Bill C-31 (Historical)

Economic Action Plan 2014 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures

Part 1 implements income tax measures and related measures proposed in the February 11, 2014 budget. Most notably, it
(a) increases the maximum amount of eligible expenses for the adoption expense tax credit;
(b) expands the list of expenses eligible for the medical expense tax credit to include the cost of the design of individualized therapy plans and costs associated with service animals for people with severe diabetes;
(c) introduces the search and rescue volunteers tax credit;
(d) extends, for one year, the mineral exploration tax credit for flow-through share investors;
(e) expands the circumstances in which members of underfunded pension plans can benefit from unreduced pension-to-RRSP transfer limits;
(f) eliminates the need for individuals to apply for the GST/HST credit and allows the Minister of National Revenue to automatically determine if an individual is eligible to receive the credit;
(g) extends to 10 years the carry-forward period with respect to certain donations of ecologically sensitive land;
(h) removes, for certified cultural property acquired as part of a gifting arrangement that is a tax shelter, the exemption from the rule that deems the value of a gift to be no greater than its cost to the donor;
(i) allows the Minister of National Revenue to refuse to register, or revoke the registration of, a charity or Canadian amateur athletic association that accepts a donation from a state supporter of terrorism;
(j) reduces, for certain small and medium-sized employers, the frequency of remittances for source deductions;
(k) improves the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada; and
(l) requires a listing of outstanding tax measures to be tabled in Parliament.
Part 1 also implements other selected income tax measures. Most notably, it
(a) introduces transitional rules relating to the labour-sponsored venture capital corporations tax credit;
(b) requires certain financial intermediaries to report to the Canada Revenue Agency international electronic funds transfers of $10,000 or more;
(c) makes amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency;
(d) permits the disclosure of taxpayer information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(e) provides that the Business Development Bank of Canada and BDC Capital Inc. are not financial institutions for the purposes of the Income Tax Act’s mark-to-market rules.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the February 11, 2014 budget by
(a) expanding the GST/HST exemption for training that is specially designed to assist individuals with a disorder or disability to include the service of designing such training;
(b) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by acupuncturists and naturopathic doctors;
(c) adding eyewear specially designed to treat or correct a defect of vision by electronic means to the list of GST/HST zero-rated medical and assistive devices;
(d) extending to newly created members of a group the election that allows members of a closely-related group to not account for GST/HST on certain supplies between them, introducing joint and several (or solidary) liability for the parties to that election for any GST/HST liability on those supplies and adding a requirement to file that election with the Canada Revenue Agency;
(e) giving the Minister of National Revenue the discretionary authority to register a person for GST/HST purposes if the person fails to comply with the requirement to apply for registration, even after having been notified by the Canada Revenue Agency of that requirement; and
(f) improving the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada.
Part 2 also implements other GST/HST measures by
(a) providing a GST/HST exemption for supplies of hospital parking for patients and visitors, clarifying that the GST/HST exemption for supplies of a property, when all or substantially all of the supplies of the property by a charity are made for free, does not apply to paid parking and clarifying that paid parking provided by charities that are set up or used by municipalities, universities, public colleges, schools and hospitals to operate their parking facilities does not qualify for the special GST/HST exemption for parking supplied by charities;
(b) clarifying that reports of international electronic funds transfers made to the Canada Revenue Agency may be used for the purposes of the administration of the GST/HST;
(c) making amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency;
(d) permitting the disclosure of confidential GST/HST information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(e) clarifying that a person cannot claim input tax credits in respect of an amount of GST/HST that has already been recovered by the person from a supplier.
Part 3 implements excise measures proposed in the February 11, 2014 budget by
(a) adjusting the domestic rate of excise duty on tobacco products to account for inflation and eliminating the preferential excise duty treatment of tobacco products available through duty free markets;
(b) ensuring that excise tax returns are filed accurately through the addition of a new administrative monetary penalty and an amended criminal offence for the making of false statements or omissions, consistent with similar provisions in the GST/HST portion of the Excise Tax Act; and
(c) improving the Canada Revenue Agency’s ability to provide feedback to the Financial Transactions and Reports Analysis Centre of Canada.
Part 3 also implements other excise measures by
(a) permitting the disclosure of confidential information to an appropriate police organization in certain circumstances if the information relates to a serious offence; and
(b) making amendments relating to the introduction of the Offshore Tax Informant Program of the Canada Revenue Agency.
In addition, Part 3 amends the Air Travellers Security Charge Act, the Excise Act, 2001 and the Excise Tax Act to clarify that reports of international electronic funds transfers made to the Canada Revenue Agency may be used for the purposes of the administration of those Acts.
