Bill C-60 (Historical)

Economic Action Plan 2013 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures

Part 1 implements certain income tax measures proposed in the March 21, 2013 budget. Most notably, it
(a) allows certain adoption-related expenses incurred before a child’s adoption file is opened to be eligible for the Adoption Expense Tax Credit;
(b) introduces an additional credit for first-time claimants of the Charitable Donations Tax Credit;
(c) makes expenses for the use of safety deposit boxes non-deductible;
(d) adjusts the Dividend Tax Credit and gross-up factor applicable in respect of dividends other than eligible dividends;
(e) allows collection action for 50% of taxes, interest and penalties in dispute in respect of a tax shelter that involves a charitable donation;
(f) extends, for one year, the Mineral Exploration Tax Credit for flow-through share investors;
(g) extends, for two years, the temporary accelerated capital cost allowance for eligible manufacturing and processing machinery and equipment;
(h) clarifies that the income tax reserve for future services is not available in respect of reclamation obligations;
(i) phases out the additional deduction available to credit unions over five years;
(j) amends rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons; and
(k) repeals the rules relating to international banking centres.
Part 1 also implements other income tax measures and tax-related measures. Most notably, it
(a) amends rules relating to caseload management of the Tax Court of Canada;
(b) streamlines the process for approving tax relief for Canadian Forces members and police officers;
(c) addresses a technical issue in relation to the temporary measure that allows certain family members to open a Registered Disability Savings Plan for an adult individual who might not be able to enter into a contract; and
(d) simplifies the determination of the Canadian-source income of non-resident pilots employed by Canadian airlines.
Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 21, 2013 budget by
(a) reducing the compliance burden for employers under the GST/HST pension plan rules;
(b) providing the Minister of National Revenue the authority to withhold GST/HST refunds claimed by a business where the business has failed to provide certain GST/HST registration information;
(c) expanding the GST/HST exemption for publicly funded homemaker services to include personal care services provided to individuals who require such assistance at home;
(d) clarifying that reports, examinations and other services that are supplied for a non-health-care-related purpose do not qualify for the GST/HST exemption for basic health care services; and
(e) ending the current GST/HST point-of-sale relief for the Governor General.
Part 2 also amends the Excise Tax Act and Excise Act, 2001 to modify the rules regarding the judicial authorization process for imposing a requirement on a third party to provide information or documents related to an unnamed person or persons.
In addition, Part 2 amends the Excise Act, 2001 to ensure that the excise duty rate applicable to manufactured tobacco other than cigarettes and tobacco sticks is consistent with that applicable to other tobacco products.
Part 3 implements various measures, including by enacting and amending several Acts.
Division 1 of Part 3 amends the Customs Tariff to extend for ten years, until December 31, 2024, provisions relating to Canada’s preferential tariff treatments for developing and least-developed countries. Also, Division 1 reduces the rate of duty under tariff treatments in respect of a number of items relating to baby clothing and certain sports and athletic equipment imported into Canada on or after April 1, 2013.
Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to remove some residency requirements to provide flexibility for financial institutions to efficiently structure the committees of their boards of directors.
Division 3 of Part 3 amends the Federal-Provincial Fiscal Arrangements Act to renew the equalization and territorial formula financing programs until March 31, 2019 and to implement total transfer protection for the 2013-2014 fiscal year. That Act is also amended to clarify the time of calculation of the growth rate of the Canada Health Transfer for each fiscal year beginning after March 31, 2017.
Division 4 of Part 3 authorizes payments to be made out of the Consolidated Revenue Fund to certain entities or for certain purposes.
Division 5 of Part 3 amends the Canadian Securities Regulation Regime Transition Office Act to remove the statutory dissolution date of the Canadian Securities Regulation Regime Transition Office and to provide authority for the Governor in Council, on the Minister of Finance’s recommendation, to set another date for the dissolution of that Office.
Division 6 of Part 3 amends the Investment Canada Act to clarify how proposed investments in Canada by foreign state-owned enterprises and WTO investors will be assessed and to allow for the extension, when necessary, of timelines associated with national security reviews.
Division 7 of Part 3 amends the Canada Pension Plan to ensure that the Canada Revenue Agency can accurately identify, calculate and refund overpayments made to the Canada Pension Plan and the Quebec Pension Plan in a particular year by contributors who live outside Quebec.
