenses, and the tax treatment of foreign affiliate active business income earned in a jurisdiction with which Canada has concluded a tax information exchange agreement;
(k) introduces rules to reduce the required minimum amount that must be withdrawn from a Registered Retirement Income Fund or from a variable benefit money purchase pension plan by 25% for 2008, and allows related re-contributions;
(l) extends the deadline for Registered Disability Savings Plan contributions; and
(m) modifies the provisions relating to amateur athletic trusts.
Part 2 amends the Excise Act, 2001 and the Excise Tax Act to implement measures to reduce the paper burden on businesses by allowing a larger number of government entities to share Business Number-related information in connection with government programs and services.
Part 3 amends the Customs Tariff to implement measures announced in the January 27, 2009 Budget to
(a) reduce Most-Favoured-Nation rates of duty and, if applicable, rates of duty under other tariff treatments on a number of tariff items relating to machinery and equipment imported on or after January 28, 2009;
(b) divide tariff item 9801.10.00 into two separate tariff items pertaining to conveyances and containers, respectively, and make two technical corrections, effective January 28, 2009; and
(c) modify the tariff treatment of milk protein substances, effective September 8, 2008.
Part 4 amends the Employment Insurance Act until September 11, 2010 to extend regular benefit entitlements by five weeks. It also provides that a pilot project ceases to have effect. In addition, it amends that Act to provide that the cost of benefit enhancement measures under that Act, provided for in the budget tabled in Parliament on January 27, 2009, are not to be charged to the Employment Insurance Account. Finally, it sets the premium rate provided for under that Act for the years 2002, 2003, 2005 and 2010.
Division 1 of Part 5 amends the Financial Administration Act to authorize the Minister of Finance to take, subject to certain conditions, a number of measures intended to promote the stability or maintain the efficiency of the financial system, including financial markets, in Canada.
Division 2 of Part 5 amends the Canada Deposit Insurance Corporation Act to provide the Canada Deposit Insurance Corporation with greater flexibility to enhance its ability to safeguard financial stability in Canada. The Division also adds Tax-Free Saving Accounts as a distinct category for the purposes of deposit insurance. It also makes consequential amendments to other acts.
Division 3 of Part 5 amends the Export Development Act to, among other things, expand the Export Development Corporation’s mandate to include the support and development of domestic trade and business opportunities for a period of two years. The period may be extended by the Governor in Council. Division 3 also increases the Corporation’s authorized capital.
Division 4 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada.
Division 5 of Part 5 amends the Canada Small Business Financing Act to increase the maximum outstanding loan amount in relation to a borrower. It also increases individual lenders’ cap on claims. These amendments will apply to new loans made after March 31, 2009.
Division 6 of Part 5 amends a number of Acts governing federal financial institutions to improve access to credit and strengthen the financial system in Canada, including amendments that will
(a) provide new authority for further safeguards to promote the stability of the financial system;
(b) enhance consumer protection by establishing new measures to help consumers of financial products; and
(c) implement other technical measures to strengthen the financial sector framework in Canada.
Division 7 of Part 5 provides for payments to be made to provinces and territories, provides authority to the Minister of Finance to enter into agreements respecting securities regulation with provinces and territories and enacts the Canadian Securities Regulation Regime Transition Office Act.
Part 6 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes, including infrastructure and housing.
Part 7 amends Part I of the Navigable Waters Protection Act to create a tiered approval process for works in order to streamline the approval process and to exclude certain classes of works and works on certain classes of navigable waters from the approval process. This Part further amends Part I of the Act to clarify the scope of the application of that Part to works owned or previously owned by the Crown, to provide for the application of the Act to bridges over the St. Lawrence River and to add certain regulation-making powers.
Part 7 also amends the Act to clarify the provisions related to obstacles and obstructions to navigation. The Act is also amended by adding administration and enforcement powers, consolidating all offence provisions, increasing fines and requiring a review of the Act within five years of the amendments coming into force.
Division 1 of Part 8 amends the Wage Earner Protection Program Act and the Wage Earner Protection Program Regulations to provide that unpaid wages for which an individual may receive payment under the Wage Earner Protection Program include unpaid severance pay and termination pay.
Division 2 of Part 8 amends the Canada Student Financial Assistance Act to, among other things,
(a) require the Chief Actuary of the Office of the Superintendent of Financial Institutions to report on financial assistance provided under that Act; and
(b) authorize the Minister of Human Resources and Skills Development to suspend or deny financial assistance to all those who are qualifying students in respect of a designated educational institution.
Division 2 of Part 8 also amends both the Canada Student Financial Assistance Act and the Canada Student Loans Act to, among other things,
(a) terminate all obligations of a borrower with respect to risk-shared loans and guaranteed loans if the borrower dies;
(b) authorize the Minister of Human Resources and Skills Development to require any person who has received financial assistance or a guaranteed student loan to provide that Minister with documents or information for the purpose of verifying compliance with those Acts; and
(c) authorize that Minister to terminate or deny financial assistance in certain circumstances.
