Budget Implementation Act, 2017, No. 2

A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

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

Part 1 implements certain income tax measures proposed in the March 22, 2017 budget by

(a) removing the classification of the costs of drilling a discovery well as “Canadian exploration expenses”;

(b) eliminating the ability for small oil and gas companies to reclassify up to $1 million of “Canadian development expenses” as “Canadian exploration expenses”;

(c) revising the anti-avoidance rules for registered education savings plans and registered disability savings plans;

(d) eliminating the use of billed-basis accounting by designated professionals;

(e) providing enhanced tax treatment for eligible geothermal energy equipment;

(f) extending the base erosion rules to foreign branches of Canadian insurers;

(g) clarifying who has factual control of a corporation for income tax purposes;

(h) introducing an election that would allow taxpayers to mark to market their eligible derivatives;

(i) introducing a specific anti-avoidance rule that targets straddle transactions;

(j) allowing tax-deferred mergers of switch corporations into multiple mutual fund trusts and allowing tax-deferred mergers of segregated funds; and

(k) enhancing the protection of ecologically sensitive land donated to conservation charities and broadening the types of donations permitted.

It also implements other income tax measures by

(a) closing loopholes surrounding the capital gains exemption on the sale of a principal residence;

(b) providing additional authority for certain tax purposes to nurse practitioners;

(c) ensuring that qualifying farmers and fishers selling to agricultural and fisheries cooperatives are eligible for the small business deduction;

(d) extending the types of reverse takeover transactions to which the corporate acquisition of control rules apply;

(e) improving the consistency of rules applicable for expenditures in respect of scientific research and experimental development;

(f) ensuring that the taxable income of federal credit unions is allocated among provinces and territories using the same allocation formula as applicable to the taxable income of banks;

(g) ensuring the appropriate application of Canada’s international tax rules; and

(h) improving the accuracy and consistency of the income tax legislation and regulations.

Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures confirmed in the March 22, 2017 budget by

(a) introducing clarifications and technical improvements to the GST/HST rules applicable to certain pension plans and financial institutions;

(b) revising the GST/HST rules applicable to pension plans so that they apply to pension plans that use master trusts or master corporations;

(c) revising and modernizing the GST/HST drop shipment rules to enhance the effectiveness of these rules and introduce technical improvements;

(d) clarifying the application of the GST/HST to supplies of municipal transit services to accommodate the modern ways in which those services are provided and paid for; and

(e) introducing housekeeping amendments to improve the accuracy and consistency of the GST/HST legislation.

It also implements a GST/HST measure announced on September 8, 2017 by revising the timing requirements for GST/HST rebate applications by public service bodies.

Part 3 amends the Excise Act to ensure that beer made from concentrate on the premises where it is consumed is taxed in a manner that is consistent with other beer products.

Part 4 amends the Federal-Provincial Fiscal Arrangements Act to allow the Minister of Finance on behalf of the Government of Canada, with the approval of the Governor in Council, to enter into coordinated cannabis taxation agreements with provincial governments. It also amends that Act to make related amendments.

Part 5 enacts and amends several Acts in order to implement various measures.

Division 1 of Part 5 amends the Bretton Woods and Related Agreements Act to update and clarify certain powers of the Minister of Finance in relation to the Bretton Woods institutions.

Division 2 of Part 5 enacts the Asian Infrastructure Investment Bank Agreement Act which provides the required authority for Canada to become a member of the Asian Infrastructure Investment Bank.

Division 3 of Part 5 provides for the transfer from the Minister of Finance to the Minister of Foreign Affairs of the responsibility for three international development financing agreements entered into between Her Majesty in Right of Canada and the International Finance Corporation.

Division 4 of Part 5 amends the Canada Deposit Insurance Corporation Act to clarify the treatment of, and protections for, eligible financial contracts in a bank resolution process. It also makes consequential amendments to the Payment Clearing and Settlement Act.

Division 5 of Part 5 amends the Bank of Canada Act to specify that the Bank of Canada may make loans or advances to members of the Canadian Payments Association that are secured by real property or immovables situated in Canada and to allow such loans and advances to be secured by way of an assignment or transfer of a right, title or interest in real property or immovables situated in Canada. It also amends the Canada Deposit Insurance Corporation Act to specify that the Bank of Canada and the Canada Deposit Insurance Corporation are exempt from stays even where obligations are secured by real property or immovables.

Division 6 of Part 5 amends the Payment Clearing and Settlement Act in order to expand and enhance the oversight powers of the Bank of Canada by further strengthening the Bank’s ability to identify and respond to risks to financial market infrastructures in a proactive and timely manner.

Division 7 of Part 5 amends the Northern Pipeline Act to permit the Northern Pipeline Agency to annually recover from any company with a certificate of public convenience and necessity issued under that Act an amount equal to the costs incurred by that Agency with respect to that company.

Division 8 of Part 5 amends the Canada Labour Code in order to, among other things,

(a) provide employees with a right to request flexible work arrangements from their employers;

(b) provide employees with a family responsibility leave for a maximum of three days, a leave for victims of family violence for a maximum of ten days and a leave for traditional Aboriginal practices for a maximum of five days; and

(c) modify certain provisions related to work schedules, overtime, annual vacation, general holidays and bereavement leave, in order to provide greater flexibility in work arrangements.

Division 9 of Part 5 amends the Economic Action Plan 2015 Act, No. 1 to repeal the paragraph 167(1.‍2)‍(b) of the Canada Labour Code that it enacts, and to amend the related regulation-making provisions accordingly.

