This bill is from the 42nd Parliament, 1st session, which ended in September 2019.
Bill Morneau Liberal
This bill has received Royal Assent and is now law.
This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.
Part 1 implements certain income tax measures proposed in the March 22, 2016 budget by
(a) eliminating the education tax credit;
(b) eliminating the textbook tax credit;
(c) exempting from taxable income amounts received as rate assistance under the Ontario Electricity Support Program;
(d) maintaining the small business tax rate at 10.5% for the 2016 and subsequent taxation years and making consequential adjustments to the dividend gross-up factor and dividend tax credit;
(e) increasing the maximum deduction available under the northern residents deduction;
(f) eliminating the children’s arts tax credit;
(g) eliminating the family tax cut credit;
(h) replacing the Canada child tax benefit and universal child care benefit with the new Canada child benefit;
(i) eliminating the child fitness tax credit;
(j) introducing the school supplies tax credit;
(k) extending, for one year, the mineral exploration tax credit for flow-through share investors;
(l) restoring the labour-sponsored venture capital corporations tax credit for purchases of shares of provincially registered labour-sponsored venture capital corporations for the 2016 and subsequent taxation years; and
(m) introducing changes consequential to the introduction of the new 33% individual tax rate.
Part 1 implements other income tax measures confirmed in the March 22, 2016 budget by
(a) amending the anti-avoidance rules in the Income Tax Act that prevent the conversion of capital gains into tax-deductible intercorporate dividends;
(b) qualifying certain costs associated with undertaking environmental studies and community consultations as Canadian exploration expenses;
(c) ensuring that profits from the insurance of Canadian risks remain taxable in Canada;
(d) ensuring that the dividend rental arrangement rules under the Income Tax Act apply where there is a synthetic equity arrangement;
(e) providing specific tax rules in respect of the commercialization of the Canadian Wheat Board, including a tax deferral for eligible farmers;
(f) permitting registered charities and registered Canadian amateur athletic associations to hold limited partnership interests;
(g) providing an exemption to the withholding tax requirements for payments by qualifying non-resident employers to qualifying non-resident employees;
(h) limiting the circumstances in which the repeated failure to report income penalty will apply;
(i) permitting the sharing of taxpayer information within the Canada Revenue Agency to facilitate the collection of certain non-tax debts; and
(j) permitting the sharing of taxpayer information with the Office of the Chief Actuary.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 22, 2016 budget by
(a) adding insulin pens, insulin pen needles and intermittent urinary catheters to the list of GST/HST zero-rated medical and assistive devices;
(b) clarifying that GST/HST generally applies to supplies of purely cosmetic procedures provided by all suppliers, including registered charities;
(c) relieving tax to ensure that when a charity makes a taxable supply of property or services in exchange for a donation and an income tax receipt may be issued for a portion of the donation, only the value of the property or services supplied is subject to GST/HST;
(d) ensuring that interest earned in respect of certain deposits is not included in determining whether a person is considered to be a financial institution for GST/HST purposes; and
(e) clarifying the treatment of imported reinsurance services under the GST/HST imported supply rules for financial institutions.
Part 2 also implements other GST/HST measures confirmed in the March 22, 2016 budget by
(a) adding feminine hygiene products to the list of GST/HST zero-rated products; and
(b) permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.
Part 3 implements certain excise measures proposed in the March 22, 2016 budget by
(a) ensuring that excise tax relief for diesel fuel used as heating oil or to generate electricity is targeted to specific instances; and
(b) enhancing certain security and collection provisions in the Excise Act, 2001.
Part 3 also implements other excise measures confirmed in the March 22, 2016 budget by permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.
Division 1 of Part 4 repeals the Federal Balanced Budget Act.
Division 2 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things,
(a) replace “permanent impairment allowance” with “career impact allowance”;
(b) replace “totally and permanently incapacitated” with “diminished earning capacity”;
(c) increase the percentage in the formula used to calculate the earnings loss benefit;
(d) specify when a disability award becomes payable and clarify the formula used to calculate the amount of a disability award;
(e) increase the amounts of a disability award; and
(f) increase the amount of a death benefit.
