An Act to amend the Income Tax Act (golfing expenses)

Sponsor

David Tilson  Conservative

Introduced as a private member’s bill. (These don’t often become law.)

Status

Introduced, as of June 1, 2016

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Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends subparagraph 18(1)‍(l)‍(i) of the Income Tax Act to permit the deduction of an expense incurred by a taxpayer for the use of a golf course or facility.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Bill C-243--Employment Insurance ActPoints of OrderRoutine Proceedings

November 23rd, 2016 / 3:20 p.m.
See context

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Mr. Speaker, I rise today to contribute arguments as to why my private member's bill, Bill C-243, would not infringe upon the financial initiative of the crown and therefore would not require a royal recommendation.

I appreciate the time of this House to present these arguments. As you know, Mr. Speaker, this is the only opportunity I have to do it, and I have to do it orally to get it on the record, so I apologize in advance for the time it will take to do that.

I want to begin by outlining exactly what my bill would do.

The first part would provide for the development of a national maternity assistance program, and the second part would amend section 22 of the Employment Insurance Act to expand the window of time in which existing maternity benefits could be taken if a woman worked in a hazardous job that posed a risk to her maternal health. Specifically, it would allow women to begin taking their 15 weeks of maternity benefits 15 weeks prior to the due date, rather than just eight weeks prior, as the current rules allow.

The argument I am putting forward today will focus on addressing the amendments to the Employment Insurance Act under part 2 of the bill. I will show that Bill C-243 would not increase or change the total benefits an individual is entitled to and therefore would not constitute a new and distinct expenditure.

My argument has two parts, and I will be citing both academic literature, in particular by Lukyniuk and Keyes in the Canadian Parliamentary Review, as well as relevant parliamentary precedent.

First, I will briefly show that Bill C-243 would not increase or change the total benefits an individual is entitled to and therefore would not constitute a new and distinct expenditure.

Second, I will show that these changes would not substantively alter the objects or purposes of maternity benefits. In other words, I will be arguing that it would not create or envision a new function.

The first thing to note is that there is a general authorization for EI expenditures that is sufficiently broad to encompass the provisions of the bill. To illustrate this, consider the comment on royal recommendations from Keyes, 1999, on page 19:

...an amending bill that merely re-enacts or consolidates existing expenditure provisions does not require the recommendation.

The provisions contained in Bill C-243 would simply reallocate or shift existing maternity benefits, which are already authorized under the Employment Insurance Act. As such, the changes would fall within the purview of a royal recommendation, which provides for the general authorization of EI expenditures.

Allow me to further explain, with reference to specific examples, why this modest shifting of benefits would not introduce new and distinct expenditures. There are four elements that must be considered to substantiate this claim.

The first obvious point is that the bill would not increase the amount of benefits paid to an individual. Since the amount an individual is entitled to per week would not change, there is no concern that it would affect estimates or payments from the consolidated revenue fund.

This differentiates Bill C-243 from other private members' bills that were deemed to require a royal recommendation, such as past bills C-278 and C-279.

Second, Bill C-243 would not increase the benefit period or the number of weeks an individual is entitled to claim. Eligible recipients would still only be entitled to 15 weeks of maternity benefits. The only difference would relate to the window of time in which these benefits could be taken. I want to be very clear that this would be the only change.

In this way, Bill C-243 could be differentiated from several other bills, such as Bill C-278, which sought to increase EI sickness benefits from 15 to 50 weeks.

Third, Bill C-243 would not change the eligibility requirements such that more individuals would become eligible for EI.

Whereas bills C-279, C-265, and C-280 would have changed the qualification requirements, and thus expanded how many people could access benefits, Bill C-243 would not do this.

For example, in the case of Bill C-279, the Speaker explained that:

...more individuals would be eligible to receive EI benefits and those currently eligible would receive increased benefits.

Fourth, since Bill C-243 would simply shift existing entitlements, the only costs associated with this legislation would be administrative, and it has been well established in previous rulings that these administrative costs would not require spending for a new function. Instead, they would be operational costs that are part of the department's ongoing mandate. As such, they have constantly been ruled as not requiring a new royal recommendation.

