Bill C-48 (Historical)

Technical Tax Amendments Act, 2012

An Act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation

Part 1 of this enactment implements, in accordance with proposals announced in the March 4, 2010 Budget and released for comment on August 27, 2010, amendments to the provisions of the Income Tax Act governing the taxation of non-resident trusts and their beneficiaries and of Canadian taxpayers who hold interests in offshore investment fund property.
Parts 2 and 3 implement various technical amendments in respect of the Income Tax Act and the Income Tax Regulations relating to the taxation of Canadian multinational corporations with foreign affiliates. The amendments in Part 2 are based on draft proposals released on December 18, 2009. Among other things, Part 2 includes the amendments to the foreign affiliate surplus rules in the Income Tax Regulations that are consequential to the foreign affiliate changes to the Income Tax Act announced in the March 19, 2007 Budget. The amendments in Part 3 are based on draft proposals released on August 19, 2011. Among other things, Part 3 includes revisions to the measures proposed in a package of draft legislation released on February 27, 2004 dealing primarily with reorganizations of, and distributions from, foreign affiliates.
Part 4 deals with provisions of the Income Tax Act that are not amended in Parts 1, 2, 3 or 5 in which the following private law concepts are used: right and interest, real and personal property, life estate and remainder interest, tangible and intangible property and joint and several liability. It enacts amendments, released for comments on July 16, 2010, to ensure that those provisions are bijural, in other words, that they reflect both the common law and the civil law in both linguistic versions. Similar amendments are made in Parts 1, 2, 3 and 5 to ensure that any provision of the Act enacted or amended by those Parts are also bijural.
Part 5 implements a number of income tax measures proposed in the March 4, 2010 Budget and released for comment on May 7, 2010 and August 27, 2010. Most notably, it enacts amendments
(a) relating to specified leasing property;
(b) to provide that conversions of specified investment flow-through (SIFT) trusts and partnerships into corporations are subject to the same loss utilization restrictions as are transactions between corporations;
(c) to prevent foreign tax credit generators; and
(d) implementing a regime for information reporting of tax avoidance transactions.
Part 5 also implements certain income tax measures that were previously announced. Most notably, it enacts amendments announced
(a) on January 27, 2009, relating to the Apprenticeship Completion Grant;
(b) on May 3, 2010, to clarify that computers continue to be eligible for the Atlantic investment tax credit;
(c) on July 16, 2010, relating to technical changes to the Income Tax Act which include amendments relating to the income tax treatment of restrictive covenants;
(d) on August 27, 2010, relating to the introduction of the Fairness for the Self-Employed Act;
(e) on November 5, 2010 and October 31, 2011, relating to technical changes to the Income Tax Act;
(f) on December 16, 2010, relating to changes to the income tax rules concerning real estate investment trusts; and
(g) on March 16, 2011, relating to the deductibility of contingent amounts, withholding tax applicable to certain interest payments made to non-residents, and certain life insurance corporation reserves.
Finally, Part 5 implements certain further technical income tax measures. Most notably, it enacts amendments relating to
(a) labour-sponsored venture capital corporations;
(b) the allocation of income of airline corporations; and
(c) the tax treatment of shares owned by short-term residents.
Part 6 amends the Excise Tax Act to implement technical and housekeeping amendments that include relieving the goods and services tax and the harmonized sales tax on the administrative service of collecting and distributing the levy on blank media imposed under the Copyright Act announced on October 31, 2011.
Part 7 amends the Federal-Provincial Fiscal Arrangements Act to clarify, for greater certainty, the authority of the Minister of Finance and of the Minister of National Revenue to amend administration agreements if the change in question is explicitly contemplated by the language of the agreement and to confirm any amendments that may have been made to those agreements. Part 7 also amends the Federal-Provincial Fiscal Arrangements Act and the First Nations Goods and Services Tax Act to enable the First Nations goods and services tax, imposed under a tax administration agreement between the federal government and an Aboriginal government, to be administered through a provincial administration system, if the province also administers the federal goods and services tax.
Part 8 contains coordinating amendments in respect of those provisions of the Income Tax Act that are amended by this Act and also by the Jobs and Growth Act, 2012 or that need coordination with the Pooled Registered Pension Plans Act.

Economic Statement Implementation Act, 2020

[Ted Falk, Conservative, Provencher, MB]

Mr. Speaker, it is a novel sensation to rise in the House today to speak to Bill C-14, for several reasons. First, it is always a tremendous privilege to rise in the House, even though it is not as populated as it has been in the past, to represent the constituents of Provencher and speak to the issues of the day regarding this great country of Canada. Second, it is novel to speak to an economic statement that does not typically lead to legislation. This is an unusual speech in that respect.

Third, this marks the very first meaningful budget-like document that the Liberals have produced since 2019, almost 650 days ago. To be sure, this is not a budget. However, I am grateful to have the opportunity to address Bill C-14 given the fact that the Liberals have flat out refused to present a budget since 2018.

I am a member of the Standing Committee on Finance, which is just now concluding its pre-budget consultations and entering the drafting stage of the report. It is now time for the committee to review the recommendations from Canadians, and to consolidate into the report all the needs that have been identified by Canadians from coast to coast to coast to present to the finance minister. My hope is that the Minister of Finance will take this process seriously, that her response will be thoughtful and that she will come up with a realistic plan for our nation's finances.

Conservatives have been clear right from the beginning that we want to make sure that Canadians struggling as a result of COVID-19 have the support they need. We recognize the challenges that so many are facing, including those of us living under stringent public health restrictions that have dramatically impacted our well-being. The government has a duty not only to help Canadians get through the crisis, but to develop a plan to help us get out of it. I said earlier today in the House that it seems as though the government has no plan, and failing to plan is planning to fail.

