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

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, I am truly proud to rise today to speak to our budget implementation bill.

I have listened to what members of the opposition have said about the bill. They have spent more time complaining about the lack of time they have for debate than anything else. Some finally are starting to focus on some of the issues, and that is a good and healthy thing. That is what the opposition should be doing.

However, we have had day after day of debate on the bill, and we are only at second reading. It will go to committee for hours and hours and days and days of discussion and debate. Then it comes back to the House for third reading debate, which will be several days more. Yet the opposition spends time complaining about the lack of time they have to speak on the bill. It does not jibe with reality.

I would encourage members of the opposition to focus more on dealing with the issues. If they have concerns, they should bring those forward, absolutely. That is the role of the opposition. It is an appropriate role. I encourage them to do that. It would not hurt, from time to time, to say something positive where they see strengths in the budget. In fact, the last member to speak did that, and I give her credit for it. We have heard precious little of that from the opposition in this debate, although we hear more in private conversations.

I will focus on a couple of the key issues that are important parts of the budget and of this implementation bill. First, I will focus on the government and its absolute commitment to balancing the budget by 2015. That is very important to people in my part of the country and to Alberta as a province. It would bring benefits to Canadians right across the country. It is worth talking about a little bit.

Unlike the Liberal leader, who said that the budget would balance itself, we do not believe that, and we put in place a plan back in 2006 that started the process of working toward a balanced budget. That is when we got into government.

The opposition forgets that we paid down $37 billion in federal debt before the recession hit. When the recession hit, the government took the position that it was important to provide some stimulus for the economy. Most of that was delivered through infrastructure funding, new innovation, and things that would make Canada more competitive and would allow us to compete with our neighbour to the south but also with the world. We have seen really incredible results from that over the past few years. The benefits are becoming obvious.

We have focused on balancing the budget. We will not do it by legalizing marijuana, another position taken by the leader of the Liberal Party, which is to tax it but make it more readily available for our youth and our kids. We will not do that. First, I do not think that would do the job. Second, I think it is more important that we protect our children from marijuana and from other drugs, for that matter. I do not believe that they are harmless. I believe that they are dangerous drugs that are to be kept from our children. Legalizing marijuana, as the leader of the opposition suggests, no doubt as a plan to increase taxes to balance the budget, is not an acceptable way to go, and I will not be part of that. I simply will not support that, and our government certainly will not propose that in any fashion.

Nor should we try balancing the budget by implementing a carbon tax, which has been proposed by both the New Democratic Party and the Liberals. I do not believe that is the right way to go. Our government does not believe that is the right way to go either. In fact, we believe that would stifle business and harm our economy and therefore kill jobs. That is not what we are about. We are about creating a stronger economy and creating jobs and long-term prosperity for all Canadians.

We have certainly moved our country along in that direction in the past few years. I am proud to be a member of the party that is in government now. We are not willing to go the carbon tax route.

We have members of the opposition saying that we do not care about the environment. That is simply not the case. In fact, if we look at history, it is always Conservative parties that actually do something about protecting the environment. When the former Progressive Conservative government was in place, Prime Minister Mulroney was the prime minister. He was criticized and beaten upon day after day, week after week, year after year, because he was not doing enough on the environment. Who was then awarded recognition by the Sierra Club, which was led by the current leader of the Green Party, as the most green prime minister in Canadian history? It was Mr. Mulroney. What the opposition said at the time, when the Conservatives were in government, and what it said later, once it was actually recognized what they had done, were two different things entirely.

That is really what is happening with our government as well. Certainly the opposition does not recognize what we have done for the environment, nor does the national media, but the reality is that we have done a lot. We have Canada well positioned when it comes to dealing with the environment and ensuring that Canadians are going to live long into the future in a very safe environment. I am proud to be a part of that. We are doing that without a carbon tax at the same time as we are balancing the budget. That is an important focus. It is a commitment we will meet next year, if not sooner.

I think Canadians want to know that. Why should they care? They should care because once we balance the budget, we can pay down the debt. At that time, maybe we could offer some tax relief as well. Maybe there could be targeted new spending as well. Certainly the infrastructure spending we have committed to in the budget will increase as time goes on. All of that is in place. As we start paying down the debt again, as we did when we first got into government, with $37 billion in those first three years, I think it was, it means lower interest payments for Canadians. That means more money they can keep in their pockets. We are all about that.