Division 8 of Part 3 amends the Pension Act and the War Veterans Allowance Act to ensure that veterans’ disability benefits are no longer deducted when calculating war veterans allowance.
Division 9 of Part 3 amends the Immigration and Refugee Protection Act to authorize the revocation of temporary foreign worker permits, the revocation and suspension of opinions provided by the Department of Human Resources and Skills Development with respect to an application for a work permit and the refusal to process requests for such opinions. It authorizes fees to be paid for rights and privileges conferred by means of a work permit and exempts, from the application of the User Fees Act, those fees as well as fees for the provision of services in relation to the processing of applications for a temporary resident visa, work permit, study permit or extension of an authorization to remain in Canada as a temporary resident or in relation to requests for an opinion with respect to an application for a work permit.
It also provides that decisions made by the Refugee Protection Division under the Immigration and Refugee Protection Act in respect of claims for refugee protection that were referred to that Division during a specified period are not subject to appeal to the Refugee Appeal Division if they take effect after a certain date.
Division 10 of Part 3 amends the Citizenship Act to expand the Governor in Council’s authority to make regulations respecting fees for services provided in the administration of that Act and cases in which those fees may be waived. It also exempts, from the application of the User Fees Act, fees for services provided in the administration of the Citizenship Act.
Division 11 of Part 3 amends the Nuclear Safety and Control Act to authorize the Canadian Nuclear Safety Commission to spend for its purposes the revenue it receives from the fees it charges for licences.
Division 12 of Part 3 enacts the Department of Foreign Affairs, Trade and Development Act, sets out the powers, duties and functions of the Minister of Foreign Affairs, the Minister for International Trade and the Minister for International Development and provides for the amalgamation of the Department of Foreign Affairs and International Trade and the Canadian International Development Agency.
Division 13 of Part 3 authorizes the taking of measures with respect to the reorganization and divestiture of all or any part of Ridley Terminals Inc.
Division 14 of Part 3 amends the National Capital Act and the Department of Canadian Heritage Act to transfer certain powers, duties and functions to the Minister of Canadian Heritage from the National Capital Commission. It also makes consequential amendments to the National Holocaust Monument Act to change the Minister responsible for the construction of the monument to the Minister of Canadian Heritage from the Minister responsible for the National Capital Act.
Division 15 of Part 3 amends the Salaries Act to add ministerial positions for regional development responsibilities for northern Canada, and northern and southern Ontario. It also amends the Salaries Act to replace a reference to the Solicitor General of Canada with a reference to the Minister of Public Safety and Emergency Preparedness. It also makes an amendment to the Parliament of Canada Act to provide that the maximum number of Parliamentary Secretaries who may be appointed is equal to the number of ministers for whom salaries are provided in the Salaries Act.
Division 16 of Part 3 amends the Department of Public Works and Government Services Act to remove the requirement for the Minister of Public Works and Government Services to obtain a request from a government, body or person in Canada or elsewhere in order for the Minister to do certain things for or on their behalf. It also amends that Act to specify that the Governor in Council’s approval relating to those things may be given on a general or a specific basis.
Division 17 of Part 3 amends the Financial Administration Act to give the Governor in Council the authority to direct a Crown corporation to have its negotiating mandate approved by the Treasury Board for the purpose of the Crown corporation entering into a collective agreement with a bargaining agent. It also gives the Treasury Board the authority to require that an employee under the jurisdiction of the Secretary of the Treasury Board observe the collective bargaining between the Crown corporation and the bargaining agent. It requires that a Crown corporation that is directed to have its negotiating mandate approved obtain the Treasury Board’s approval before entering into a collective agreement. It also gives the Governor in Council the authority to direct a Crown corporation to obtain the Treasury Board’s approval before the Crown corporation fixes the terms and conditions of employment of certain of its non-unionized employees. Finally, it makes consequential amendments to other Acts.
Division 18 of Part 3 amends the Keeping Canada’s Economy and Jobs Growing Act to provide for increases to the sums that may be paid out of the Consolidated Revenue Fund for municipal, regional and First Nations infrastructure through the Gas Tax Fund. It also provides that the sums may be paid on the requisition of the Minister of Indian Affairs and Northern Development.