It is perfectly fair for governments to react quickly when faced with a crisis. One cannot get everything right when trying to sort out something new and unexpected on the fly. However, a year has now passed since COVID-19 came on Canada's radar in a real way. By now, the government has had plenty of time to prepare a solid, long-term plan for Canada's economy. By now, we know where the damage is most significant. We know who is hurting, and with this knowledge comes the power to plan for the future: to show Canadians a way out and a plan for things to return to normal.

One tangible way that the Liberals could do this immediately is by setting a fiscal anchor. A fiscal anchor is driven by rock-solid foundation principles and will be an anchor or reference point to hold things together and provide stability on which we can establish policies. The principles of financial anchors are missing from the Liberal government.

The Business Council of Canada defines fiscal anchors as follows:

...notional ceilings or caps to the levels of public spending, deficits, and debt that governments are prepared to reach in their fiscal policy. They serve many purposes including:

1 Retaining the confidence of lenders and global markets...;

2 Establishing a positive investment climate for businesses;

3 Providing a measure of fiscal discipline inside government...; and

4 Ensuring that the government has the ability to respond to future economic shocks and unforeseen crises.

In practical terms, this is about creating good jobs for Canadians. It is about creating the conditions for local small businesses to succeed and thrive. It is about moms and dads being able to put food on the table for their families. However, it is also about governments being able to sustainably fund the social services that many rely on: health care, education and the social safety net. Fiscal responsibility, or a fiscal anchor, signals to Canadians that the government is not merely acting for its own immediate interests today, but for the good of the country and its future.

Former parliamentary budget officer Kevin Page told the National Post in October, “There’s a cost to having effectively no fiscal plan. And right now it’s fair to say we have no fiscal strategy.” He added, “This is about where the government’s rudder is. Where is the policy strategy that guides us through the pandemic, and to the post COVID-19 recovery? We’re missing that.”

In a November piece for The Globe and Mail, Mostafa Askari, Sahir Khan and Mr. Page write:

All governments need constraints. Politicians do not like to raise taxes. There is a bias toward deficits. Higher debt can create the risk of future economic instability. It can reduce fiscal room to address the next economic downturn. Constraints also signal future policy intentions of governments and are essential to promote accountability.

The Liberals' refusal to adopt a fiscal anchor is such that they continue to avoid accountability for their spending. We are facing a historic deficit of almost $400 billion. The total federal debt will reach $1.1 trillion this year, and the federal debt, as a percentage of GDP, has risen dramatically. If ever Canadians deserved transparency and accountability, now is the time.

With this in mind, I want to speak about part 7 of the bill. In this section of the legislation, the Liberals propose to amend the Borrowing Authority Act and the Financial Administration Act by increasing maximum borrowing authority for the federal government of Canada from $1.1 trillion to $1.8 trillion. Even as someone with years of experience in the financial sector, those figures seem very daunting to me. This increase is considerably more than the government needs to get through this next fiscal year. Moreover, it authorizes a massive expansion of the national debt all while the government refuses to identify a fiscal anchor and refuses transparency.

If the Liberals were swiping their own personal credit cards during these transactions, it would be one thing, but they are swiping the nation's credit card, knowing full well that hard-working Canadians will ultimately be stuck with a bill that will likely have to be paid through tax increases and will be passed on to future generations. This is money out of the pockets of real people, real families, and not just this generation.

Young parents trying to set aside money for their children's education, small business owners trying to meet payroll for employees and seniors on fixed incomes will all be affected by this increase to our national debt.

In the real world, when Canadians want to obtain a line of credit they have to show the lender that they are good for it. They have to show they will be able to make payments. They have to show that they are responsible stewards of the money that is being lent to them. That is how the three Cs of credit work: character, collateral and capacity. I, for one, do not see why the House should authorize such a significant increase of the government's maximum borrowing authority when it cannot even establish a baseline for its spending. Liberals have not demonstrated the ability to be responsible for increased debt.

This is about taking care of Canadians today and tomorrow. We owe it to future Canadians to ensure our public finances are sustainable. Debt is a moral issue: It is something that is owed to one by another with the understanding that what is owed must be paid back. This is a basic principle, and one that is almost universally understood within the context of business, finance and even personal relationships. If we borrow money from the bank to finance the purchase of a home or vehicle, there is an understanding and a binding agreement as to how and when that loan will be paid back. The borrower is taking on that debt, and with it the responsibility to repay the amount borrowed from the lender. A commitment has been made to restore the financial situation of the lender. The refusal or failure to do so will result in penalties, or at the very least adverse effects to the credit and financial well-being of the borrower.

To borrow without the ability or a clear plan to repay is foolish. While in our culture some debt is usually unavoidable, it is a reality that most of us try to avoid it. We do not want to be in debt. We do not want to be enslaved to interest payments. We want to be free. The government does not have its own money, it only has the money that it receives from the taxation of its citizens. When it needs more money, the government only has three choices: raise taxes, cut spending or borrow.

As my colleague, the member for Carleton, has so succinctly put it, paycheques are the solution. Canadians need opportunities to work. This puts food on their tables and produces tax revenue governments need to provide important services. It is time that the Liberals focus on creating opportunities for Canadians. There are many ways to achieve that objective. Stop raising taxes such as the carbon tax and the CPP payroll tax. Accelerate project permit application processing for infrastructure. Repeal Bill C-69 and Bill C-48. Ideas like these create space for a real recovery.

Let us pursue sustainability and fiscally responsible policies that get Canadians not just through this economic slump, but actually out of it.

Bill C-4—Time Allocation Motion

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, here we are again.

The government is using this procedure for the 58th time. That is unbelievable. This is the 58th time since the last election alone. The government is shattering all the records and the worst records at that. This government is obsessed with shutting down all debate.