To summarize my argument that spending under this bill is not new and distinct, I want to quote Keyes, 1997, who argued on page 20 that royal recommendation is not for “Provisions authorizing charges that are already or were previously authorized by Parliament, for example, a bill consolidating or revising existing legislation or authorizing spending for a particular group of people already covered under general legislation”.

In fact, that is exactly what this bill does. It authorizes spending for a particular group of people, women working in hazardous jobs, who are already covered under general legislation, in this case, the Employment Insurance Act. While Bill C-243 does shift the window of time for when an individual can receive maternity benefits, it must be understood that these are benefits that many women are already entitled to. They are not new and distinct.

I will now concentrate on the second reason why my bill might require royal recommendation, which is whether or not it fundamentally changes the objects or purposes of the spending. In other words, does the bill envision a new function for maternity benefits? The central question on which you will have to rule, Mr. Speaker, is whether El maternity benefits are currently intended to protect the health of the mother and her unborn child. If this function exists under the current spending regime, my bill would not require royal recommendation, as it simply shifts existing benefits in a manner consistent with the existing purpose.

I will present several arguments to show that maternal health is one of the functions, if not the primary function, of maternity benefits. I will begin by noting that while we are tasked with determining the purpose of El maternity benefits, the actual enabling legislation, the Employment Insurance Act, says nothing explicitly on this issue. As such, to make this determination we will be required to make reasonable inferences based on other factors, including the eligibility criteria, their practical usage, and indeed a common sense understanding.

Let us consider the purpose and eligibility criteria of maternity benefits, according to the departmental website. It states, “A maximum of 15 weeks of El maternity benefits is available. The 15 weeks can start as early as eight weeks before the expected date of birth, and can end as late as 17 weeks after the actual date of birth.”

My central argument is that protecting maternal health is a function of maternity benefits under the existing legislation and usage. That is why my bill, which touches directly on this function through existing entitlements, cannot be considered to be creating a new function. The function already exists.

The fact that applicants are already permitted to take benefits during their pregnancy, up to eight weeks prior to their due date, is strong evidence that maternal health and maintaining a safe pregnancy are existing purposes of maternity benefits. The legislation may not explicitly recognize this, or any purposes of maternity benefits, but I believe the interpretation and the spirit of the law confirm this understanding.

Legal analysis of the existing provisions is valuable, but should be complemented by a practical understanding of the benefits. In other words, it is not just my opinion that maternity benefits can be interpreted as having a maternal health function, but this is exactly how the benefits are being used.

Melodie Ballard, a constituent from my riding, is one of the many Canadians who chose to access their maternity benefits early because their job posed a risk to their health and that of their unborn child. This is not only allowed under the current rules, but in fact, it is one of the main reasons why benefits can be taken eight weeks before the birth. All Bill C-243 does is emphasize one of the existing purposes and practical usages of maternity benefits. That is it.

To be clear, I do not mean to suggest that this is the only function of maternity benefits, or the only reason that the legislation permits pre-confinement access. Indeed, maternity benefits can be taken after the birth, and in that sense they are also intended to provide a recovery period for the mother after childbirth. The key point is that maternity benefits should not be so narrowly interpreted as to exclude the function of maternal health, given the structure of the benefits and how they are practically used.

I will now present statements as to why my argument that employment insurance, and in particular maternity benefits, do serve the purpose of supporting a healthy pregnancy. To begin, consider this statement from the director general of El who, when she appeared before the HUMA committee on May 8, 2014 said, “Maternity benefits provide income support for a 15-week period surrounding childbirth to allow recovery from physical or emotional effects of the pregnancy and childbirth.”

It is clear from this statement that maternity benefits are used to support maternal health during pregnancy. Perhaps more specifically, Mr. Speaker, you will have to answer whether maternity benefits serve the purpose of protecting the mother when her job poses a risk to her health, or to that of her unborn child.

In other words, do El maternity benefits serve a similar purpose to the preventative withdrawal program that exists in Quebec? This is a topic that has actually been discussed during debates in this House, in particular on past private members' bills, Bill C-380 and Bill C-307.