Part 4 amends the Customs Tariff. In particular, it
(a) reduces the Most-Favoured-Nation rates of duty and, if applicable, rates of duty under the other tariff treatments on tariff items related to mobile offshore drilling units used in oil and gas exploration and development that are imported on or after May 5, 2014;
(b) removes the exemption provided by tariff item 9809.00.00 and makes consequential amendments to tariff item 9833.00.00 to apply the same tariff rules to the Governor General that are applied to other public office holders; and
(c) clarifies the tariff classification of certain imported food products, effective November 29, 2013.
Part 5 enacts the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act and amends the Income Tax Act to introduce consequential information reporting requirements.
Part 6 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 6 provides for payments to compensate for deductions in certain benefits and allowances that are payable under the Canadian Forces Members and Veterans Re-establishment and Compensation Act, the War Veterans Allowance Act and the Civilian War-related Benefits Act.
Division 2 of Part 6 amends the Bank of Canada Act and the Canada Deposit Insurance Corporation Act to authorize the Bank of Canada to provide banking and custodial services to the Canada Deposit Insurance Corporation.
Division 3 of Part 6 amends the Hazardous Products Act to better regulate the sale and importation of hazardous products intended for use, handling or storage in a work place in Canada in accordance with the Regulatory Cooperation Council Joint Action Plan initiative for work place chemicals. In particular, the amendments implement the Globally Harmonized System of Classification and Labelling of Chemicals with respect to, among other things, labelling and safety data sheet requirements. It also provides for enhanced powers related to administration and enforcement. Finally, it makes amendments to the Canada Labour Code and the Hazardous Materials Information Review Act.
Division 4 of Part 6 amends the Importation of Intoxicating Liquors Act to authorize individuals to transport beer and spirits from one province to another for their personal consumption.
Division 5 of Part 6 amends the Judges Act to increase the number of judges of the Superior Court of Quebec and the Court of Queen’s Bench of Alberta.
Division 6 of Part 6 amends the Members of Parliament Retiring Allowances Act to prohibit parliamentarians from contributing to their pension and accruing pensionable service as a result of a suspension.
Division 7 of Part 6 amends the National Defence Act to recognize the historic names of the Royal Canadian Navy, the Canadian Army and the Royal Canadian Air Force while preserving the integration and the unification achieved under the Canadian Forces Reorganization Act and to provide that the designations of rank and the circumstances of their use are prescribed in regulations made by the Governor in Council.
Division 8 of Part 6 amends the Customs Act to extend to 90 days the time for making a request for a review of a seizure, ascertained forfeiture or penalty assessment and to provide that requests for a review and third-party claims can be made directly to the Minister of Public Safety and Emergency Preparedness.
Division 9 of Part 6 amends the Atlantic Canada Opportunities Agency Act to provide for the dissolution of the Atlantic Canada Opportunities Board and to repeal the requirement for the President of the Atlantic Canada Opportunities Agency to submit a comprehensive report every five years on the Agency’s activities and on the impact those activities have had on regional disparity.
Division 10 of Part 6 dissolves the Enterprise Cape Breton Corporation and authorizes, among other things, the transfer of its assets and obligations, as well as those of its subsidiaries, to either the Atlantic Canada Opportunities Agency or Her Majesty in right of Canada as represented by the Minister of Public Works and Government Services. It also provides that the employees of the Corporation and its subsidiaries are deemed to have been appointed under the Public Service Employment Act and includes provisions related to their terms and conditions of employment. Furthermore, it amends the Atlantic Canada Opportunities Agency Act to, among other things, confer on the Atlantic Canada Opportunities Agency the authority that is necessary for the administration, management, control and disposal of the assets and obligations transferred to the Agency. It also makes consequential amendments to other Acts and repeals the Enterprise Cape Breton Corporation Act.
Division 11 of Part 6 provides for the transfer of responsibility for the administration of the programs known as the “Online Works of Reference” and the “Virtual Museum of Canada” from the Minister of Canadian Heritage to the Canadian Museum of History.
Division 12 of Part 6 amends the Nordion and Theratronics Divestiture Authorization Act to remove certain restrictions on the acquisition of voting shares of Nordion.
Division 13 of Part 6 amends the Bank Act to add regulation-making powers respecting a bank’s activities in relation to derivatives and benchmarks.
Division 14 of Part 6 amends the Insurance Companies Act to broaden the Governor in Council’s authority to make regulations respecting the conversion of a mutual company into a company with common shares.
Division 15 of Part 6 amends the Motor Vehicle Safety Act to support the objectives of the Regulatory Cooperation Council to enhance the alignment of Canadian and U.S. regulations while protecting Canadians. It introduces measures to accelerate and streamline the regulatory process, reduce the administrative burden for manufacturers and importers and improve safety for Canadians through revised oversight procedures and enhanced availability of vehicle safety information.
The amendments to the Railway Safety Act and the Transportation of Dangerous Goods Act, 1992 modernize the legislation by aligning it with the Cabinet Directive on Regulatory Management.