Division 3 of Part 8 amends the Financial Administration Act to provide express authority for agent Crown corporations to lease their property, restrict the appointment of employees of a Crown corporation to its board of directors, require Crown corporations to hold annual public meetings, clarify Treasury Board’s duties to indemnify Crown corporation directors and officers, permit more flexibility in the frequency of special examinations of Crown corporations, and require the reports of special examinations to be submitted to the appropriate Minister and Treasury Board and made public. This Division also makes consequential amendments to other Acts.
Part 9 amends the Federal-Provincial Fiscal Arrangements Act to set out the amount of the fiscal equalization payments to the provinces for the fiscal year beginning on April 1, 2009 and amends the method by which fiscal equalization payments will be calculated for subsequent fiscal years. It also amends the method by which the Canada Health Transfer is calculated for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014.
Part 10 enacts the Expenditure Restraint Act. The purpose of that Act is to put in place a reasonable and an affordable approach to compensation across the federal public sector in support of responsible fiscal management in a difficult economic environment.
It sets out rules governing economic increases to the rates of pay of unionized and non-unionized employees for periods that begin during the period that begins on April 1, 2006 and ends on March 31, 2011. It also continues certain other terms and conditions at their current levels. It preserves the right of collective bargaining with regard to other matters and it does not affect the right to strike.
The Act does not preclude the continued development of workplace improvements by employers and employees’ bargaining agents through the National Joint Council or other bodies that they may agree on. It also permits bargaining agents and employers to agree to the amendment of certain terms and conditions of collective agreements or arbitral awards.
Part 11 enacts the Public Sector Equitable Compensation Act and makes consequential amendments to other Acts. The purpose of the Act is to ensure that proactive measures are taken to provide employees in female predominant job groups with equitable compensation.
It requires public sector employers that have non-unionized employees to determine periodically whether any equitable compensation matters exist in the workplace and, if so, to prepare a plan to resolve them. With respect to public sector employers that have unionized employees, the employers and the bargaining agents are to resolve those matters through the collective bargaining process.
It sets out the procedure for informing employees as to whether an equitable compensation assessment was required to be conducted and, if so, how it was conducted, and how any equitable compensation matters were resolved. It also establishes a recourse process for employees if the Act is not complied with.
Finally, since the Act puts in place a comprehensive equitable compensation scheme for public sector employees, this Part amends the Canadian Human Rights Act so that the provisions of that Act dealing with gender-based wage discrimination no longer apply to public sector employers. It extends the mandate of the Public Service Labour Relations Board to allow it to hear equitable compensation complaints and to provide other services related to equitable compensation in the public sector.
Part 12 amends the Competition Act. The amendments include
(a) introducing a dual-track approach to agreements between competitors, with a limited criminal anti-cartel provision and a civil provision to address other agreements that substantially lessen or prevent competition;
(b) providing that bid-rigging includes agreements or arrangements to withdraw bids or tenders;
(c) repealing the provisions dealing with price discrimination and predatory pricing, replacing the criminal resale price maintenance provision with a new civil provision to address price maintenance practices that have an adverse effect on competition, and repealing all provisions dealing specifically with the airline industry;
(d) introducing an administrative monetary penalty for cases of abuse of dominant position, increasing the maximum amount of administrative monetary penalties for deceptive marketing cases, and increasing the maximum fines or terms of imprisonment, or both, for agreements or arrangements between competitors, bid-rigging, criminal false or misleading representations, deceptive telemarketing, deceptive notice of winning a prize, obstruction of Competition Bureau investigations and failure to comply with prohibition orders or production orders;
(e) clarifying that, in proceedings under section 52, 74.01 or 74.02, it is not necessary to establish that false or misleading representations are made to the public in Canada or are made in a place to which the public has access, and clarifying that the “general impression test” applies to all deceptive marketing practices in sections 74.01 and 74.02;
(f) providing that the court may make an order in respect of cases of false or misleading representations to require the person who engaged in the conduct to compensate persons affected by the conduct, and may issue an interim injunction to freeze assets if the Commissioner of Competition intends to ask for such a compensation order; and
(g) introducing a two-stage merger review process for notifiable transactions, increased merger pre-notification thresholds and a reduced merger review limitation period.
Part 13 amends the Investment Canada Act so that the review of an investment will be applied only to the more significant investments. It also amends the Act to allow more information to be made public. This Part also provides for the review of foreign investments in Canada that could threaten national security and allows the Governor in Council to take any measures that the Governor in Council considers advisable to protect national security, such as prohibiting a non-Canadian from implementing an investment.
Part 14 amends the Canada Transportation Act to provide the Governor in Council with flexibility to increase the foreign ownership limit from the existing levels to a maximum of 49%.
Part 15 amends the Air Canada Public Participation Act in relation to the mandatory provisions in the articles of Air Canada regarding constraints imposed on the issue, transfer and ownership of shares. It provides for the repeal of the provisions requiring that the articles of Air Canada contain provisions imposing limits on non-resident share ownership and the repeal of the provisions requiring that the articles of Air Canada contain provisions respecting the enforcement of these constraints.

