Budget Implementation Act, 2016, No. 1.

An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures

This bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from 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:

C-15 (2022) Law Appropriation Act No. 5, 2021-22
C-15 (2020) Law United Nations Declaration on the Rights of Indigenous Peoples Act
C-15 (2020) Law Canada Emergency Student Benefit Act
C-15 (2013) Law Northwest Territories Devolution Act

Votes

June 13, 2016 Passed That the Bill be now read a third time and do pass.
June 8, 2016 Passed That Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
June 8, 2016 Failed
June 8, 2016 Failed
June 8, 2016 Failed
May 10, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 10, 2016 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, since the bill does not support the principles of lower taxes, balanced budgets and job creation, exemplified by, among other things, repealing the Federal Balanced Budget Act.”.
May 10, 2016 Passed That, in relation to Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, not more than one further sitting day shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:25 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, it is a pleasure to speak today to this budget bill. Bill C-15 is very important to Canadians, but unfortunately, time allocation was imposed by the Liberals.

My eyes have been tested and I am red-green colour-blind, but I have been in Parliament for over 10 years, and I think I have become red-blue colour-blind, because I see the same things happening over and over again. It is difficult for me to try to make sense of all this.

Hon. members are heckling again, as usual, but that is okay. I know they do not like to hear any criticisms or complaints, despite the sunny ways and despite the ability to have a moment in the House. That is fine, I will give them that, but the reality is that every member will not have the opportunity to participate because of closure that was put on the debate.

When the Liberals were on this side, they would attack the government over and over about the use of closure. There were over 100 closure motions by the Conservatives. Lo and behold, the Liberals got the ring, put it on real quick, and sure enough, down came the hammer of closure of debate on a number of things, including this budget bill. We are talking about $200 billion; no problem. The Liberals do not want to hear from members of their own backbench. In fact, most of them actually will not be speaking. It is too bad.

I am sure their constituents would like to know how important this budget is to their ridings, all the popular things, the things they believe in. Members could talk about it, but apparently, they are not allowed. Closure has been put on it. It is unfortunate. I do not know whether it is because they cannot test their mettle in this place. Maybe they are afraid that the public will understand what is taking place as we move away from the so-called new Parliament that we were supposed to have, to the same old system.

It is interesting that the Liberals defend their use of closure by using the bar of the previous government. I can say that bar is much lower than this one here. That bar is so low there is no way anyone could limbo under it at any point in time. That is no defence. Promises were made and parliamentarians, including some of the Liberal members, want to engage in conversation about issues, whether at committee or in the chamber.

The industry committee does a very good job of having that healthy debate. Witnesses have appeared at committee, people from different departments and ministers, and now there is a new study with regard to manufacturing challenges in our country. That has been done very much in a positive manner. People expressed different opinions, but it was done with respect. There is a set of rules in that committee. We do not see committees closing down debate right now, but unfortunately, that is what is happening here.

There was a time when budgets would pass, but that stopped and became much more evident during the Paul Martin administration. That was the beginning of the era of slipping different pieces of legislation into the overall budget. In the United States, they call them riders, the things that tag along to get a particular budget or other legislation passed. They will attach all kinds of things for their ridings or areas to get it done.

What we have here is critical to democracy and was spoken about many times right here in the last Parliament about how it undermined legislation, democratic reform, the ability for members to have a place to state their cases for their constituents. This is supposed to be a country united, not divided by these tactics. We have lost that.

Here is the problem that we faced with the previous administration regarding some of the processes that it followed. Guess where they are? A lot of those things are in the Supreme Court. A lot of the issues get through here. They do not go to committee for vetting. There are no suggestions, whether the government likes them or not, and then they decide whether to move on, but at least they have had a chance to think about it.

I remember the days when we would find many technical and other errors in bills that even if we did not agree 100% with the bill, the bill was carried at the end of the day, through democracy. It was not held up because we did not do our business.

That is what we have in this bill, between the banking information that is going on, retroactive legislation going back in time to change things, and other areas that are affected significantly.

We look at that, and we have some very serious issues that are taking place in this House. One of ours is veterans. I was particularly perturbed by the finance minister this morning alleging that we did not support veterans because we did not actually support the budget bill.

