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.

Bill C-60—Time Allocation Motion

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I would point out to my hon. colleague from Wascana that the budget was actually tabled in the House almost 50 days ago. There has been ample discussion in question period about some of the items referred to in the budget. There have been answers to clarify many of those questions, and we know that this place always gives good answers to good questions.

I am not sure which Liberal finance minister's budget it was in 2001, but I would remind that hon. member that in 2001 there was a slightly larger bill than the present budget implementation bill and closure was forced on that. Members had three days in the House of Commons to debate that bill. There was no option for it to go to more committees than just one.

I would suggest that through transparency we are providing more opportunities for politicians to debate the budget implementation bill and more opportunities for witnesses to state their concerns or their support for what is in the budget.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, it is with sadness that I rise today to ask my colleague a question.

As we know, this government has already broken the record for the most time allocation motions in Canadian history. Today again it has introduced a motion to cut the debate short.

On Monday, for the first time, we had an opportunity to see the content of the budget implementation bill. Today is Thursday and we are being told that we have four days left to study a bill that will amend almost 60 different federal laws.

If we do the math, this bill, which is about 100 pages in length, will amend approximately 10 acts a day. We are being asked to read it on a Monday for the first time and vote on it the following Tuesday, yet this 100-page bill amends 50 pieces of legislation.

How does my colleague suppose that, as parliamentarians, we will be able to fully examine the bill and make informed decisions?

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, my colleague's question provides me with the opportunity to remind him and other hon. members that this legislation, should it be approved, will go to multiple committees after second reading, where it will be studied and witnesses will come forward and speak to the pieces of legislation that need updating.

Our fundamental role as government is to move forward with the plan that we put forward following the recession, a plan that I would argue has been very successful, especially when it is benchmarked against other countries, many of them in recession. Eight of the seventeen large economies in the European Union are in recession while Canada continues to grow. We continue to grow because we have kept the plan for jobs and growth and the long-term prosperity of this country.

[Royal Galipeau, Conservative, Ottawa—Orléans, ON]

Mr. Speaker, I have been listening attentively to the comments made from all corners of the House. I was particularly impressed by claims on the side of demagoguery made by the opposition House leader when he referred, for instance, to the Minister of Foreign Affairs speaking in the House during the 37th and 38th Parliament. He was not a member of the 39th Parliament. He never sat in opposition in the House.

Then the member made reference to the Auditor General's report and an amount of money having been lost. Well, sorry, the Auditor General never said any such thing and never wrote any such thing.

That is my comment.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I thank my hon. colleague for pointing that out. I knew the House leader for the official opposition was probably referring to another minister from that time who sits on the front bench.

However, it does give me an opportunity to remind hon. members that we are being encouraged to get this done as soon as possible. If I have the opportunity, I will go through a litany of supportive quotes from different associations, different industries and businesses across the country.

In fact, just last evening I met an individual who is on the board of Genome Canada. I was not even aware that he was on the board. He thanked us for the contribution to Genome Canada and highlighted some of the incredible work that it has done. He said the sooner we can get that money flowing, the sooner it can get this science to work. His main theme was in the agricultural sector. There have been incredible breakthroughs through Genome Canada, and we need to get this money out as soon as we can to get it working on that.

[Jean-François Larose, NDP, Repentigny, QC]

Mr. Speaker, that is cowardly and insulting.

We keep saying that every time they introduce a bill, everything gets lumped in together. This budget, yet again, contains a large number of provisions. Of course we oppose some of them. That stands to reason. Since they do not have the courage of their convictions, they lump everything in together and try to hide things.

Once again, they want to speed up the process and shove this bill down our throats, assuming that we are all idiots. I cannot understand it. Either this is urgent or the government needs therapy.

If this is urgent, is it because there is a zombie invasion? Is it the end of the world? Is that why we need to hurry and cannot take time for debate? If the government needs therapy, honestly, I would be happy to give out hugs.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I thought we put the issue of zombies to bed. The Minister of Foreign Affairs, in answering a question one day, actually did put that fear to bed, so I am glad that is not going to happen.