How have we balanced the budget? I was here in 1993 when the Liberal government balanced the budget. I give it credit for that. How did the Liberals do it? They did it almost entirely by downloading to the provinces and municipalities. They did not do it by making government itself more efficient. They did not do it by improving operations within the departments. They did nothing when it comes to that. They did it by downloading to the provinces and by slashing health transfers by $21 billion. That is completely out of line.

We are balancing the budget with increased spending on infrastructure and increased spending on social transfers while at the same time keeping taxes low. We have lowered taxes for an average Canadian family of four by $3,400. At the same time, we offered these families $1,200 a year for every preschool child. We left that in place. We are not increasing taxes. We are keeping taxes low. In fact, taxes in Canada are the lowest they have been in 50 years. What a reversal.

The world is noticing. There has been a 35% reduction in business tax. The rewards are great. We have more companies moving to Canada to do business. This is a great place to do business. The example we all love to point to is the head office of Tim Hortons. It moved from the United States back home to Canada, where it belongs. That is just one example of many.

I am proud to be part of a government that has balanced the budget and at the same time has kept taxes low and is increasing transfers to the provinces for infrastructure and social programs. It is the right thing to do. I wonder why the opposition does not talk about that more.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, when a government member has to hide behind the bogeyman of a non-existent carbon tax, that says a lot about the quality or lack of quality of a budget and a budget implementation bill. Instead of boasting about their own measures, the member seems to have taken more time to talk about policies he attributes to us that do not exist.

However, he did talk about an award given by the Sierra Club to Prime Minister Mulroney for environmental protection. First, that was 30 years ago. Second, speaking of recognition, we should mention that this government has consistently been criticized by the international community for its poor record on environmental protection.

However, let us talk about protection and safety. My question concerns railway safety and the fact that processes, in cabinet, will no longer be transparent because of certain measures in this omnibus bill.

Does the member really believe that, with respect to railway safety, they are on the right track—no pun intended—by not being transparent about changes that are made?

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, I thank the member for his comments on the recognition that the Conservative governments are in fact the governments that actually do stuff about the environment. We do not tend to talk an awful lot about the environment; we just get it done.

He talked about the award to former Prime Minister Mulroney, who was a PC prime minister and not a Conservative prime minister, but I give him a lot of credit for this. That award was about seven years ago. We are not talking 30 years in the past. He was recognized as the most green prime minister in Canadian history by the leader of the Green Party in the House today. That is the reality.

We are doing the job on the environment, and we are doing it without a business-killing carbon tax. He says there will never be a carbon tax. I hope and pray that is the case. I hope and pray that the New Democrats will never be government and that the Liberals will not be back in government for some time.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, if I did not know better, I would suggest that the member has the Prime Minister's Office's speaking notes down pat. He knows what to say. I can give him that much, even though what he says is somewhat factually incorrect.

Let me ask the member a question. He says that the Conservatives are going to balance the budget. Why should we even believe that in the first place? I suggest they have demonstrated that they are incapable of balancing the budget, but he says they are going to balance the budget and increase infrastructure dollars. That is wrong. It is actually an 80%-plus decrease in their budget document. The member needs to not only read the Prime Minister's Office's speaking notes but also read the budget. It is a decrease.

Then he said they are increasing social spending. It was the Paul Martin agreement on the health care accord that mandated the government, by law, to give increases to health care, and that is why there is a record amount of millions of dollars going to health care today to the provinces.

I am wondering if the member might want to revisit those two inaccurate facts, which were a substantial part of his speech saying that the Conservatives intend to balance the budget. Canadians just do not believe it.

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, I am delighted, of course, to revisit those two issues, because the member is revisiting history. In fact, he is rewriting history, and he is not rewriting it accurately.

I was around in those years that the Liberals were doing what they did to this country, and it was not pretty. The budget was not balanced in the right way at all. They slashed social transfers to the provinces. We have increased them, even to Alberta, finally, the province I am from. We have increased infrastructure transfers from $52 million under the Liberal government, before we got into office, to an average of $412 million per year, which is almost a ninefold increase. That is pretty remarkable. Not only that, our new infrastructure program will deliver $50-some billion over the next 10 years.

[An hon. member]

We will do $100 billion.

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, the member is saying he will do $100 billion. Yes, and the budget will balance itself, his leader said.