In addition, it contains transitional provisions that provide, among other things, that the Minister of Veterans Affairs must pay, to a person who received a disability award or a death benefit under that Act before April 1, 2017, an amount that represents the increase in the amount of the disability award or the death benefit, as the case may be. It also makes consequential amendments to the Children of Deceased Veterans Education Assistance Act, the Pension Act and the Income Tax Act.
Division 3 of Part 4 amends the sunset provisions of certain Acts governing federal financial institutions to extend by two years, namely, from March 29, 2017 to March 29, 2019, the period during which those institutions may carry on business.
Division 4 of Part 4 amends the Bank Act to facilitate the continuance of local cooperative credit societies as federal credit unions by granting the Minister of Finance the authority to provide transitional procedural exemptions, as well as a loan guarantee.
Division 5 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, broaden the Corporation’s powers to temporarily control or own a domestic systemically important bank and to convert certain shares and liabilities of such a bank into common shares.
It also amends the Bank Act to allow the designation of domestic systemically important banks by the Superintendent of Financial Institutions and to require such banks to maintain a minimum capacity to absorb losses.
Lastly, it makes consequential amendments to the Financial Administration Act, the Winding-up and Restructuring Act and the Payment Clearing and Settlement Act.
Division 6 of Part 4 amends the Office of the Superintendent of Financial Institutions Act to change the membership of the committee established under that Act so that the Chairperson of the Canada Deposit Insurance Corporation is replaced by that Corporation’s Chief Executive Officer. It also amends several Acts to replace references to that Chairperson with references to that Chief Executive Officer.
Division 7 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize an additional payment to be made to a territory, in order to take into account the amount of the territorial formula financing payment that would have been paid to that territory for the fiscal year beginning on April 1, 2016, if that amount had been determined using the recalculated amount determined to be the gross expenditure base for that fiscal year.
Division 8 of Part 4 amends the Financial Administration Act to restrict the circumstances in which the Governor in Council may authorize the borrowing of money without legislative approval.
Division 9 of Part 4 amends the Old Age Security Act to increase the single rate of the guaranteed income supplement for the lowest-income pensioners by up to $947 annually and to repeal section 2.2 of that Act, which increases the age of eligibility to receive a benefit.
Division 10 of Part 4 amends the Special Import Measures Act to provide that a finding by the President of the Canada Border Services Agency of an insignificant margin of dumping or an insignificant amount of subsidy in respect of goods imported into Canada will no longer result in the termination of a trade remedy investigation prior to the President’s preliminary determination. It also provides that expiry reviews may be initiated from a date that is closer to the expiry date of an anti-dumping or countervailing measure and makes amendments related to that new time period.
Division 11 of Part 4 amends the Pension Benefits Standards Act, 1985 to combine the authorities for bilateral agreements and multilateral agreements into one authority for federal-provincial agreements, and to clarify that federal-provincial agreements may permit the application of provincial legislation with respect to a pension plan.
Division 12 of Part 4 amends the Employment Insurance Act to, among other things,
(a) increase, until July 8, 2017, the maximum number of weeks for which benefits may be paid to certain claimants in certain regions;
(b) eliminate the category of claimants who are new entrants and re-entrants; and
(c) reduce to one week the length of the waiting period during which claimants are not entitled to benefits.
Division 13 of Part 4 amends the Canada Marine Act to allow the Minister of Canadian Heritage to make payments to Canada Place Corporation for certain celebrations.
Division 14 of Part 4 amends the Jobs, Growth and Long-term Prosperity Act to authorize the Minister of Infrastructure, Communities and Intergovernmental Affairs to acquire the shares of PPP Canada Inc. on behalf of Her Majesty in right of Canada. It also sets out that the appropriate Minister, as defined in the Financial Administration Act, holds those shares and authorizes that appropriate Minister to conduct, with the Governor in Council’s approval, certain transactions relating to PPP Canada Inc. Finally, it authorizes PPP Canada Inc. and its wholly-owned subsidiaries to sell, with the Governor in Council’s approval, their assets in certain circumstances.
