Bill C-15 (Historical)

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

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.

Budget Implementation Act, 2016, No. 1

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, I gratefully appreciate knowing that there is a bit of help coming specifically to families in communities that are, in some cases, ravaged by poverty. I believe the families in my community will also appreciate that. However, it does not touch on the core issues. There were so many people in my riding who spoke about not having a family, being single or being older. What will they do? I talked to people in my communities who were facing such challenges as three people living in a one-bedroom apartment. We need to ensure that we are looking at equality in a wholesome way and that we are answering the cries of the communities we serve.

I also want to say that although the money will help, it does not touch the core need for affordable child care. When I knocked on doors across my riding, I talked to many women who had to make desperate choices to not work because they simply could not afford to work. Therefore, when they have to make those choices, it is not fair or right. We have to do our job in the House and discuss these important issues and ensure that we are doing what we need to do. Although the child tax benefit will help to support those families, it certainly will not answer that specific need. That money does not create more affordable child care or enough spaces in the communities that I serve.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I agree with what my colleague had to say about the small business tax and the disappointment of seeing that broken promise come out in this budget. I wonder if she could comment on other broken promises that we have seen in this budget that are disappointing.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, it is a huge broken promise for small businesses across this country that were relying on that tax break to give them the support they need. The reality is that in this changing economy, small businesses are the very backbone. They are the organizations and businesses that are helping us pay for things in our community. They are volunteering their time. They are donating money to local community organizations. If we do not support those businesses, it is so much harder on all of our communities.

In terms of broken promises, I think we have seen some things that we should really be concerned with. I mentioned the GIS. People need resources now. They are having to wait until July.

Another big concern of mine is with respect to some of the infrastructure promises, where we were told one number and given a half number. Specifically, if we look at the file around transit, I represent small communities, and the challenge for them is to have transit services that work. Often when cuts happen, it is the small communities that pay. I will be watching for that.

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, I think I will have some trouble following the grim reaper of questions.

I have a very quick question. How did the member and the NDP plan to carry through on their promises when they promised not to have any deficits, ever, and to pursue the policy of austerity?

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, I gratefully accept the question from the member opposite.

Our party felt very strongly that the important thing was to look at the reality that large corporations are taxed way below average across this world. We need to increase some of that money because it is about making decisions and having priorities. Therefore, we need to tax people who have more, support the people who have less, and take a step in creating equality across this country. I am very sad that the opposite side did not choose to really work for the people of Canada and continues to work for larger corporations.

[The Deputy Speaker, Bruce Stanton]

Before we resume debate, I must inform the hon. member for Mount Royal that there are only four minutes remaining for his speech.

The hon. member for Mount Royal.

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Speaker, I would like to thank all of the hon. members who spoke before me in this debate today. This is the second time I have had the opportunity to speak in the House on Bill C-15.

To try to say something different, I want to start off by focusing on a couple of the things I have heard.

This morning, I heard a Bloc Québécois member accusing the government of neglecting Quebec. He also accused the government members from Quebec of neglecting Quebec.

Then I heard another member from Alberta saying that the budget disproportionately helped eastern Canada and affected Alberta.

I just want to say that we can be upset and disagree with provisions in the budget, but I would call upon all of us, as Canadians, to recognize that we are here as members of Parliament, not only to stand up for the people of our riding and our region, but also to stand up for all of Canada.

Therefore, I would call upon us not to continually divide ourselves by region, saying that one region is favoured over another, but to recognize that all of us believe in the best interest of Canada, and that we are furthering policies that are in the best interest of Canada.

I would only suggest that that be how we start off in this debate. I am pleased to be able to talk about Bill C-15, because coming out of an election campaign, I saw a lot of things going on in my riding that were disconcerting. I am very happy that some of these situations are alleviated by provisions taken in Bill C-15 and in the budget as a whole.

Number one is the Canada child benefit. It was frustrating, as we all walked door to door during the election, meeting so many families with children living in poverty. I am lucky to represent a riding that has a very affluent side, but we also have a very poor section. I got to meet families living on very low incomes with children, who had to question whether they had enough money to put their child in an after-school program as well as feed them.

All parties, whether Conservative, Liberal, or New Democrat, agree that we want Canadian children to start out with a fair chance, to have a full belly, to be able to participate not only in primary and secondary school but to go to university or trade school or whatever option they want post-secondary, and to be able to participate in after-school sports or arts or other programs.

The Canada child benefit says we are focusing on the poorest Canadians, we are focusing on those parents who earn, for example, less than $30,000 a year, and saying they are going to get $6,400 tax-free for children below the age of six and $5,400 tax-free for children above the age of six. That makes a real difference.

Whatever we think of the whole budget, whatever we think of Bill C-15, I certainly hope we are able to applaud that measure.

As well, I want to focus on seniors. One of the things that was also disconcerting was seeing the number of seniors in my riding living in poverty, widows especially, living alone in their 80s and 90s, with no family in Montreal to support them. These people will benefit from the enhanced guaranteed income supplement for single seniors, of 10%.

I will resume my comments later.

[The Deputy Speaker, Bruce Stanton]

The hon. member for Mount Royal will have six minutes for his speech when the House resumes debate on this motion.

The House resumed consideration of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.

[The Speaker, Geoff Regan]

The hon. member for Mount Royal has six minutes remaining.