[The Acting Speaker, Conservative, Barry Devolin]

The hon. member for Winnipeg North is rising on a point of order, and I trust that it will be a point of order.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is. The member said that I said from $100 billion from across the floor. I did not say $100 billion.

[The Acting Speaker, Conservative, Barry Devolin]

Order, please.

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised to night at the time of adjournment are as follows: the hon. member for Drummond, The Environment; the hon. member for Saanich—Gulf Islands, The Environment.

Resuming debate, the hon. Minister of National Revenue.

[Kerry-Lynne Findlay, Conservative, Minister of National Revenue]

Mr. Speaker, under the leadership of this Prime Minister, Canada has enjoyed a stellar economic record. This is why I stand in this House today in full support of the measures contained in the 2014 budget implementation act.

Year after year, through our economic action plan, this government has created the economic conditions that allow Canadian businesses to prosper and Canadian citizens to benefit from a high standard of living.

There is a sentiment shared by many. Globally recognized authorities, from the OECD to the International Monetary Fund, have ranked Canada as one of the best countries in the world in which to do business. In fact, they expect Canada to be among the strongest-growing economies in the G7 over this year and next.

The international business press, including Forbes Magazine and Bloomberg News, is equally fulsome in its praise for Canada’s success in creating a climate conducive to job creation.

Indeed, the facts speak for themselves. There are over one million more Canadians working today than during the worst part of the recession. That is the best job creation record of any G7 country during this period.

Despite significant global uncertainty, the Canadian economy has continued to expand. Real gross domestic product in Canada is significantly above pre-recession levels. All of this is translated into the strongest real per capita income growth in the G7 since 2006, which means Canadians have more money in their pockets today than their counterparts have in other developed countries.

This is a testament to this government's and this Prime Minister's strong economic stewardship.

Of course, there is ongoing uncertainty in the global economic environment. That is why we must continue to encourage job creation and foster economic growth, the twin pillars of the economic action plan since its inception in 2009, while remaining on track for balanced federal budgets.

That is exactly what budget 2014 will do.

We must—and we will—continue to improve the conditions for business investment. We will keep taxes low and reduce the tax compliance and regulatory burden on businesses so they can focus on jobs and economic growth. We will also make sure everyone pays their fair share.

There are over 20 tax measures in the budget that would improve the fairness and integrity of the tax system and crack down on tax avoidance and evasion.

One of the most important of these measures would advance the work of the Red Tape Reduction Commission. Economic action plan 2014 announced that we are cutting red tape for more than 50,000 employers by reducing the maximum number of times employers need to send source deduction payments to the CRA. These are deductions companies withhold for their employees' income tax, Canada pension plan contributions, and employment insurance premiums.

At the moment, if employers withhold an average of $15,000 to $50,000 in deductions monthly, they are required to remit deductions up to twice per month. Larger organizations withholding monthly deductions of $50,000 or more have to remit them up to four times a month. This can be an onerous task for Canadians already working tirelessly to run their businesses.

To reduce the tax compliance burden, economic action plan 2014 proposes to reduce the frequency of remittances by increasing the threshold levels. Employers would only need to remit up to two times per month when their withholdings are between $25,000 and $100,000. The upper threshold would also be increased. Now only employers with monthly withholdings of $100,000 or more would be required to remit up to four times a month.

We also intend to launch a liaison officer initiative pilot project to improve compliance within Canada’s small and medium business community.

Firms will be provided with information and the support they need, when they most need it, so they get their tax obligations “right from the start”. This will help them avoid costly and time-consuming interactions with CRA, freeing up businesses to focus on doing business.

Another way we would reduce the paper burden for companies big and small would be by making improvements to CRA service delivery. For instance, authorized company tax representatives, such as accounting firms, can now submit an electronic authorization request to the CRA instead of filing paper forms.

As part of our efforts to reduce red tape, we have engaged Canada's business community and listened to its concerns. We are now acting on its recommendations.

As of October 2014, businesses will be able to update their banking and direct deposit information online.

October is also when the first free online option for paying taxes will be available for business owners registered with My Business Account. As well, a detailed payment history for all of their accounts will be available in one secure and convenient place.

Our government takes the abuse of Canada's tax laws very seriously. Unpaid taxes mean less money for programs that all Canadians depend upon. The CRA is clamping down on international tax evasion and aggressive tax avoidance. The majority of the measures announced in economic action plan 2013 to combat international tax evasion and aggressive tax avoidance are now in place and are giving CRA investigators more tools to crack down on tax cheats. These measures will build on our efforts in dealing with international non-compliance.