Division 15 of Part 4 amends the Canada Foundation for Sustainable Development Technology Act to modify the process that leads to the Governor in Council’s appointment of persons to the board of directors of the Canada Foundation for Sustainable Development Technology by eliminating the role of the Minister of Natural Resources and the Minister of the Environment as well as the consultative role of the Minister of Industry from that process. It also amends the Budget Implementation Act, 2007 to provide that a sum may be paid out of the Consolidated Revenue Fund to the Foundation on the requisition of the Minister of Industry and to clarify the maximum amount of that sum.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-15s:
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
Madam Speaker, this government is doing things differently than the previous government in that we work with the provinces and we respect their jurisdiction.
Our minister has been clear—
Budget Implementation Act, 2016, No. 1Government Orders
Some hon. members
Oh, oh!
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
Madam Speaker, if members are interested in the answer I am providing it.
Our minister has been clear that she is working with the provinces to uphold the health accord and make improvements. Our government is committed to that. It is important to all Canadians.
Unlike the previous government, we do not impose our will on other jurisdictions. We work with people.
Budget Implementation Act, 2016, No. 1Government Orders
The Assistant Deputy Speaker Carol Hughes
I want to remind individuals here in the House that if they want to ask a question to please stand up as opposed to yelling the questions or yelling across the way.
The hon. member for Skeena—Bulkley Valley.
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Madam Speaker, never accuse Liberals of not having any sense of irony. I just heard my friend say that the Liberals are proud that they never impose their will just minutes after their House leader stood in his place to shut down debate, not on one bill but on two bills that have been introduced. He suggested that because opposition House leaders could not get along he was going to punish the Conservatives with one of their opposition days and stick it on a Friday, which is a short day. No, the Liberals do not impose their will.
What is more ironic is that when the House leader for the Liberals stood up to do this, the Liberals actually cheered and laughed. They found it funny that they were shutting down debate on Bill C-15 and Bill C-7, which precludes future negotiations with the RCMP allowing RCMP members to talk about things like sexual harassment. That is what the Liberals just did.
With respect to this procedure that we just saw introduced, the member said she was proud to be part of a government that at just this moment invoked a form of closure that will come tomorrow. Is she proud of this? That is exactly what the Liberals campaigned against seven months ago when the Conservatives were doing it.
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
Madam Speaker, very clearly, I am proud of my government. In fact, we were elected in October to deliver legislation. If my hon. colleagues wish to hold up the government and make every effort to not work with us when it comes to the appropriate amount of time for debate, at the end of the day, we were elected to bring forward legislation, and that is exactly what we intend to do.
Budget Implementation Act, 2016, No. 1Government Orders
Some hon. members
Oh, oh!
Budget Implementation Act, 2016, No. 1Government Orders
The Assistant Deputy Speaker Carol Hughes
Once again, I would just ask members to please respect others who are speaking.
I have time for a very brief question. The hon. member for London North Centre.
Peter Fragiskatos Liberal London North Centre, ON
Madam Speaker, on the matter of pride, I am extremely proud to have a colleague who has served in local government and has served her community proudly.
I would ask my hon. colleague if she could comment on infrastructure and the investments our government is making in infrastructure, and how they will help municipalities.
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
Madam Speaker, at the end of the day, there is only one taxpayer. By investing in infrastructure, that is going to help municipalities, and the taxpayers will pay lower taxes. This will benefit small businesses and the community at large.
Robert Aubin NDP Trois-Rivières, QC
Madam Speaker, six or seven months ago, we were all busy campaigning, and the Liberal candidates were visiting all of the ridings with suitcases full of promises. Then, in the throne speech, they tried to give us what seemed like a wide range of measures.