This Division also amends the Safe Food for Canadians Act to authorize the Governor in Council to make regulations respecting activities related to specified fresh fruits and vegetables, including requiring a person who engages in certain activities to be a member of a specified entity or organization. It also repeals the Board of Arbitration.
Division 16 of Part 6 amends the Telecommunications Act to set a maximum amount that a Canadian carrier can charge to another Canadian carrier for certain roaming services.
Division 17 of Part 6 amends the Canada Labour Code to allow employees to interrupt their compassionate care leave or leave related to their child’s critical illness, death or disappearance in order to take leave because of sickness or a work-related illness or injury. It also amends the Employment Insurance Act to facilitate access to sickness benefits for claimants who are in receipt of compassionate care benefits or benefits for parents of critically ill children.
Division 18 of Part 6 amends the Canadian Food Inspection Agency Act to provide that fees fixed under that Act for the use of a facility provided by the Canadian Food Inspection Agency under the Safe Food for Canadians Act as well as fees fixed for services, products and rights and privileges provided by the Agency under that Act are exempt from the application of the User Fees Act.
Division 19 of Part 6 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, enhance the client identification, record keeping and registration requirements for financial institutions and intermediaries, refer to online casinos, and extend the application of the Act to persons and entities that deal in virtual currencies and foreign money services businesses. Furthermore, it makes modifications in regards to the information that the Financial Transactions and Reports Analysis Centre of Canada may receive, collect or disclose, and expands the circumstances in which the Centre or the Canada Border Services Agency can disclose information received or collected under the Act. It also updates the review and appeal provisions related to cross-border currency reporting and brings Part 1.1 of the Act into force.
Division 20 of Part 6 amends the Immigration and Refugee Protection Act and the Economic Action Plan 2013 Act, No. 2 to, among other things,
(a) require certain applications to be made electronically;
(b) provide for the making of regulations regarding the establishment of a system of administrative monetary penalties for the contravention of conditions applicable to employers hiring foreign workers;
(c) provide for the termination of certain applications for permanent residence in respect of which a decision as to whether the selection criteria are met is not made before February 11, 2014; and
(d) clarify and strengthen requirements related to the expression of interest regime.
Division 21 of Part 6 amends the Public Service Labour Relations Act to clarify that an adjudicator may grant systemic remedies when it has been determined that the employer has engaged in a discriminatory practice.
It also clarifies the transitional provisions in respect of essential services that were enacted by the Economic Action Plan 2013 Act, No. 2.
Division 22 of Part 6 amends the Softwood Lumber Products Export Charge Act, 2006 to clarify how payments to provinces under section 99 of that Act are to be determined.
Division 23 of Part 6 amends the Budget Implementation Act, 2009 so that the aggregate amount of payments to provinces and territories for matters relating to the establishment of a Canadian securities regulation regime may be fixed through an appropriation Act.
Division 24 of Part 6 amends the Protection of Residential Mortgage or Hypothecary Insurance Act and the National Housing Act to provide that certain criteria established in a regulation may apply to an existing insured mortgage or hypothecary loan.
Division 25 of Part 6 amends the Trade-marks Act to, among other things, make that Act consistent with the Singapore Treaty on the Law of Trademarks and add the authority to make regulations for carrying into effect the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks. The amendments include the simplification of the requirements for obtaining a filing date in relation to an application for the registration of a trade-mark, the elimination of the requirement to declare use of a trade-mark before registration, the reduction of the term of registration of a trade-mark from 15 to 10 years, and the adoption of the classification established by the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks.
Division 26 of Part 6 amends the Trade-marks Act to repeal the power to appoint the Registrar of Trade-marks and to provide that the Registrar is the person appointed as Commissioner of Patents under subsection 4(1) of the Patent Act.
Division 27 of Part 6 amends the Old Age Security Act to prevent the payment of Old Age Security income-tested benefits for the entire period of a sponsorship undertaking by removing the current 10-year cap.
Division 28 of Part 6 enacts the New Bridge for the St. Lawrence Act, respecting the construction and operation of a new bridge in Montreal to replace the Champlain Bridge and the Nuns’ Island Bridge.
Division 29 of Part 6 enacts the Administrative Tribunals Support Service of Canada Act, which establishes the Administrative Tribunals Support Service of Canada (ATSSC) as a portion of the federal public administration. The ATSSC becomes the sole provider of resources and staff for 11 administrative tribunals and provides facilities and support services to those tribunals, including registry, administrative, research and analysis services. The Division also makes consequential amendments to the Acts establishing those tribunals and to other Acts related to those tribunals.
Division 30 of Part 6 enacts the Apprentice Loans Act, which provides for financial assistance for apprentices to help with the cost of their training. Under that Act, apprentices registered in eligible trades will be eligible for loans that will be interest-free until their training ends.