I rose in this House to challenge that assertion because every single member, whether we like something or not, stands up for our veterans and their perspective. They fought for that. They are people like Earl Scofield, who has passed away. He was one of my heroes and mentors. He was an aboriginal senator. He flew 17 missions in the tail turret. They called him “Boots” Scofield because one time when they were taking off, they hit the trees and crash-landed. He woke up, ran from the plane, and then realized he did not have his boots on anymore. That is what he was known as. Guess what? He believed in his democratic rights and he was at the NDP founding convention because he believed in different things.

Many other people from my community have gone to war, to Afghanistan most recently, but all the way back to the War of 1812. We have personally been touched by this ourselves.

I reject at all times the insinuation, especially from a senior Liberal cabinet minister, that we do not support our veterans whether we are NDP, Liberal, or Conservative, just because we disagree on an issue. That is not going to be the case on our watch here. Our veterans are offended when they are put in that perspective.

This budget bill is going to cause a lot of significant problems.

I want to touch on a couple of things that are dear to my local community. The first is, most importantly, what we see taking place with the Gordie Howe International Bridge. It was in Conservative budgets previously. They are now approximately six months behind in the request for proposals for the consortiums that would build the bridge. They are blaming incompetence, mismanagement, and all those things, but at the same time, they are now the decision-makers. I am really concerned what message is being sent to industry and others about Canadian manufacturing, agriculture, and other types of investments that are very important to the busiest border crossing in North America. Basically, in my riding, 35% of our daily trade with the United States takes place every single day along two kilometres of our border. Very often Parliament has been united in getting this new border facility done, but we have not seen advancement for the RFPs.

We fought a lot for innovation, especially for manufacturing and other types of work. AUTO21 is one of those things. It is a network for excellence. It is being sunsetted and is not going to get the funding, despite bringing in over $1 billion of value-added revenue for innovation and financing from other institutions and also jobs for Canadians. Basically, from 2001 to 2015, it has received funding of around $81 million but received about $70 million in actual net benefit derivatives directly attributed to it, plus $1 billion for the secondary work that is done. What has it done? Two thousand four hundred student researchers are trained. There are some 685 industry and public sector partners, 500 researchers across Canada, 200 research and technology transfer projects. Some 48 academic institutions evolved. There have been 6,700 publications and reports, 320 patents, licences, and commercialization agreements, and $141 million invested in auto research alone from this institution.

Unfortunately, AUTO21 is being run into the ground because of an ideology set up by a previous administration which said that after 14 years and despite all of the building, it is done.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:35 p.m.

Liberal

Adam Vaughan Liberal Spadina—Fort York, ON

Mr. Speaker, having sat through that speech, I think what the member wants beyond reinvesting in the auto fund is to speed up the RFP for the bridge. What date would he like the RFP issued by?

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:35 p.m.

NDP

Brian Masse NDP Windsor West, ON

Today, Mr. Speaker, because it was due six months ago.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:35 p.m.

Conservative

John Brassard Conservative Barrie—Innisfil, ON

Mr. Speaker, one of the elements that the Liberals have purported throughout this whole budget process, in fact since they took office, is a reduction in the middle-class tax rate. I would call it, and I think others on this side of the House would agree, a middle tax fraud. It is a shell game. What the Liberals give, the Liberals certainly take away.

I am wondering if the hon. member could comment on how he feels the Liberal middle tax fraud is working.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:35 p.m.

NDP

Brian Masse NDP Windsor West, ON

It is fraudulent, Mr. Speaker. That is how it is working. The reality is that we have a situation to correct the balance and protect those individuals who need disposable income to maintain their homes or to make sure their kids get an education. For some people it is the ability to get prescription drugs and other types of necessary medicine in order to have a healthy lifestyle so they can be productive in Canadian society, whether it be working, volunteering, or helping in their communities.

It is difficult to accept these allotments that are taking place and not be compelled to speak out that they are going to the wrong people. We should be rebuilding the middle class while we can.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:35 p.m.

NDP

Cheryl Hardcastle NDP Windsor—Tecumseh, ON

Mr. Speaker, I would like to ask my hon. colleague to comment on the budget bill being a showcase of election campaign fiction and a showcase of broken promises. Perhaps he could hone in on the issue of tax loopholes and small businesses, the gems of opportunities which the budget is epically failing.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:35 p.m.

NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, a specific example of an election broken promise is that Liberals in my area promised that my single events sports betting bill, Bill C-221, would be put in the budget. It would become a regulated industry under my bill and would allow money to be shifted away from organized crime. It would provide jobs and new revenue sources for the government in terms of accountable funds. My bill is still out there. It could have been put in the budget. That was a promise made by the Liberals during the campaign.

Many of the economic studies that have been done related to this have shown that it would benefit small business. The redistribution of those funds from organized crime would affect tourism in a positive way, economic development through the management aspect with regard to single events sports betting, and also protect our billions of dollars' worth of infrastructure from the United States. That would take that industry allocation out of the equation. It would also provide desperately needed resources for public expenditures and investment opportunities. It would provide a revenue stream for those who have gaming problems.

We have all of that versus allowing $10 billion going to organized crime and its associations per year, and another $4 billion offshore that they do want to have a regulated environment that is not coming back at all and is not accountable. That is one specific example that would affect all of us in a positive way and it would reduce the revenue that organized crime depends upon every single day.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:40 p.m.

The Assistant Deputy Speaker Anthony Rota

The hon. member for Pierre-Boucher—Les Patriotes—Verchères has about four minutes before we move to the vote.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:40 p.m.

Bloc

Xavier Barsalou-Duval Bloc Pierre-Boucher—Les Patriotes—Verchères, QC

Mr. Speaker, since I have just four minutes, I will try to be brief.

I want to start by saying that the Bloc Québécois will not support Bill C-15. This is probably not a surprise to the government, since we have already expressed our opposition to the bill for many reasons, which I will try to summarize.

Before I talk about the negatives, I do want to mention that the budget does have some positive points. For example, the money invested in infrastructure is positive, but we still do not know how the investments will be made. Will an agreement be signed with the Government of Quebec, and will it be signed fast enough for the Government of Quebec and businesses to benefit? We have some serious questions about this.

Another measure I want to highlight is the return of tax credits for labour-sponsored funds. This savings tool is very important and worthwhile for middle-class Quebeckers.

There is also the universal child care benefit, which will be non-taxable from now on. The government is also combining all of the old benefits because they were so confusing. That is very positive. Unfortunately, however, they did not take the opportunity to eliminate the taxation of enhanced benefits imposed by the Conservatives. That could have been done.

I also want to mention the middle-class tax cut, which is not actually going to help the real middle class, just the upper middle class. Those are the people who are doing relatively well financially but who might run into a few financial troubles. They are not the richest segment of the population, so cutting their taxes is not a bad thing, but the government did not cut taxes for the right people.

There are some things that we strongly condemn, such as the fact that health transfers to the Government of Quebec and the provinces will be indexed at just 3% per year even though we all know that health care costs go up by 5% to 6% per year. That represents an $800-million shortfall for the Government of Quebec, and once again, the federal government will benefit from that shortfall.

We could also talk about the changes, and the lack of changes, to the employment insurance fund. We have been fighting for over 20 years to get the government to stop dipping into the EI surplus. Yet again, however, it plans to take $1.7 billion from the EI fund for the 2014-15 fiscal year.

Using money that belongs to workers to top up the government's coffers is unacceptable, especially given that not everyone pays into the program. After a certain income level, people no longer contribute. Money that belongs to the workers should serve the workers.

There is one piece of good news regarding employment insurance: new measures will increase the potential number of weeks of benefits to 20 in certain regions that have seen a huge increase in unemployment numbers. However, the problem lies in the regions that were chosen. According to our information, the regions chosen are in the Northwest Territories, Ontario, Manitoba, Alberta, British Columbia, Saskatchewan, Newfoundland, and Nunavut.

I am not sure if my colleagues noticed, but Quebec was not included in that list. This is because the unemployment rate was already quite high in Quebec and it did not go up as much as in some other areas. Quebeckers are suffering just as much as everyone else, but they will not benefit from those improvements to EI.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:45 p.m.

The Assistant Deputy Speaker Anthony Rota

It being 5:45 p.m., pursuant to order made earlier today, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the second reading stage of the bill now before the House.

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

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:45 p.m.

Some hon. members

Agreed.

No.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:45 p.m.

The Assistant Deputy Speaker Anthony Rota

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

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:45 p.m.

Some hon. members

Yea.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:45 p.m.

The Assistant Deputy Speaker Anthony Rota

All those opposed will please say nay.

Budget Implementation Act, 2016, No. 1Government Orders

May 10th, 2016 / 5:45 p.m.

Some hon. members

Nay.