In the budget, the next step, they started being more specific and they realized that they would likely be unable to keep all of their promises or even most of them. As a result, today, we find ourselves dealing with what is quite frankly a rather sad budget implementation bill. What makes the whole situation even sadder is that we have just learned, this minute, that time allocation will once again be imposed on the House. I am having an increasingly difficult time distinguishing between the Conservatives and the Liberals. Good God. If only we could go back to the polls, but I know that that is not going to happen any time soon. In the meantime, I would like to make a few comments about this budget implementation bill.
Not everything about the budget implementation bill is bad. The Liberals are taking the Conservatives' usual approach, and so once again I am having a hard time distinguishing between them. The Liberals introduced an omnibus bill that forces us to vote either yes or no. There is not really any other name for this sort of bill. I would like to give an example of one of the dilemmas I am facing, which will ultimately force me to vote against this bill.
Let us talk about employment insurance, for example. I fully support getting rid of the old 910-hour eligibility requirement for new workers eligible for employment insurance benefits. However, considering that fewer than four out of 10 workers who have contributed to the plan end up being eligible when disaster strikes, such an insubstantial measure is just not enough. I am also disappointed that there is nothing in the budget, the implementation bill, or even the Liberal promises about the universal 360-hour threshold that all stakeholders have called for. The Liberals seem to be taking a piecemeal approach by scattering bits of funding here and there to give people the impression that everyone is going to be happy. Most likely, nobody will be happy.
Seniors are a particularly important segment of the population in Trois-Rivières because the proportion of people over the age of 65 there is significantly higher than in Quebec ridings as a whole. When it comes to seniors, I can say that enhancing the guaranteed income supplement has my full support. However, strangely, even though this measure should be a priority, it will only come into effect on July 1 of next year, which is a bit late considering that seniors' needs have been pressing for quite some time now.
If the government truly believes that the solution is to improve the guaranteed income supplement, restore the age of eligibility for old age security to 65 from 67, and maintain income splitting for seniors, then it must also work with the provinces to improve the Quebec pension plan and the Canada pension plan.
According to a recent Broadbent Institute study, the programs designed to provide some relief for vulnerable seniors are woefully inadequate. To combat marginalization and poverty among single seniors, the guaranteed income supplement needs to be increased by more than 10%.
As in many regions in Quebec, the populations in Mauricie and Trois-Rivières are aging. According to a projection by the City of Trois-Rivières, by 2031, the number of seniors will increase by 52.2%, which means that there will be 23,469 people aged 65 and over. The median income, not the average income, of seniors in Trois-Rivières is estimated at $18,702. Needless to say, the tax cuts promised and implemented by the Liberal government will do nothing for them. Statistics aside, during my term, I came to meet with hundreds of seniors and I witnessed for myself how vulnerable many of them are.
We could also talk about the promise made regarding Canada Post, which was fulfilled late or only partially fulfilled. Postal service was supposed to be restored in certain areas that were considered among the most important ones. All of that is on hold, waiting for the findings of a task force that was just created.
Once again, not only did a great deal of time pass after the election campaign before the promise was kept, but the promise itself was watered down. Given the Machiavellian choices the Liberals want to impose on us, there can be only one clear answer when the time comes to vote: a resounding no.
Furthermore, except for a few miserly measures, this budget does nothing to help the pyrrhotite victims or Canadian workers, and it will hurt our regional economies, especially in the Trois-Rivières area.
Although I applauded the appointment of the Parliamentary Secretary to the Minister of Finance as the government spokesperson for the pyrrhotite file, I must admit that the disappointment I feel today is just as deep as that of the victims. Let us be clear: the final offer is $10 million a year for three years.
During the election campaign, the Prime Minister, a candidate at the time, told us that the Liberals understood the human and financial plight of Mauricie families, who account for roughly 4,000 homes. He later said that the Liberals' final offer was $10 million a year for three years, for a total of $30 million. We might hope to support approximately 75 victims a year, or 225 by the end of the term. What about the thousands of others? The answer is simple: the government is shirking its responsibility.