Economic Action Plan 2013 Act, No. 1

[The Deputy Speaker]

Before we go to questions and comments, the hon. government House leader.

The House resumed consideration of the motion that Bill C-60, An Act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures, be read the third time and passed, and of the amendment.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Mr. Speaker, although the Conservative government promised not to raise taxes, its 2013 budget contains several hidden tax hikes that will cost taxpayers dearly. The increased cost of parking at the Saint-Eustache hospital, which will rise to $7 per day, is a concrete example of this new policy. The Conservatives are putting a tax on illness by targeting the families who use the hospital. While the Conservatives' patronage gravy train is going full speed, they are penalizing Canadian families.

Would my Liberal colleague comment on that?

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Mr. Speaker, I will be pleased to do so.

Indeed, this is happening as well in the riding I have the honour to represent. There is a hospital in my riding, Montfort Hospital, that made headlines quite recently. A provincial Conservative government in Ontario tried to close it, but the community rose up and fought back. Those people not only saved the hospital, but also made it twice as large and improved it. However, anyone who uses this hospital will have to pay another hidden tax.

Ultimately, this is not where the real problem lies. I understand that government must have sources of income, but the problem with the Conservatives is their lack of transparency and honesty towards Canadians. They even lost one of their own this week, a member who decided to leave because of their lack of transparency.

When a government is committed to being honest, it must tell taxpayers that it needs to raise government revenues and explain how it will go about it. We understand that not too many people want to pay more taxes, but the government must be honest and admit to what it is doing with its budget.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I thank my colleague for his speech.

When he spoke about credit unions, he spoke mainly about their size, which corresponds to their value and their revenues.

However, there is another factor that is also important. It applies particularly to caisses populaires, among others. According to the model, the transactions are carried out only by the caisses populaires and not the federations. That means that the taxes will not necessarily apply to the federation, but to the small caisses populaires. The latter will have to do all the additional paperwork.

What does my colleague think of that situation?

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Mr. Speaker, the member for Louis-Hébert is absolutely right.

I did talk primarily about credit unions, but what I said applies to caisses populaires as well. I am not talking about Desjardins Group; I am talking about caisses populaires. I belong to one of them, a small one that will have to pay more taxes. Nobody consulted my caisse. In fact, it found out about this on the news because the government is not interested in consulting people when it knows they will not say what it wants to hear.

My caisse is in a big city, but I know that there are a lot of small towns in northern and eastern Ontario, across Quebec and throughout regions that are far from major centres where the only financial institution is a caisse. I would not be surprised if some of them have to close their doors because of this tax hike. Small Canadian communities are in danger of losing access to local financial services because the government did not talk to anyone about its decision to hypocritically—yes, hypocritically—cover up the fact that it is just trying to boost its revenues.

The government is justifying the fact that it did not have the decency to consult people by saying that it is trying to level the playing field between banks and caisses populaires. That is hogwash. I looked at the numbers. Caisses and credit unions are not even on the same playing field. Unlike banks, they do not have the ability to issue share capital. They have to accumulate capital through retained earnings. If the government taxes those earnings, caisses populaires and credit unions will no longer be able to help communities as they do now, or at least, they will be less able to do so.

Let us hope they can survive this. If they succeed, it will certainly not be because the government did anything to help the co-operative movement. It will be because communities rallied behind their co-operative financial institutions—their caisses populaires and their credit unions.

[The Deputy Speaker]

Resuming debate, the hon. parliamentary secretary for international co-operation.

I will advise the hon. parliamentary secretary that she will have just six or seven minutes.

The hon. parliamentary secretary.

[Lois Brown, Conservative, Parliamentary Secretary to the Minister of International Cooperation]

Mr. Speaker, I am pleased to rise in the House today on behalf of the wonderful residents of Newmarket—Aurora to speak on economic action plan 2013.

This is an excellent plan that supports my constituents by its focus on the issues that are important to them.

Each spring, I have an MP booth at three very popular community events in my riding: the Newmarket Home Show and the Aurora Home Show, which take place in April, and the Aurora street festival, which is held the first weekend in June. These events combined attract over 30,000 people, so I have the opportunity to speak with an incredible number of residents and businesses from all walks of life on the issues of the day.

I can report to the House today that from the thousands of discussions, the most top-of-mind issues for my constituents are jobs, the economy and taxes. These are exactly the issues that economic action plan 2013 addresses. People in my riding cannot wait for the measures it contains to be passed and worked through the system so that they can start to benefit.