Something to notice about this particular one, which I think makes the point as to why the Conservatives are so offline and so contrary to parliamentary rules and procedure, is that the bill they are rushing through under time allocation this time, which they had to rush through in the last stage of debate to get it to committee, was not looked at by the committee for three weeks.

The government hit the panic button in the House of Commons and shut down debate because it is such an urgent bill. We had to get to it right away. It was so vital to the economy, but of course, the finance committee did not look at it for the next 21 days.

A second piece of this time allocation, which is fascinating, is that the Conservatives make so many mistakes when they do this, when they shut down debate in Parliament. Bill C-4, which they are shutting down today, is there to make corrections to a previous bill that they rushed through Parliament, Bill C-60, which was making corrections to a previous bill that they rushed through Parliament, Bill C-48.

This is what the government does time and again. It keeps making these mistakes because it is in such a panic, yet it calls it good government and good order. It is not. It is bad legislation. It is bad process.

When is the government going to learn? This is no way to run a country.

Respecting Families of Murdered and Brutalized Persons Act

[James Bezan, Conservative, Selkirk—Interlake, MB]

Mr. Speaker, I appreciate the opportunity to reply to the comments that have been made in the House over the last two hours of debate. I want to thank those members who have spoken out in favour of my bill and the importance of it and how it stands up for victims and the re-victimization that they face every time they have to attend an unnecessary parole board hearing.

I have to take a great deal of exception with some of the statements that were made by members across the way, that this is a government bill. That is an insult to my staff, who have worked on this bill so diligently. It is an insult to the Library of Parliament researchers and drafters, who helped in the drafting process. I can tell members that those types of comments are not at all helpful to the overall decorum of this place when it is trying to minimize us as private members in bringing forward business.

As I said in my opening comments, the catalyst for going forward with this bill goes back to 2009, when I first started thinking about what was happening with the Tori Stafford case, with the capture of Michael Rafferty and Terri-Lynne McClintic and the overall result of having them sentenced to life imprisonment.

While that was taking place, we were listening to the Clifford Olson saga as he was dying in prison from cancer and all the stories about how he re-victimized the families of his victims over and over again by making them appear at these unnecessary parole board hearings.

It is important that we respect one another in this place. Making those types of comments that minimize our role in this chamber as being puppets for the government is deeply disturbing. At some point in time, I may be requesting an apology from the members who made those statements.

Some of the comments revolved around the constitutionality of Bill C-478. I can tell members that is a concern that I had. I wanted to ensure that if we were going to draft a bill, it was not going to be struck down by the courts under a charter challenge. It would give full power and discretion to the judges, to the judiciary, to make the decision whether or not they wanted to increase parole ineligibility from 25 years up to a maximum of 40 years. They would have the power, either through a jury process or on their own, to make a decision whether or not parole ineligibility could be anywhere between 25 and 40 years.

It is important to know that these are the most depraved and sadistic murderers in Canadian society. These are the people who go to jail and are never again released. I think that is something that we have to take special note of. This is not about stiffer penalties and more punishment, because these murderers never ever are given parole ineligibility. Also, to ensure that this bill was constitutional, I wanted to fashion it after Bill C-48, which passed in 2011 just before the last election. That bill was proven to be constitutional and charter-compliant and so I fashioned our bill after that process.

Now, as was pointed by some members here, that maybe it is not perfect in its terms because it was a private members' bill, it was drafted by Library of Parliament and my staff working together. We are willing to accept any amendments that would improve the technical aspects and the legality of Bill C-478.

I have also taken note that some people said that victims' rights groups are not supporting this bill. I can tell members that Victims of Violence, led by Sharon Rosenfeldt, supports this bill; that Yvonne Harvey and the Canadian Parents of Murdered Children support this bill; the Association of Families of Persons Assassinated or Disappeared supports this bill; and the Canadian Resource Centre for Victims of Crime supports this bill.

Also, I heard from the NDP members in the first hour of debate that this bill would violate international law. They kept talking about the Rome Statute. However, I can tell members that the Rome Statute of the International Criminal Court applies only to genocides, crimes against humanity, war crimes and the crime of aggression.

This is a domestic bill, domestic law, and the power completely lies with the country and Parliament can make these decisions.

To point out the hypocrisy of the NDP, it supported Bill C-48 in the last Parliament. Why would it not support this bill, which is fashioned in the same format as Bill C-48 and would even go further in addressing the most depraved, sadistic murderers who go out and abduct children, abduct individuals, sexually assault them and then violently murder them? Those are the people we want to ensure we address. We want to ensure that the families of those victims would not have to be re-terrorized by these horrific individuals.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, now that we have been sitting for a week under our Conservative government's plans for a harder-working, productive and orderly House of Commons, I would remind all hon. members of what we have been able to achieve since just Victoria Day.

Bill C-48, the technical tax amendments act, 2012, was passed at report stage and third reading. Bill C-49, the Canadian museum of history act, was passed at second reading. Bill C-51, the safer witnesses act, was passed at report stage and we started third reading debate, which we will finish tonight. Bill C-52, the fair rail freight service act was passed at report stage and, just moments ago, at third reading. Bill C-54, the not criminally responsible reform act, was passed at second reading. Bill C-60, the economic action plan 2013 act, No. 1, was reported back from committee yesterday.

Bill S-2, the family homes on reserves and matrimonial interests or rights act, was passed at report stage and we started third reading debate. Bill S-6, the first nations elections act, was debated at second reading. Bill S-8, the safe drinking water for first nations act, which was reported back to the House this morning by the hard-working and fast running member for Peace River, has completed committee. Bill S-10, the prohibiting cluster munitions act, was debated at second reading. Bill S-12, the incorporation by reference in regulations act, was debated at second reading. Bill S-13, the port state measures agreement implementation act, was debated at second reading. Bill S-14, the fighting foreign corruption act, was debated at second reading.