Clearly the Liberals are truly out of touch with the human and financial distress that the families in Mauricie are experiencing daily. For five years, the NDP has been calling on the federal government to acknowledge its share of responsibility, and after four and a half years of categorical refusal by the Conservatives, the Liberals are going a step further and contradicting themselves.
Here are some examples that are very clear and very easy to understand. The Liberal member for Saint-Maurice—Champlain recently said that pyrrhotite was a provincial concern. We have heard that one before.
However, a few weeks after the election, he said the exact opposite. I quote: “We will help the victims because human misery knows no borders or jurisdictions.”
How can we trust a politician who changes his mind like he changes his clothes? Therefore, I will continue to point out the contradictions in the positions of the Liberal member for Saint-Maurice—Champlain and his government.
SMEs are the economic heart of all of Canada's regions, including the Trois-Rivières and Quebec City areas. After promising SMEs that they would reduce their tax rate, the Liberals are breaking their promise. However, this government is keeping its costly and unnecessary subsidies for its friends, the big banks and major corporations.
Is the Liberals' disdain for SMEs really surprising? After stating that small businesses are tax shelters for the wealthiest Canadians who want to pay less taxes, the Prime Minister could also have added that that also holds true for large corporations such as Bionest in my region, which approved payments to a shareholder through a tax haven.
The current Parliamentary Secretary to the Minister of Finance, who sat on Bionest's board of directors, approved these legal but, to say the least, questionable practices. There is more to come.
In my region, SMEs are vital to job creation. I would have liked to talk about a small business in my riding, Innovations Voltflex. Unfortunately, I do not have enough time left to speak to such a broad topic.
I hope to have the opportunity to continue during questions and answers.
Budget Implementation Act, 2016, No. 1Government Orders
Waterloo Ontario
Liberal
Bardish Chagger LiberalMinister of Small Business and Tourism
Madam Speaker, I rise to take this moment to talk about small businesses.
I hear a lot of points being raised when it comes to our job creators. We know that we support our small and medium-sized business owners.
Do the investments in budget 2016, the $11.9 billion in infrastructure that we are hearing about, actually support and benefit our small business owners? The $500 million in broadband, for rural and remote areas, to allow them to be competitive; the $800 million for innovation; the $50 million to the industrial research assistance program; the $50 million to Destination Canada; and the list goes on: do these investments support our small and medium-sized businesses?
Robert Aubin NDP Trois-Rivières, QC
Madam Speaker, the fact that Internet infrastructure is included in the measures to help SMEs shows how little the government understands their immediate needs. Of course that is important, but it will not directly help SMEs balance their budgets. I would also like to quickly mention that a study conducted by the Canadian Federation of Independent Business indicated that one-third of small business owners earn less than $33,000 a year. That means that even the tax cuts and other measures for the middle class will not affect small business owners and will not support that industry.
Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC
Madam Speaker, I would like to thank the member for Trois-Rivières for his excellent speech. He still had more to say, but he was not able to do so.
Every budget is a matter of choice. I would like to talk about one of the choices that the Liberals did not make, and that is the choice to seriously address the problem of tax evasion and tax havens. We have a Liberal government that regularly pats itself on the back in the House by saying that it is investing money in the Canada Revenue Agency to uncover fraud.
What the Liberal government never says, however, is that all the bilateral agreements that Canada has with tax havens are still in effect. That means that most tax avoidance and tax evasion is not committed by fraudsters but by people who are backed by laws and protected by the Liberal government.
Does my colleague think that the government should seriously tackle this problem and put an end to the bilateral agreements that Canada has with tax havens?
Robert Aubin NDP Trois-Rivières, QC
Madam Speaker, I thank my colleague from Rosemont—La Petite-Patrie for his extremely relevant question, which essentially answered itself. The answer is in the question, but if I could take it one step further, I would bet that we will soon hear the government telling us that this is a virtually impossible situation, that we need to look at it from an international perspective, and that every country would have to be on the same page.
For every country to agree, we need a leader, and we do not seem to have found one yet.