Economic Action Plan 2014 Act, No. 1

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

Mr. Speaker, I would like to thank my esteemed colleague for his question and also for his work. His dedication and efforts to fight the government’s measures are incredible.

The issue of trademarks is very interesting and highly complex. The problem is that the various chambers of commerce share the same opinions. It is either all black or all white. This is very interesting. It is not the first time, but it is very rare that chambers of commerce use their power, and connections with other chambers of commerce across Canada, to move against a bill. They are calling on the Conservatives to explain why they are doing this, given that the impacts on innovation, new technologies and businesses are very serious. The Conservative government says that it does not agree. This is an incredible moment in time.

A business group makes a statement like that, and the Conservatives completely ignore the facts and the data. Now, that is interesting. Hating business groups is something new for the Conservatives. When the Conservatives have a bad plan, they plough ahead with it regardless of the cost. That is a problem, and demonstrates just how incredibly arrogant they are.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Mr. Speaker, I would like to go back to a couple of comments we heard in part of the amendment that the member proposed, which is associated with the veterans side of it. I have a couple of comments that were made by the Veterans Ombudsman, Guy Parent, during the testimony we had. He talked about the difference between the retroactivity of the previous system and going on to this right now. He also said:

...Veterans Affairs Canada was operating within the full context of the legislation. When confronted with a new understanding of the disability pension, a policy change was made to amend the regulation to eliminate the harsh effect that this policy was having on veterans.From an ombudsman's perspective, there is nothing unfair about what has occurred.

He then went on to say:

You can see that the population affected here is more than just the new veterans clients. We're talking about the war veterans allowance clients as well. So we're talking about going back 40 or 50 years.With regard to fairness, we think the government acted fairly.

Does the hon. member agree with that?

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

Mr. Speaker, here is who I agree with: the veterans who came and testified in front of the committee, like Sean Bruyea, who very bravely continues to advocate for veterans, even after his mental health records were given to the public by the Conservatives. How is that for standing up for veterans?

[Gerald Keddy]

Come on.

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

Mr. Speaker, the Conservatives can contest it all they all want, but this is a known fact. The same Veterans Ombudsman, whom my friend quotes, is the one who cited this breach of confidentiality for Mr. Bruyea.

[Gerald Keddy]

Just make it up.

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

Mr. Speaker, the Conservatives can yell all they want, but these facts are on the record. They absolutely did this to a serving vet, to someone who had suffered greatly on behalf of Canada.

We asked a government policy person who came to the briefing that night why the decision was made not to go back to 2006 when this clawback was first initiated. Again, this is a clawback from disabled and injured vets. Rather than start it in 2012, why did the government not go back to 2006? What is the policy basis for this? He said it was a political decision.

Now, the current government has spent tens of millions of dollars in court fighting veterans on this very issue. That is absolutely a fact. The government spent taxpayer money fighting Canadian veterans. However, for the compensation to go back to 2006 would have cost about the equivalent of what the Conservatives have spent in court fighting disabled vets. That is the fact; that is the reality.