To date the CRA has identified over $4.5 billion in unpaid tax. This includes 340 cases of high-net-worth groups using sophisticated business structures and offshore arrangements to avoid taxes.

Word of CRA's success is spreading. Disclosures received through the CRA's voluntary disclosures program involving offshore accounts or assets have increased from roughly 1,200 in 2006-07 to close to 4,000 in 2012-13. Total unreported income from this period was $1.77 billion, with just over $470 million in federal taxes owing.

To make it easier to identify more cases of international tax non-compliance, we now require Canadian taxpayers with foreign income or properties to report more detailed information, and we have extended the time the CRA has to reassess those who have not properly reported this income. As of 2015, we will have even more tools at our disposal. Banks and other financial intermediaries will be required to report international electronic file transfers of $10,000 or more to the CRA.

We have also streamlined the legal process that allows the CRA to get information from third parties, such as banks. This makes it easier to access information on unnamed individuals, such as those who hold foreign assets or are involved in foreign financial transactions.

This government is working to ensure the CRA has access to as many sources of information as possible. That is precisely why we introduced the new offshore tax informant program, which allows individuals to provide information related to major international tax non-compliance.

I could go on highlighting a long list of new tax credits in this year's budget. They range from recognizing the contributions of volunteers who fight fires or conduct search and rescue to expanding the list of eligible medical expenses and enhancing the adoption expense tax credit, initiatives that would make a meaningful difference in the lives of Canadian taxpayers.

I urge all parties to join us in passing this legislation so that we can continue on our path of job creation and economic growth.

[Kennedy Stewart, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I asked a question last week along the same lines but I did not get an answer from that side of the House, so I am hoping that the minister will answer this question.

The recent issue of The Economist shows that GDP growth in Canada is slated to be 2.3%, Australia 2.7%, the U.S. 2.8%, and Britain 2.9%. We are starting to lag behind our biggest trading partners in terms of economic growth.

Would the minister care to comment that perhaps the cuts the Conservatives have made over the last couple of budgets have been too deep and are stifling our future economic growth?

[Kerry-Lynne Findlay, Conservative, Delta—Richmond East, BC]

Mr. Speaker, the truth is that Canada is weathering the global economic turbulence better than most other countries with the help of our low tax plan. We have the lowest federal tax burden now in 55 years. Our plan is working. We have seen the most net new and full-time jobs of any of our G7 partners. We continue to lead the way. Bloomberg has said that we are the second best place in the world to do business. These kinds of accolades from around the world continue to come in. It shows that we are on the right track, albeit in a fragile global environment, and that we are doing what we should do. Lower taxes make Canada's economy stronger. This is what creates good and long-term jobs for Canadians. That is our focus.

Both the NDP and the Liberals have voted against each and every one of our job-creating tax cuts. We are keeping taxes low. The NDP believe in higher taxes. That would hurt our economy.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I want to talk about what our economy needs. One of the things it needs is good infrastructure. Unfortunately, that is one of the things missing from this bill, that is, a replacement for the big gap in infrastructure spending announced in budget 2013.

In my riding of Kingston and the Islands, we have a major east-west artery that passes over the main CN rail line. We need to have an overpass. Right now it is a level crossing. In another part of my riding, on Wolfe Island, we have a road that connects the winter ferry terminal to the rest of the island. That needs to be rebuilt. These are important pieces of infrastructure that cannot be worked on for many years because the extra money in the building Canada plan has been so low for a number of years. It was cut drastically, by roughly by 87% from last year to this year.

Why is the government cutting infrastructure right now when it is so needed?

[Kerry-Lynne Findlay, Conservative, Delta—Richmond East, BC]

Mr. Speaker, the Liberals continue to misrepresent what we are presenting through our build Canada fund. We are proud of the build Canada fund. It is going to seed infrastructure projects across this country. Every region of the country will benefit from our investment in infrastructure. We have made the gas tax fund permanent. That is something that all municipalities welcome. This past Friday I was in one of the municipalities in my riding. I met with the mayor and city staff to talk about how they can access the build Canada fund to provide for the infrastructure needs of those communities.

The truth is that we have the support of municipalities, provinces, and territories for the way we have put together our build Canada fund. The first part of it people took advantage of, and Canadians will see the advantages of this one too.

Frankly, this misrepresentation by the Liberals is irresponsible.