We will build on this record of accomplishment over the coming week.

This afternoon, as I mentioned, we will finish the second reading debate on Bill C-51. After that, we will start the second reading debate on Bill C-56, Combating Counterfeit Products Act.

Tomorrow morning, we will start report stage on Bill C-60, now that the hard-working Standing Committee on Finance has brought the bill back to us. After I conclude this statement, Mr. Speaker, I will have additional submissions for your consideration on yesterday's point of order.

After question period tomorrow, we will get a start on the second reading debate on Bill S-15, Expansion and Conservation of Canada’s National Parks Act. I am optimistic that we would not need much more time, at a future sitting, to finish that debate.

On Monday, before question period, we will debate Bill S-17, Tax Conventions Implementation Act, 2013, at second reading. In the afternoon, we will hopefully finish report stage consideration of Bill C-60, followed by Bill S-2 at third reading.

On Tuesday, we will return to Bill S-2 if necessary. After that, I hope we could use the time to pass a few of the other bills that I mentioned earlier, as well as the forthcoming bill on the Yale First Nation Final Agreement.

Wednesday, June 5 shall be the eighth allotted day of the supply cycle. That means we will discuss an NDP motion up until about 6:30 p.m. This will be followed by a debate on the main estimates. Then we will pass to two appropriations acts.

Next Thursday, I would like to return back to Bill C-60, our budget implementation legislation, so we can quickly pass that important bill for the Canadian economy.

Bill C-52—Time Allocation Motion

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, we are delighted to hear that the minister is unblocked, finally.

That said, I think this is the fourth time in four days that I have risen to criticize this process, something that now seems to be standard practice for this government. They bring in a gag order to end debate.

What the Minister is not saying is that in 2006, the Prime Minister prorogued the House because he was about to be clobbered by the opposition parties. Such actions tend to derail bills. There were elections after that in 2008 and 2011.

Today, all of a sudden, on this beautiful May 29, we are told there is great urgency—in fact, we hear this every day. This is the fourth bill of its kind, and they are not trivial bills either.

There was Bill C-48, which dealt with all kinds of tax amendments, Bill C-49, meant to change the name and mandate of a museum, and Bill C-54, the Not Criminally Responsible Reform Act. These are not inconsequential bills.

Now we have Bill C-52 before us. I believe the cat was let out of the bag yesterday when a colleague of the minister rose to say that they were ultimately not interested in what people from the various ridings had to tell them. What interested them was what they, the Conservatives, had to say on those matters.

In their view, once we agree on a bill, we should be quiet, stay politely seated and not say another word because, in any case, they are not interested in what the people of Gatineau have to say, through their member, on the merits of the issue.

Only three hours were allotted for debate at third reading. That is appalling. It is a hijacking, not of a train, but of debate. It is shameful. For reasons unbeknownst to us, this is now part of this government's normal procedure.

I do not want to know whether the bill is good, since we are going to vote for it. I want to know why we are being compelled to do it this way. To date, the minister does not appear to want to give us an answer that is sensible and acceptable, at least for the people of Gatineau.

Canadian Museum of History Act

[The Speaker, Andrew Scheer]

I declare the amendment defeated.

There is a correction on the third reading vote at Bill C-48. The final result was yeas: 276; nays: 1.

The next question is on the main motion.

The hon. Chief Government Whip is rising on a point of order.

Bill C-48, Technical Tax Amendments Act, 2012

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, it is a great pleasure to speak to Canadians this evening on Bill C-48, which is a technical tax bill. We dealt with this bill at the finance committee. Bill C-48 is a very large piece of legislation that contains more than 1,000 pages and presents numerous technical tax changes to the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and other legislation.

I said these are technical tax changes. These are changes to the tax code that, in sum, will be revenue positive for Canadians. They generally move to discourage tax avoidance, which is a positive thing. All Canadians should pay their fair share. The vast majority of the changes contained in Bill C-48 are already adopted in practice. Tax practitioners across the country are respecting these changes, which have already been announced by the government. Many have been in practice for several years, because there has not been a technical tax bill like Bill C-48 since 2001. Clearly, we are long overdue in terms of updating our tax legislation.

These changes have already been in place and taking effect for several years. What has not been in place are elements of the direct reporting that is required under Bill C-48, aspects of the compliance contained in this bill. Clearly, this bill is of massive scale. As I said, it consists of more than 1,000 pages of tax legislation, very technical, detailed tax changes. The scale of this bill clearly indicates that not only the current government but the previous government has been asleep at the wheel in terms of updating these changes on a regular basis.

We have heard from tax practitioners across the country who have said it creates confusion and uncertainty generally for Canadians and it is particularly difficult for businesses that are trying to do tax planning when they do not have the certainty of these tax changes taking place in law. Clearly, the government has been falling down on the job by not updating the tax legislation on a regular basis. We do not want this uncertainty, but it has also created a bill of great scale—as I said, 1,000 pages of technical tax changes. Tax specialists went before the finance committee and said there are some changes that are so detailed and arcane that they had difficulty understanding them, yet the finance committee had very limited time to study these changes and once again the government has put time allocation in the House to limit the amount of time to study and debate something so complex.

We want to emphasize the importance of focusing on compliance in this bill in order to ensure the integrity of our tax system. We would argue that we need to close unexpected tax loopholes in a timely manner. This bill would close unexpected loopholes, but it has taken more than a decade to do so. Clearly, the Conservatives are not doing their job as government in making sure Canadians comply with tax legislation.

We want to point out the ever-growing complexity of the tax code and the need for simplification of the tax code that needs to take place. I want to emphasize that the New Democrats on this side of the House believe in cracking down on tax avoidance and tax evasion. We had to fight hard to get the government to complete a study of tax evasion and tax havens that was begun by the previous government. If members can believe it, prior to the election in 2011, there was a study on tax havens that was almost completed. We have had to fight since the election in 2011 to get the government to complete that study.