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Speaker, I was talking about the measures in Bill C-15 to help our seniors. I believe that it is very important to take note of all the measures for seniors in Bill C-15 and in the budget.

I was talking about the guaranteed income supplement and the extra 10% that single seniors can receive, up to $947 per year. However, what is also important is that where seniors are required to live apart because one of their health conditions or one of their circumstances requires that they be in a seniors residence or a care home or other places, we are allowed to now treat them as two separate individuals for the purpose of these supplements. This means that where they were losing money because they were married or living together common law, now they will not be penalized for that. That is also important.

I also want to talk about the $200.4 million that is going to improve social housing for seniors, to renovate apartments to help seniors live in their houses for longer.

As we all know, seniors benefit from residing in their residences for as long as possible. We do not want our seniors to be forced into hospitals or institutions before they need to be there. With proper management, with proper accessibility for the handicapped, and with proper services such as bringing in caregivers from health institutions to bathe seniors, we can leave seniors in their homes longer, and they will have an improved quality of life. I hope we can have agreements with the provinces to ensure that the monies in the budget that we intend to transfer to the provinces for health care go toward helping seniors live in their homes for as long as possible. That will continue to improve quality of life for seniors at home.

I also want to talk about another group of people in my riding who I met with a lot during the campaign who were troubled, which are students. Today, students are struggling, as we all know, with the rising cost of tuition and the massive debt they need to incur. It is low compared with our neighbours in the United States, but still high by Canadian standards. Where students have accumulated more and more debt, they want measures to help them afford to go to college, to university, to vocational training.

We have improved the Canada summer grants program by allowing a 50% increase in the amount of money that all classes of individuals can receive in grants, including part-time students. We are enhancing the Canada student loans program by saying that they do not need to repay student loans until their income reaches $25,000, and introducing more flexibility in terms of repayment measures for Canada student loans.

My NDP colleague was very proud that 320 students were hired in his riding. In my own riding 271 students were hired. Twice as many students were hired to work in our ridings as last year.

I believe that many of my colleagues are very pleased with the investment we made in summer jobs for students.

One other thing is training and apprenticeship programs in this budget. It is great to come out of university, but if students do not find jobs, they are still living in their parents' basement. We do not want perpetual living in parents' basements for our 20-something and 30-something generation. The monies that are going to enhance finding people jobs, going into apprenticeship programs, going into training, has the potential to help many Canadians of the younger generation.

I also want to point out the investments in our rural communities.

My hon. colleague from Laurentides—Labelle keeps talking about the lack of Internet in his community. That is also the case for many of my colleagues who live in rural regions in Canada.

I am very pleased and grateful that we invested $500 million to improve Internet service in the regions of Canada that need it.

I also want to talk about our veterans. I think we all appreciate the incredible service that many women have for generations given to our armed forces. Our Second World War veterans are old now. They are in their late eighties, their nineties, or they are over a century old. They deserve not only our respect but our help in order to get the best services to which they should be entitled, more money for front-line services. Reopening the veterans offices is something that is very important to Branch 97 of the Legion, the Frederick Kisch brigade in my riding, and Legions all across the country.

As mayor of Côte Saint-Luc, I was very proud that we found free space for our Legion in the city. I know that all members from all parties want us to make sure that benefits for our veterans are the type of benefits they are entitled to by virtue of the incredible service they have given this country.

In conclusion, I believe the bill will help Canadians, enhance our middle class, and make our Canada a stronger and better place. I am pleased to support Bill C-15.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I wonder if my colleague could provide some comment in terms of one of the most progressive moves that I have seen in literally 10 or more years; it has been a long time. The Canada child benefit program will lift literally tens of thousands of children out of poverty. I believe it is one of the focal points of this particular budget, which in the years ahead, people will reflect on as the budget that established this fantastic social program.

Could the member provide some comments in terms of what he thinks about this program, and possibly in regard to the increase to the guaranteed income supplement, which supports tens of thousands of seniors in all regions of our country?

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Speaker, I had started my speech by talking about the Canada child benefit, because I believe it is probably one of the most innovative and important elements of this budget.

The Canada child benefit directs money to those who need it the most. Couples or singles who are raising children, earning under $30,000 in income per year, will get $6,400 tax-free for children below the age of six, and $5,400 tax-free for children between six and 18.

What I saw during the election campaign in parts of my riding were many families who were struggling to decide how to use the small amount of money they had, struggling to decide between feeding kids and putting them in after-school sports. I know that this measure will really help many children in Canada come out of poverty.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, on the children's benefits program, since the member was talking about how great the program will be, maybe he could tell us why in the budget's annex 1, on page 240, which the budget implementation act is supposed to make law and implement, the children's benefit, in total numbers, actually starts going down as of 2017-18. It goes down every single year into the future, to 2020-21.

I would ask the member if his government intends to cut it back, cut it down, shred the program in the future, because that is what the numbers are showing. It actually shows the numbers going down year after year in the very Liberal budget that is promoting this children's benefit program.

What is the truth here?

[Anthony Housefather, Liberal, Mount Royal, QC]

Mr. Speaker, on the Canada child benefit in terms of amount, I do not believe there is any intention that I have seen in this budget to change the actual amounts that families would be yielded under the benefit. I would have to review the document for the future years in terms of how the member is calculating it, but I do not believe there is an intention to decrease the actual amounts received per child in future subsequent years.