Let me mention just a few of these initiatives. One would extend for two years the temporary accelerated capital cost allowance for new investments in machinery and equipment by Canadian manufacturers. I am very pleased to see this initiative continue for Newmarket and Aurora businesses to help them grow and create jobs.

Another is indexing gas tax fund payments to better support job-creating infrastructure in municipalities across Canada, which builds on our government's previous work to assist municipalities with their infrastructure requirements. Under the leadership of the Prime Minister, we doubled this fund and made it permanent. The municipalities of Newmarket and Aurora rely heavily on this stable, predictable source of funding to help ease the burden imposed by municipal infrastructure renewal on local taxpayers.

Another initiative is the reform of the temporary working program to ensure that Canadians are given the first crack at available jobs. Economic action plan 2013 announced the need for remedial action in this program and would put steps in place to crack down on the abuses of this program.

As another example, our government is proposing to extend for one year the mineral exploration tax credit for flow-through share investors. Another example is promoting adoption by enhancing the adoption expense tax credit to better recognize the cost of adopting a child. Adoption is a time-consuming and often costly process, and this new measure will be very meaningful to Canadian families who opt to take this path.

We also want to introduce a new temporary first-time donor super credit for first-time claimants of the charitable donations tax credit. As well, we propose to extend tax relief for home care services to better meet the health care needs of Canadians and to remove tariffs on imports of baby clothing and certain sports and athletic equipment.

Residents in Newmarket and Aurora have confidence that our government is on the right track for them. Why? It is because we have delivered on our promises for the past seven years. We have created jobs and grown the economy. Employment in York region grew by 2.3% in 2012 from the year before. Aurora alone grew by 8.7%. I am particularly pleased to see Aurora's manufacturing and construction sector rebound with a 4% expansion last year alone.

Statistics Canada recently released its latest economic update. The Canadian economy grew an outstanding 2.5% in the first quarter of 2013. This is the strongest quarterly growth Canada has seen in nearly two years.

Today we learned that 95,500 net new jobs were created in May, the overwhelming majority of them full time and private sector employment. We also learned that youth employment increased by 54,400 jobs, the biggest monthly job gain for young Canadians in nearly three decades.

In addition to the timely and targeted measures we have enacted and will enact, we are on track to balance the budget. We are increasing federal transfer support to record highs and keeping federal taxes at their lowest level in 50 years.

I would like to elaborate on our support for municipalities. Many community leaders and organizations in Newmarket—Aurora have been calling on the upper levels of government to provide predictable funding for infrastructure. The Newmarket Chamber of Commerce, the Aurora Chamber of Commerce and town councils for Newmarket and Aurora are among them.

I am very pleased to tell them that our government has listened and acted. Economic action plan 2013 includes the highest infrastructure commitment in the history of Canada through the historic building Canada plan, worth an enormous $70 billion in federal dollars for Canadian infrastructure.

Mr. Speaker, I know that you have given me the sign that my time if almost up and I have much more that I would love to tell the good people in Newmarket—Aurora from this chamber. What I can tell them is our government is focused on creating jobs, growth and long-term prosperity for people across the country. We have reduced taxes over 150 times since we took government. That has put more than $3,000 extra in the pockets of families in our communities. They are the ones out there working every day, trying to put food on the table for their kids and give them opportunities. We want to continue that, to ensure that Canadians from coast to coast to coast have the opportunity to succeed.

[The Deputy Speaker]

It being 1:15 p.m., pursuant to order made Monday, June 3, 2013, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the third reading stage of the bill now before the House.

[Maurice Vellacott, Conservative, Saskatoon—Wanuskewin, SK]

Mr. Speaker, I rise on a point of order. I have been around this place a long time, but I am not clear on this fact. I would have thought the mover of the amendment is required to be here in the House at this time. I await your advice on that.

[The Deputy Speaker]

It is not necessary for the mover to be in the House at this time of the motion.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I rise on a point of order. I am not sure of the procedure here either, but do members not have to be in their own seats in order to cast their vote, even on a voice vote?

[The Deputy Speaker]

No, they do not have to be in their seats at this stage. This is not a vote.

Let us try again.

The question is on the amendment. Is it the pleasure of the House to adopt the amendment?

[Some hon. members]

Agreed.

No.

[The Deputy Speaker]

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