Conservatives wanted to have more than 10 meetings to look at increasing charitable tax donations. They put a whole range of bills through the Standing Committee on Finance, but surprisingly, they did not want to study tax havens, tax evasion or tax avoidance. The government seems to at least say that it wants to focus on fixing the deficit the government has created, and that we face still, and that it wants to restore the books to balance. One would think that a government in that situation would be scrambling to close tax loopholes and to ensure that every bit of money salted away in tax havens and some islands where tax laws currently are not capturing that revenue could be tracked down.

However, we had to fight, and it was only this spring that we were able to drag the government, kicking and screaming, to a study of tax havens. We had very few meetings, by the way. We had far fewer sessions to study tax havens than we should have had. It is a disgrace. When we look at what is happening in the United Kingdom, in the U.S., large corporations have not been paying their fair share of taxes. Major companies, such as Starbucks, Amazon and Google, have been found in other countries to not be paying their fair share of taxes.

The government suddenly wants to scuttle away and not study these issues of corporate taxation. I say that the Conservatives are falling down on the job, but no fear, this side of the House will do a much better job after 2015.

The bill we are presented with and that we are debating this evening is more than 1,000 pages. It is definitely an omnibus bill. New Democrats have complained vigorously about the omnibus budget bills the government has put before the House and put before our finance company. They are Trojan Horse budget bills that have contained everything but the kitchen. We have been debating the inspector general of CSIS, the navigable waters act and first nations legislation. We have been debating all manner of legislation. Clearly the government has wanted to gut in every way possible environmental legislation. It has all come before the finance committee, as opposed to the appropriate committees, for study in the House. We have been vociferous in opposing the omnibus budget bills, which clearly are an affront to democracy and which Canadians have joined with us in opposing.

However, while this bill is an exceptionally large bill, the fact is that it is all on related subject matter. It is a detailed tax bill, and all of the provisions in it make technical tax changes, which clearly are related and are quite properly housed in one bill. However, again, I want to emphasize that the government has fallen down on the job by being asleep at the switch for over a decade and not presenting these technical tax changes in a more timely fashion.

Clearly, there was still tremendous work to do to create the system whereby these technical tax changes were put in place in a timely manner. I am sure that Canadians, who I am sure are listening, whose attention is gripped before the television, are understandably concerned about tax legislation, because Canadians work hard. We heard the Parliamentary Secretary to the President of the Treasury Board complain about having to be here at this hour of the evening, whereas Canadians are working hard across the country in manufacturing, the service sector, retail and all kinds of sectors across this country. They are hard at work, and they are sending their precious dollars to Ottawa in the form of taxes, and they want to be sure that all Canadians are paying their fair share of taxes.

Let me explain what happens to those Canadians who are watching this evening.

When changes are announced in budgets and other pieces of legislation, the Department of Finance issues what are called “comfort letters”. These letters give comfort to businesses and individuals that these changes are being brought into practice and are to be complied with even though the actual legislation has not yet been changed. The vast majority of these changes subsequently are adopted, and then the technical changes are later made as amendments to tax legislation and adopted as tax law.

As I said, the last technical tax bill was adopted in 2001, so Canadians quite rightly are concerned about the uncertainty that this delay has caused.

When the Conservative government was in power in 2009, the Auditor General raised concerns that there were at least 400 outstanding technical amendments that had not yet been put into legislation. Some 200 or so of these changes are contained in Bill C-48. Bravo; it is maybe a decade late, but bravo. Here they are.

The comfort letter process generally works well, but the Auditor General expressed in 2009, in the report that I previously referred to, that tax practitioners “expressed a need for the legislative changes that the comfort letters identified to be enacted.”

While the vast majority of these changes have already been announced in press releases, Department of Finance comfort letters and budgets over the last 11 years since the last technical bill was passed, the bill also contains a few previously unannounced measures, which we also support. I will not go into them because, as I have said, they are extremely detailed.

We have consulted with tax specialists and lawyers, who have indicated that the measures in Bill C-48 are overwhelmingly positive. They generally support these measures, and New Democrats on this side of the House support these as necessary technical tax changes.

However, I want to emphasize our concerns about the generally slow pace with which the government is legislating the technical changes found in the Department of Finance comfort letters. This is what we emphasized at the finance committee and what we have been emphasizing in the House of Commons, and it is what members opposite do not seem to understand and do not want to hear.

I want to emphasize the size of the bill. The bill contains more than 1,000 pages of very dense technical tax changes. It really indicates the long, slow, lapse of time between Bill C-48 and the last technical tax bill. This process definitely needs improvement, but the government clearly has presented no plan and refuses to answer the question of how it is going to improve this process.

We heard some testimony before the finance committee that Britain, for example, has a law that if technical tax amendments that are announced are not brought into law within one year, those amendments are null and void and have to be reintroduced. We heard others say that there may be a different way to deal with this need for timeliness in introducing technical tax changes.

What we felt was important was perhaps to change the Standing Orders for the House so that the finance committee would be required every year to hear a report from the Department of Finance on how many outstanding technical tax changes there were that had not yet been put into law. That seems like a very common sense proposal that would remind the finance committee, the Department of Finance and the Minister of Finance that they better do some housekeeping and get these technical tax changes into law on an annual basis.

We did have quite a bit of debate about whether we wanted to have a drop dead date whereby these changes had to be made. That is still an open question because we really did not have enough time to debate that measure fully.

I see my time is almost up. I am sorry about that. I appreciate the opportunity to be here this evening and to have the chance to debate this important issue on behalf of all Canadians.