The ombudsman was correct in his interpretation of the law; in terms of justice for our vets, we will listen to the veterans every single time.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, certain industries in Canada, in all regions, have been hit quite hard by the current government's budgetary policies. One of them is the manufacturing industry, and we only have to look at the province of Ontario where literally hundreds of thousands of jobs within the manufacturing industry have been hit, and hit very hard.

A good part of that deals with the issue of trade, where we have seen the government slip annually in terms of the amount the trade deficit has grown under this administration. Trade ultimately leads to tens of thousands of potential job opportunities, which have been lost.

I wonder if my colleague might want to provide some comment regarding the benefits of trade. I am not talking about any specific trade agreement, but trade overall. Can the member comment on how trade is in the best interest of Canada, and how the Conservatives have not been able to get to the bigger picture on the issue of trade and the importance it has in creating jobs?

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

Mr. Speaker, it is a connected piece and another missed opportunity. I wish the government had taken a Hippocratic oath before it designed this bill, to do no harm.

One of the things the Conservatives have done—I think it was inadvertent, because I do not think they actually understood the consequences—is that they have mashed together a bunch of independent tribunals, such as the Canadian Human Rights Tribunal and the Canadian International Trade Tribunal. They combined all the budgets into one, and then reduced it.

We heard from the Canadian Manufacturers and Exporters, and this was testimony that the Conservatives decided to ignore. However, the testimony from one of the largest business groups in Canada said that getting through the trade tribunal would be more difficult, thereby limiting Canada's ability to trade. This is not from New Democrats. This is from the Canadian Manufacturers and Exporters. These are folks who deal with the trade tribunal and deal with trying to get trade deals across the board.

These are not the fake, so-so FIPA trade deals over which the Conservatives make great fanfare and never bring to the House. They never sign them and never ratify them, but they are very important. An example is the one they did with Europe all that time ago. Apparently, it is all done; they just have to put a couple of dots down and the thing is finished, yet it is not here, it does not exist, and the Europeans are talking about these important things that they cannot quite get done.

We had a specific motion that we moved to say, if we want to help out Canadian manufacturers and exporters, then do not do this to the trade tribunal; do not mash it together with these other ones and then reduce the budget.

What did the Conservatives do? They said they did not care, and they voted against the amendment. They said to let the manufacturers deal with their reality, because that is the reality the Conservatives want. That is what they said to the manufacturers of this country.

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, first of all, I want to thank my hon. colleague from Skeena—Bulkley Valley for his excellent and passionate presentation today, exposing Bill C-31, the budget implementation act, for what it is.

In particular, I was here when the member asked a question of the parliamentary secretary concerning FATCA and the compliance cost of it. He pointed out that it was $100 million that one bank would have to spend in order to come into compliance with it. He mused about what the cost would be for the government to bring this into line, but he got absolutely no answer.

I wonder if the member could comment on what this lack of understanding says about the fiscal management style and relevance of the Conservatives.

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

Mr. Speaker, there go those penny pinching Conservatives again. They sign a major tax treaty with the United States without understanding the costs, even while they knew the charter banks had talked about the capacity to accumulate all this data. For one bank it was $100 million. The Canadian government, when asked, said no, that it did not do an estimate and it did not know the costs. That was at the briefings as well.

We know the Privacy Commissioner has looked at this and is deeply concerned. We know constitutional experts have looked at this and have said that this is likely going to head to a charter challenge. Again, the Conservatives who have such a wretched record with presenting laws that are able to survive a constitutional challenge, have once again brought in a bill with eyes wide open. They said that this was likely to hit a constitutional challenge, likely to get undone by the high court in Canada and they introduced it anyway.

The Conservatives are going to ram it through and they will all vote for it happily because the Prime Minister told them to do so. Why not listen to the evidence for once? Why not protect those million Canadians who are going to have their private banking information passed on to the IRS in Washington without them even being notified? Why not stand up for Canada just this once?

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

Mr. Speaker, I rise to speak today to Bill C-31. I would like to split my time with the member, my colleague from Bourassa.

[The Acting Speaker, Barry Devolin]

Order, please. In order to split time during the first round, the hon. member needs the unanimous consent of the House to do so. Does the House agree that he can split his time?

[Some hon. members]

Agreed.

[The Acting Speaker, Barry Devolin]

The hon. member for Kings—Hants.