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-10s:

C-10 (2022) Law An Act respecting certain measures related to COVID-19
C-10 (2020) An Act to amend the Broadcasting Act and to make related and consequential amendments to other Acts
C-10 (2020) Law Appropriation Act No. 4, 2019-20
C-10 (2016) Law An Act to amend the Air Canada Public Participation Act and to provide for certain other measures
C-10 (2013) Law Tackling Contraband Tobacco Act
C-10 (2011) Law Safe Streets and Communities Act

Votes

March 4, 2009 Passed That the Bill be now read a third time and do pass.
March 4, 2009 Passed That this question be now put.
March 3, 2009 Passed That Bill C-10, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 394.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 383.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 358.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 317.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 445.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 295.
March 3, 2009 Failed That Bill C-10 be amended by deleting Clause 6.
Feb. 12, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Feb. 12, 2009 Passed That this question be now put.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:20 p.m.

NDP

Judy Wasylycia-Leis NDP Winnipeg North, MB

Thank you, Madam Speaker. Obviously the truth hurts.

What the Liberals are doing, propping up the Conservatives and in the process eliminating pay equity in this country, is a shame. I will stand in this House every minute of every hour to say shame on the Liberals and shame on the Conservatives for allowing the death of pay equity today. That is what will happen unless those Liberals clue in to what is really at stake here. This is not a side issue. This is not a hot-button issue. This a fundamental human right.

The member for Oshawa can stand all he wants and pretend that we are blowing things out of proportion and that it is really not the case. Well, when it comes to pay equity, he just has to listen to every expert in this country and every organization that deals with human rights to know that what his government is doing and what his Prime Minister has set out to do and is accomplishing today is to kill a fundamental human right, the right to be able to take a complaint or a concern about whether a woman is receiving equal pay for work of equal value to a higher body to ensure that she is able to obtain justice. That is a fundamental issue in this country.

I do not understand the Liberals. It is what Pierre Trudeau fought for years ago. Civil liberties and the charter are at the heart of everything we stand for in this place. I cannot understand how any Liberal can sit there today and smirk and try to suggest that this is a hot-button issue when we are dealing with something so basic, so fundamental. This is the darkest day I have yet experienced in the 20 years I have been in elected political life. I cannot understand how anybody can sit here and not stand and say that we will not let this happen.

In fact, the Liberals could have done so. They said they could not because this section of the budget implementation bill was deemed to be a matter of confidence by the Conservatives, and they had made this foolish commitment to prop up the Conservatives no matter what.

When they realized what the Conservatives were really doing and how they had trapped them and cornered them into supporting a budget that was not only far from adequate in terms of the question of dealing with the recession but was also filled with all kinds of poison pills, such as the destruction of pay equity, the elimination of environmental assessments when it comes to navigable waters, and more, the Liberals should have realized what was happening to them and found a way around it.

In fact, I dare say that if the Liberals had stood up to the Conservatives and said that they wanted to see this section on pay equity removed from the budget bill, set aside, and dealt with separately, the Conservatives would never have come back and said that it was all confidence and that if the Liberals didn't like it, they were going to go to the polls and to the Canadian people on a platform of eliminating pay equity. I do not think so.

I think the Liberals just lack the guts and the gumption and the courage to stand up for their principles, as has been the case for Liberals over the last 20 to 30 years that I have been around.

I may get very heated in these debates. I may express some very emotional feelings, but that is what is at stake here. This is not just a fly-by-night issue. This is not just some sideline. This is not a frivolous matter. This is not a soft social policy issue. This is fundamental justice. This is human rights. This is pay equity.