Again, we support the changes that are being made, we disagree with being forced to limit the amount of time on debate of these important measures and we do, again, urge the government to put a measure or procedure in place that requires these changes to be made on a timely basis every year on behalf of all Canadians.

Bill C-54—Time Allocation Motion

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, I am not sure I should be thanking anyone. No more than an hour ago, I was rising in response to the 34th time allocation motion. Now here we are with another time allocation motion for Bill C-54.

I will not repeat what I said about Bill C-48. However, in the words of Captain Haddock “ten thousand thundering typhoons” that is quite the gang of “bashi-bazouk” across the way.

As far as Bill C-48 is concerned, I understood from the minister that it was extremely technical aspects that have been backlogged for over 10 years. Anyone who has read Bill C-54 knows that it is highly contested by experts in the field. I am talking about the Canadian Psychiatric Association and the Canadian Forensic Mental Health Network. Many people are questioning Bill C-54.

It is highly likely that the bill will ultimately pass, but we are only at second reading stage. The government is toying with extremely complex concepts having to do with mental disorders and being not criminally responsible. I think that 11 people at most have spoken on the subject, and the government is moving a time allocation motion.

I would like the Minister of Justice to say a few words about this to explain why the government thinks it is necessary to move a time allocation motion at this stage, when there has been no evidence of dilatory practice. I think that everyone has the right to speak to—

Bill C-48 — Time Allocation Motion

[Gail Shea, Conservative, Egmont, PE]

Mr. Speaker, I will remind this member that it was the NDP members who wanted to go home early last week. On this side of the House we come to work for Canadians.

On meeting the needs of Canadians, this bill has probably been more than 14 years in the making, so it is hardly rushing anything through. There has been a lot of public consultation on the bill, and it has been before Parliament for 200 days now.

Part of the bill would also close tax loopholes. What could the opposition possibly have against closing tax loopholes? When we collect tax owed by Canadians, we can fund the services that Canadians need to have, like schools, hospitals and other services that we provide for Canadians. Bill C-48 contains measures that would implement a more rigorous information reporting regime for certain transactions associated with schemes to avoid taxes. This, along with our budget this year, contains measures as well to crack down on tax evasion and tax avoidance. We certainly hope that the NDP will be supporting not just this bill, but our budget as well.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, I have a lot of questions for the minister. This is ridiculous. Here we have another time allocation motion for the bill to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation.

We are all very aware, as are Canadians, that the government is up to the same old tricks. We have stopped counting, but the number keeps climbing. The government has used this same method 34 or 35 times now. That is likely what it will be known for in years to come. It has already earned the title of the most undemocratic government Canada has ever had. It is all the more astounding and ridiculous given that these people were elected in 2006 by making Canadians believe that they would be transparent, open and not like previous governments. They promised a change in culture. They essentially signed an agreement, a contract, with the Canadian people.

What are they doing? They insist on staying the course and what is even worse is that they are doing the same thing they criticized previous Liberal governments for doing. What is going on here boggles my mind. We have a total of five hours to discuss some extremely important issues. If that is not considered muzzling, I do not know what is.

I have a very simple question for the minister. Is she not embarrassed to rise in the House and tell Canadians that what she is doing is democratic? She is muzzling democratically elected members of Parliament more often than is necessary, which prevents them from representing Canadians. I would be embarrassed if I were her.

[Gail Shea, Conservative, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency]

Mr. Speaker, I move:

That, in relation to Bill C-48, An Act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation, not more than five further hours shall be allotted to the consideration of the third reading stage of the Bill; and

that at the expiry of the five hours provided for 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.

Bill C-48--Notice of Time Allocation Motion

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I rise on a point of order. I would like to advise the House that agreement could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to third reading stage of Bill C-48, An Act to amend the Income Tax Act, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the First Nations Goods and Services Tax Act and related legislation.

Under the provisions of Standing Order 78(3) I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage of the said bill.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, as you know, our government has moved forward this week to conduct business in the House of Commons in a productive, orderly and hard-working fashion, and we have tried to work in good faith.

We began the week debating a motion to add an additional 20 hours to the House schedule each week. Before I got through the first minute of my speech on that motion, the hon. member for Skeena—Bulkley Valley interrupted with a dubious point of order to prevent the government from moving forward to work overtime. His was a bogus argument and the Speaker rightly saw the NDP delay effort as entirely devoid of merit and rejected it outright.

During its first speech opposing the motion to work hard, the NDP then moved an amendment to gut it. That amendment was defeated. The NDP then voted against the motion and against working overtime, but that motion still passed, thanks to the Conservatives in the House.

During the first NDP speech on Bill C-49 last night, in the efforts to work longer, the NDP moved an amendment to gut that bill and cause gridlock in the House. I am not kidding. These are all one step after another of successive measures to delay. During its next speech, before the first day of extended hours was completed, the NDP whip moved to shut down the House, to go home early. That motion was also defeated. This is the NDP's “do as I say, not as I do” attitude at its height.

Take the hon. member for Gatineau. At 4 p.m., she stood in the House and said, “I am more than happy to stay here until midnight tonight...”. That is a direct quote. It sounded good. In fact, I even naively took her at her word that she and her party were actually going to work with us, work hard and get things done. Unfortunately, her actions did not back up her words, because just a few short hours later, that very same member, the member for Gatineau, seconded a motion to shut down the House early.

I am not making this up. I am not kidding. She waited until the sun went down until she thought Canadians were not watching anymore and then she tried to prevent members from doing their work. This goes to show the value of the word of NDP members. In her case, she took less than seven hours to break her word. That is unfortunate. It is a kind of “do as I say, not as I do” attitude that breeds cynicism in politics and, unfortunately, it is all too common in the NDP.