There are a number of items that I would suggest are very urgent. We consulted broadly with the Federation of Canadian Municipalities. It thanked us, first of all, for making the gas tax rebate to municipalities permanent. Then it thanked us for the legislation that we put in place so that municipalities could legally put it in their budgets. However, it did say to us that their costs continue to go up with inflation and asked if there was any way they could have that gas tax fund indexed. We went through it and did the number crunching, and it is feasible. We understand the challenges that municipalities are facing, so we indexed the gas tax fund.

We need to get this legislation through so the municipalities have confirmation that they can continue with their infrastructure projects.

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, it is unfortunate we have time allocation so early in this process because there are some important questions that a more thorough debate would possibly deal with.

Youth employment numbers are actually five points worse than they were five years ago. Young Canadians are looking for work. Students are looking for work. In fact, last summer we saw the worst summer jobs numbers since Stats Canada started tracking those number in the 1970s. It is estimated hundreds of thousands of young Canadians are working in unpaid internships. Why, at a time like this, is there nothing in the budget implementation bill to help young Canadians find opportunities?

There is one measure, the first-time donor—

[The Deputy Speaker]

Order, please. I am limiting questions to one minute. The member will please take his seat.

The hon. Minister of State.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I think I understood what the hon. member was getting at, which is the first-time donor's credit.

The hon. member will have heard many witnesses come before the finance committee during its study of charitable giving. He would have heard the challenges of many of the associations that pleaded for more support. The not-for-profit and charitable organizations in this country are feeling the same pinch that many of the companies are. Therefore, we felt this was an appropriate way.

Many young Canadians want to start giving, so this is an opportunity to leverage their charitable giving, which I think is an honourable goal.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, this is an outrage. I am furious.

This government is asking us to hastily pass the budget, yet we have learned that there is $29 billion worth of declared, acknowledged tax debt and $11 billion in disputed tax debt, for a total of $40 billion in tax debt. We have no way of knowing how much of that money is going into tax havens. Historically speaking, Statistics Canada carried out that kind of analysis, but it no longer has the budget to do so.

I am outraged because the Conservatives are not asking us to vote on a budget; they are asking us to vote on a sieve. Would it not seem slightly more reasonable to the government member for us look at what we are really spending and what revenue we are missing out on? Could the government be logical or exercise sound management for once?

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, with respect to tax havens—or aggressive tax planning, as it is referred to by accountants in a more equitable fashion—we need to make sure that taxes are levied fairly across all Canadians. That is our fundamental principle. Honest, hard-working Canadians pay their taxes, and there should not be those who are able to avoid that, whether internationally through holding companies or whatever it may be. Those are challenges that the Canada Revenue Agency is dealing with. It has had a tremendous success rate using our double taxation agreements with many countries, and we continue to add to that list of countries. The foreign investment promotion protection agreements help us on that as well.

There are items in this budget that will help us crack down on tax avoiders.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr. Speaker, I would like to talk about a principle that we hold dear here in the House of Commons, the principle of democracy in action. This government, which was elected in a democratic country, is showing a total lack of respect for democracy and the debates that are needed to ensure that bills are studied by representatives of all Canadians, regardless of their party.

Could the parliamentary secretary tell us what he thinks about the fact that this time allocation motion is not allowing Canadians to benefit from the representation they deserve because it does not allow the budget to be fully examined and understood on their behalf?

[The Deputy Speaker]

Order, please. The hon. Minister of State has both had a promotion and now a demotion. I think he still remains the Minister of State for Finance.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I do appreciate that recognition. It is an easy mistake to make because I did fill that role, a role that is covered very ably by our colleague from Saint Boniface, who has handled this file very well.

There are five full days of debate within the House of Commons. Once it moves from this place, it then goes to multiple committees. We are still working on which committees it should go to. That provides an incredible number of hours to debate it.

Rather than standing up and asking process questions, the hon. member had lots of time to ask me a specific question about something that was in the first budget implementation act 1. She chose not to.