This is something we fought for in this country and achieved more than 30 years ago. In 1977, the women's movement had documented systemic discrimination in this country and had clearly shown that the only way to deal with that discrimination and to eliminate pink-job ghettos was to move toward a concept of equal pay for work of equal value. We could compare jobs dominated by men and jobs dominated by women and find a way to balance the equation.

It is a simple concept.

What do the Conservatives want? They want to take us back to the 1950s, when equal pay for equal work was the dominant way, the only way, that people compared men's and women's jobs and dealt with the wage gap.

When I started off working in this area 30 years ago, the wage gap at that time was that a woman made about 55¢ for every dollar a man made. As a result of work in this country on equal pay for work of equal value, we have been able to get that up to about 70¢.

In a province like Manitoba, which has a pervasive program of equal pay for work of equal value, we are well above 90 cents for every dollar that a man makes. We can see what a difference it makes.

We are talking about economic security for women. We are talking about bread-and-butter issues. We are talking about the ability of women to be paid what they are worth so that they can contribute to the economy, can actually ensure that their families are cared for, and can grow the economy and be a part of it. That is what we are talking about.

This is not some airy-fairy academic issue that has no bearing on real life. It is bread and butter. It is about the right of women to earn what they are worth. For the government to take this away is an absolute abomination. It makes no sense. The way it is turning the clock back to the 1950s is absolutely deplorable. I presume this fits with its ideological agenda, along with the Prime Minister who called pay equity a rip-off, who called this a stupid idea that should be gotten rid of.

The Conservatives over there, especially the President of the Treasury Board, stand up and try to tell me that what they are doing is much better and that they are going to make this happen for women.

How does that explain the nurses in the federal system, who just won their case before the Canadian Human Rights Commission? They would not have won if we did not have that provision. How is it that justice will be served if there is no avenue at all for women to pursue their rights under the charter, a fundamental right that I thought we all believed in?

Maybe we really are dealing with a group of Conservatives who, along with Tom Flanagan, believe pay equity really is one of those bad ideas that has to be gotten rid of, as he said, along with “big hair and polyester leisure suits and Petro-Canada”. Is that what these Conservatives believe? Is that why they are doing it?

I can think of no other reason, because it is not a cost savings. In fact, because they are breaching a fundamental right in society today, there will be challenge. There will be a challenge by women. There has to be one, to try to regain a right that has been taken away. It will cost the government millions of dollars to try to combat that challenge.

In the end the women will win. We will regain what has been taken away from us today, not because of the Liberals, not because we waited patiently for them to come to their senses, but because the women of this country will withstand this attack on their fundamental rights and freedoms and will decide to fight back.

We are not going to give up for one second. All my colleagues in this caucus, including our critic for the status of women who just spoke so eloquently, and all my other colleagues who believe passionately in this as a fundamental principle, will not sit idly by. My colleague, our finance critic, has spoken out on this issue in committee and in the House.

We will work together until we achieve that day when women once again will be treated with respect and dignity and will have access to the law for all their just rewards and their rights. We will ensure that pay equity and true equality reign supreme in Canada once again.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:25 p.m.

The Acting Speaker Denise Savoie

It being 5:30 p.m., pursuant to order made earlier today, the question on the previous question is deemed put and the recorded division is deemed to have been demanded.

Call in the members.

And the bells having rung:

(The House divided on the motion, which was agreed to on the following division:)

Vote #23

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

The Speaker Peter Milliken

I declare the motion carried.

The next question is on the motion that Bill C-10 be read a third time and passed.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

Conservative

Gordon O'Connor Conservative Carleton—Mississippi Mills, ON

Mr. Speaker, I believe that if you seek it you will find agreement to apply the vote on the previous motion to the motion now before the House with the Conservatives voting yes.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

The Speaker Peter Milliken

Is there unanimous consent to proceed in this fashion?

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

Some hon. members

Agreed.

No.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

The Speaker Peter Milliken

There is no consent.

Is it the pleasure of the House to adopt the motion?

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

Some hon. members

Agreed.

No.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

The Speaker Peter Milliken

All those in favour of the motion will please say yea.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

Some hon. members

Yea.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

The Speaker Peter Milliken

All those opposed will please say nay.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

Some hon. members

Nay.

Budget Implementation Act, 2009Government Orders

March 4th, 2009 / 5:55 p.m.

The Speaker Peter Milliken

In my opinion the yeas have it.

And five or more members having risen:

(The House divided on the motion, which was agreed to on the following division:)

Vote #24