We saw the same thing from the hon. member for Davenport, when he said, “We are happy to work until midnight...”, and two short hours later he voted to try to shut down the House early. It is the same for the hon. member for Algoma—Manitoulin—Kapuskasing and the hon. member for Drummond. They all professed an interest in working late and then had their party vote to shut down early. What is clear by their actions is that the NDP will try anything to avoid hard work.

It is apparent that the only way that Conservatives, who are willing to work in the House, will be able to get things done is through a focused agenda, having a productive, orderly and hard-working House of Commons. This afternoon, we will debate Bill C-51, the safer witnesses act, at report stage and third reading. After private members' hour, we will go to Bill S-12, the incorporation by reference in regulations act, at second reading.

Tomorrow before question period, we will start second reading of Bill S-14, the fighting foreign corruption act, and after question period, we will start second reading of Bill S-13, the port state measures agreement implementation act.

Monday before question period, we will consider Bill S-2, the family homes on reserves and matrimonial interests or rights act. This bill would provide protection for aboriginal women and children by giving them the same rights that women who do not live on reserve have had for decades. After question period, we will debate Bill C-54, the not criminally responsible reform act, at second reading, a bill that makes a reasonable and needed reform to the Criminal Code. We are proposing to ensure that public safety should be the paramount consideration in the decision-making process involving high-risk accused found not criminally responsible on account of mental disorder. It is time to get that bill to a vote. We will also consider Bill C-48, the technical tax amendments act, 2012—and yes, that is last year—at third reading.

On Tuesday, we will continue the debates on Bill C-48 and Bill C-49, the Canadian museum of history act.

On Wednesday, we will resume this morning's debate on Bill C-52, the fair rail freight service act, at third reading.

On Thursday, we will continue this afternoon's debate on Bill C-51. Should the NDP adopt a new and co-operative, productive spirit and let all of these bills pass, we could consider other measures, such as Bill S-17, the tax conventions implementation act, 2013, Bill C-56, the combating counterfeit products act, Bill S-15, the expansion and conservation of Canada’s national parks act, and Bill C-57, the safeguarding Canada's seas and skies act.

Optimism springs eternal within my heart. I hope to see that from the opposition.

Motion That Debate Be Not Further Adjourned

[Peter Van Loan, Conservative, York—Simcoe, ON]

Mr. Speaker, we always conduct ourselves with very high ethical standards. In this case, there is one very important ethic. It is called the work ethic. We on the Conservative side of the House believe very strongly in the work ethic. That is what we are seeking to advance here.

Let us talk about some of the important bills we are looking to have debated in advance as a result of the motion to extend hours here.

There is the technical tax amendments act, Bill C-48. This bill has been around for years. There is uncertainty in our economy and uncertainty among those who are functioning, because these changes have been put in place structurally but need to actually be cemented legislatively. It is about time we got on and did that.

There is the Canadian museum of history act. The bill would help us create relevant history for Canadians and respect for our Canadian national identity in a proper and full way. This is something that is very much overdue.

There is the safer witnesses act, Bill C-51. It is very important for us to provide changes to the Witness Protection Program Act if we want to have safer streets and communities. Why would anyone from any party want to resist having a bill like that debated? Why would they want to limit the amount of debate in this House so as to keep bills like that and the others from moving forward.

I will continue going down this list as we discuss this. These are very important priorities for Canadians, and that is why we are bringing in this motion to work a bit harder.

Extention of Sitting Hours

[Peter Van Loan, Conservative, York—Simcoe, ON]

Mr. Speaker, I will pick up where I left off. Obviously my hon. friend did not hear this and has not read the motion. I will respond to his macho riposte at the end of his comments by pointing out that the motion would do three things: first, it would provide for us to sit until midnight; second, it would provide a manageable way in which to hold votes in a fashion that works for members of the House; and third, it would provide for concurrence debates to happen and motions to be voted on in a fashion that would not disrupt the work of all the committees of the House and force them to come back here for votes and shut down the work of committees.

Those are the three things the motion would do. In all other respects the Standing Orders remain in place, including the Standing Orders for how long the House sits. Had my friend actually read the motion, he would recognize that the only way in which that Standing Order could then be changed would be by unanimous consent of the House.

The member needs no commitment from me as to how long we will sit. Any member of the House can determine that question, if he or she wishes to adjourn other than the rules contemplate, but the rules are quite clear in what they do contemplate.

As I was saying, the reason for the motion is that Canadians expect their members of Parliament to work hard and get things done on their behalf.

Canadians expect their members of Parliament to work hard and get things done on their behalf.

We agree and that is exactly what has happened here in the House of Commons.

However, do not take my word for it; look at the facts. In this Parliament the government has introduced 76 pieces of legislation. Of those 76, 44 of them are law in one form or another. That makes for a total of 58% of the bills introduced into Parliament. Another 15 of these bills have been passed by either the House or the Senate, bringing the total to 77% of the bills that have been passed by one of the two Houses of Parliament. That is the record of a hard-working, orderly and productive Parliament.

More than just passing bills, the work we are doing here is delivering real results for Canadians. However, there is still yet more work to be done before we return to our constituencies for the summer.

During this time our government's top priority has been jobs, economic growth and long-term prosperity. Through two years and three budgets, we have passed initiatives that have helped to create more than 900,000 net new jobs since the global economic recession. We have achieved this record while also ensuring that Canada's debt burden is the lowest in the G7. We are taking real action to make sure the budget will be balanced by 2015. We have also followed through on numerous longstanding commitments to keep our streets and communities safe, to improve democratic representation in the House of Commons, to provide marketing freedom for western Canadian grain farmers and to eliminate once and for all the wasteful and inefficient long gun registry.

Let me make clear what the motion would and would not do. There has been speculation recently, including from my friend opposite, about the government's objectives and motivations with respect to motion no. 17. As the joke goes: Mr. Freud, sometimes a cigar is just a cigar. So it is with today's motion. There is only one intention motivating the government in proposing the motion: to work hard and deliver real results for Canadians.