I would refer to a contribution from the member for Coast of Bays—Central—Notre Dame on May 3, 2012, “provinces outside of Quebec have been relying for numerous years on the Employment Insurance Act for compensation for pregnant and nursing women in the circumstances of a preventive withdrawal from work.”

That sort of statement makes my argument quite succinctly and coherently.

A similar explanation for how employment insurance benefits are used for the purpose of protecting the mother and unborn child were put forward in this House on October 17, 2005, by the parliamentary secretary to the Minister of Labour and Housing at the time, “women under federal jurisdiction, if they must take leave, have access to employment insurance”.

The understanding that maternity benefits are an income support during a period of preventative withdrawal was corroborated by multiple members during debate proceedings on both Bill C-307 and Bill C-380.

In addition to members of Parliament, this understanding of El has been affirmed by departmental officials as well. When asked during the HUMA committee on October 22, 2003, about whether Canada had a system of preventative withdrawal, the Director of Labour Standards and Workplace Equity responded:

Where the job has been determined to be dangerous, the employer has an obligation to attempt to reassign her to work that is not unsafe for either the unborn child or the nursing child. If it's not possible or not reasonably practicable for the employer to reassign that individual, then she is entitled to leave without pay. What would happen under those circumstances is that she would take advantage of the employment insurance program...

It is clear that the employment insurance system, in particular the eight weeks of pre-birth maternity benefits, are an integral part to supporting women who choose to leave their job due to hazardous conditions.

Even though some statements do not mention maternity benefits explicitly, it is clear that this is the main form of El that would apply in these cases.

The final point I will make is to clarify that this bill does not affect any other type of El benefits, in particular parental or sickness benefits. Parental benefits would still only be able to be taken after confinement, which is in keeping with their purpose.

One might also think that protection of the expectant mother better falls under the category of sickness benefits. In fact, this is a very common misconception of sickness benefits. The reality is that sickness benefits can only be accessed if the individual is sick, not if there is a risk to their maternal health. Unlike maternity benefits, they cannot be taken for the purpose of protecting the health of the mother and the unborn child from the risks of a hazardous work environment.

Let me be clear, eight of the 15 weeks of maternity benefits can and are frequently being used for that purpose. As this function and purpose is well-established, my bill cannot be said to be creating a new function.

To conclude, the intent of my bill is simply to emphasize an existing function of maternity benefits, maternal health, for those who need it most, women working in hazardous jobs.

There is a royal recommendation that exists for spending on maternity benefits. There is no doubt that this bill would affect the manner in which that spending is done.

The central question is, does my bill shift spending in a manner that departs from the original purpose of maternity benefits? Put another way, does protection of the women's maternal health fall outside of the purpose of maternity benefits? I submit to you that it does not.

In closing, I will draw your attention to Keyes 1997 who argued on page 20 that royal recommendation is not required for cases where the bill authorizes spending for similar functions where “Provisions imposing additional functions on publicly funded bodies if the functions are of the same nature as their existing functions or are conferred for similar purposes.”

Income Tax ActRoutine Proceedings

June 1st, 2016 / 3:15 p.m.
See context

Conservative

David Tilson Conservative Dufferin—Caledon, ON

moved for leave to introduce Bill C-280, An Act to amend the Income Tax Act (golfing expenses).

Mr. Speaker, it gives me great pleasure to introduce my bill which would make green fees deductible as a business expense. We all know the old adage that says “more business gets done on the golf course than in the boardroom”. There is more to that than meets the eye.

As most members of the House already know, the golf industry in Canada is driven by small business owners. The people who own and run the local courses and employ thousands of Canadians contribute a tremendous amount to our economy.

It is acceptable for a business to deduct a portion of the costs of a Leafs game or a steak dinner as a expense when entertaining clients. It is only fair that a round of golf should be in the same category. The U.S. and the United Kingdom tax codes allow for this deduction. It is high time we allowed it in Canada as well.

I hope other hon. members will look favourably upon the bill.

(Motions deemed adopted, bill read the first time and printed)