The motion would extend the hours the House sits from Monday through Thursday. Instead of finishing the day around 6:30 or 7 p.m., the House would sit instead until midnight.

This would amount to an additional 20 hours each week. Extended sitting hours is something that happens most years in June. Our government just wants to roll up our sleeves and work a little harder, earlier this year. The motion would allow certain votes to be deferred automatically until the end of question period, to allow for all honourable members' schedules to be a little more orderly.

As I said, all other rules would remain. For example, concurrence motions could be moved, debated and voted upon. Today's motion would simply allow committees to continue doing their work instead of returning to the House for motions to return to government business and the like. This process we are putting forward would ensure those committees could do their good work and be productive, while at the same time the House could proceed with its business. Concurrence motions could ultimately be dealt with, debated and voted upon.

We are interested in working hard and being productive and doing so in an orderly fashion, and that is the extent of what the motion would do. I hope that the opposition parties would be willing to support this reasonable plan and let it come forward to a vote. I am sure members opposite would not be interested in going back to their constituents to say they voted against working a little overtime before the House rises for the summer, but the first indication from my friend opposite is that perhaps he is reluctant to do that. Members on this side of the House are willing to work extra hours to deliver real results for Canadians.

Some of those accomplishments we intend to pass are: reforming the temporary foreign workers program to put the interests of Canadians first; implementing tax credits for Canadians who donate to charity; enhancing the tax credit for parents who adopt; and extending the tax credit for Canadians who take care of loved ones in their home.

We also want to support veterans and their families by improving the determination of veterans' benefits.

Of course, these are some of the important measures from this year's budget and are included in Bill C-60, economic action plan 2013 act, no. 1. We are also working toward results for aboriginals by moving closer to equality for Canadians living on reserves through better standards for drinking water and finally giving women on reserves the same rights and protections other Canadian women have had for decades. Bill S-2, family homes on reserves and matrimonial interests or rights act, and Bill S-8, the safe drinking water for first nations act would deliver on those very important objectives.

We will also work to keep our streets and communities safe by making real improvements to the witness protection program through Bill C-51, the safer witnesses act. I think that delivering these results for Canadians is worth working a few extra hours each week.

We will work to bring the Technical Tax Amendments Act, 2012, into law. Bill C-48 would provide certainty to the tax code. It has been over a decade since a bill like this has passed, so it is about time this bill passed. In fact, after question period today, I hope to start third reading of this bill, so perhaps we can get it passed today.

We will also work to bring Bill C-52, the fair rail freight service act, into law. The bill would support economic growth by ensuring that all shippers, including farmers, are treated fairly. Over the next few weeks we will also work, hopefully with the co-operation of the opposition parties, to make progress on other important initiatives.

Bill C-54 will ensure that public safety is the paramount consideration in the decision-making process involving high-risk accused found not criminally responsible on account of mental disorder. This is an issue that unfortunately has affected every region of this country. The very least we can do is let the bill come to a vote and send it to committee where witnesses can testify about the importance of these changes.

Bill C-49 would create the Canadian museum of history, a museum for Canadians that would tell our stories and present our country's treasures to the world.

Bill S-14, the Fighting Foreign Corruption Act, will do just that by further deterring and preventing Canadian companies from bribing foreign public officials. These amendments will help ensure that Canadian companies continue to act in good faith in the pursuit of freer markets and expanded global trade.

Bill S-13, the port state measures agreement implementation act, would implement that 2009 treaty by amending the Coastal Fisheries Protection Act to add prohibitions on importing illegally acquired fish.

Tonight we will be voting on Bill S-9, the Nuclear Terrorism Act, which will allow Canada to honour its commitments under international agreements to tackle nuclear terrorism. Another important treaty—the Convention on Cluster Munitions—can be given effect if we adopt Bill S-10, the Prohibiting Cluster Munitions Act.

We will seek to update and modernize Canada’s network of income tax treaties through Bill S-17, the Tax Conventions Implementation Act, 2013, by giving the force of law to recently signed agreements between Canada and Namibia, Serbia, Poland, Hong Kong, Luxembourg and Switzerland.

Among other economic bills is Bill C-56, the combating counterfeit products act. The bill would protect Canadians from becoming victims of trademark counterfeiting and goods made using inferior or dangerous materials that lead to injury or even death. Proceeds from the sale of counterfeit goods may be used to support organized crime groups. Clearly, this bill is another important one to enact.

Important agreements with the provinces of Nova Scotia and Newfoundland and Labrador would be satisfied through Bill S-15, the expansion and conservation of Canada’s national parks act, which would, among other things, create the Sable Island national park reserve, and Bill C-61, the offshore health and safety act, which would provide clear rules for occupational health and safety of offshore oil and gas installations.

Earlier I referred to the important work of committees. The Standing Joint Committee on the Scrutiny of Regulations inspired Bill S-12, the incorporation by reference in regulations act. We should see that committee's ideas through by passing this bill. Of course, a quick reading of today's order paper would show that there are yet still more bills before the House of Commons for consideration and passage. All of these measures are important and will improve the lives of Canadians. Each merits consideration and hard work on our part.

In my weekly business statement prior to the constituency week, I extended an offer to the House leaders opposite to work with me to schedule and pass some of the other pieces of legislation currently before the House. I hope that they will respond to my request and put forward at our next weekly meeting productive suggestions for getting things done. Passing today's motion would be a major step toward accomplishing that. As I said in my opening comments, Canadians expect each one of us to come to Ottawa to work hard, vote on bills and get things done.

In closing, I commend this motion to the House and encourage all hon. members to vote for this motion, add a few hours to our day, continue the work of our productive, orderly and hard-working Parliament, and deliver real results for Canadians.