Division 10 of Part 5 approves and implements the Canadian Free Trade Agreement entered into by the Government of Canada and the governments of each province and territory to reduce or eliminate barriers to the free movement of persons, goods, services and investments. It also makes related amendments to the Energy Efficiency Act in order to facilitate, with respect to energy-using products or classes of energy-using products, the harmonization of requirements set out in regulations with those of a jurisdiction. Finally, it makes consequential amendments to the Financial Administration Act, the Department of Public Works and Government Services Act and the Procurement Ombudsman Regulations and it repeals the Timber Marking Act and the Agreement on Internal Trade Implementation Act.

Division 11 of Part 5 amends the Judges Act

(a) to allow for the payment of annuities, in certain circumstances, to judges and their survivors and children, other than by way of grant of the Governor in Council;

(b) to authorize the payment of salaries to the new Associate Chief Justice of the Court of Queen’s Bench of Alberta; and

(c) to change the title of “senior judge” to “chief justice” for the superior trial courts of the territories.

It also makes consequential amendments to other Acts.

Division 12 of Part 5 amends the Business Development Bank of Canada Act to increase the maximum amount of the paid-in capital of the Business Development Bank of Canada.

Division 13 of Part 5 amends the Financial Administration Act to authorize, in an increased number of cases, the entering into of contracts or other arrangements that provide for a payment if there is a sufficient balance to discharge any debt that will be due under them during the fiscal year in which they are entered into.

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.

Votes

Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Dec. 4, 2017 Passed 3rd reading and adoption of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Passed Concurrence at report stage of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Failed Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (report stage amendment)
Nov. 28, 2017 Passed Tme allocation for Bill ,
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures
Nov. 8, 2017 Passed 2nd reading of Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:30 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, I will continue to remind the House that we have had plenty of time to debate this measure. We have had four days to examine these measures in the House. We have heard from 23 members from the Conservative Party and 10 NDP members.

We think it is important to examine what we want to do for Canadians, which is to continue with our policy to improve Canada's economic conditions. Our economy is currently in good shape, but we know that there is always more that can be done. We want to continue improving the lives of the middle class and Canadian families.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:35 a.m.
See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, I rise because I am disappointed that we are once again seeing time allocation. This is a very large bill and much here that I would like to study more. As the Minister of Finance will know, I voted for the bill going to committee. I think there is much in here that is really quite encouraging and positive. However, in the debates at committee, it was drawn to my attention by the member for Carleton that the Asian Infrastructure Investment Bank could indeed fund potential infrastructure investments that go against our Paris accord commitments.

Could the Minister of Finance assure this House, as the bill is rushed through, that Canada will apply a climate lens to the funds we provide to the Asian Infrastructure Investment Bank?

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:35 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, I first want to acknowledge the member opposite, who did not vote to shut down debate yesterday like the Conservative and New Democrat members did. What I would say to her is that we are of course very pleased to be making investments in the Asian Infrastructure Investment Bank. What we do by making investments there is get a seat at the table. As she knows, we have a significant goal of trying to make sure that our efforts to improve the changing climate around the world are considered in everything we do. With that seat at the table, we will certainly be talking about our government's initiatives to improve our environmental practices, and be a voice for encouraging that activity in other parts of the world as well.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:35 a.m.
See context

Conservative

John Brassard Conservative Barrie—Innisfil, ON

Madam Speaker, what we are witnessing today is an absolutely pathetic display of contempt for this Parliament. This is a government that ran on the fact that the voices of its members would be heard, yet here they are again shutting down debate. However, we are seeing bully politics going on here as well.

I had a conversation with some of my colleagues this morning, and we talked about how this day would go. I said to them that as soon as the sun comes up, the finance minister's answer to any questions similar to yesterday's would be, “Let's take it outside.” Well, it was taken outside.

More importantly, the finance minister is responsible for answering to Canadians. He was asked a simple question about when he sold his shares or who sold those shares, and he refused to answer.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:35 a.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, I rise on a point of order.

Even the member across the way acknowledged that he was starting to get off topic. I just want to remind my colleague that we are debating the budget implementation bill, along with the issue of time allocation. The member was starting to deviate, and I want to bring him back to those topics.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:35 a.m.
See context

Conservative

John Brassard Conservative Barrie—Innisfil, ON

The disruptions, Madam Speaker, are designed to thwart the voices of members in the House.

The relevance to Bill C-63 is this. The minister has shown a propensity to not be honest with Canadians and to not be honest with the House by not answering questions that are specific to him. How can we trust the minister with respect to the budget implementation bill, Bill C-63, if he will not answer those simple questions? How can we trust him when he suggests that he is not benefiting from this if he is not answering those questions? That is the relevance.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:35 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, I will continue to be absolutely transparent with the Ethics Commissioner. That is the way we work in the House.

No matter how many times members opposite talk about their superimposed approach on the approach that has been used in the House for decades, for ministers today and for ministers of yesterday, we will not accede to their fabrication of a process that actually does not exist.

The member for Barrie—Innisfil yesterday moved a motion to shut down this debate. What we are talking about today is moving forward on Bill C-63. We are moving forward, because we have had debate on this over the course of four days. More than 70 members have spoken. We are moving forward with a plan that will continue to improve the lives of Canadians. We know how important it is to keep on this track, because we are seeing real impacts now after two years of hard work.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:40 a.m.
See context

Liberal

Linda Lapointe Liberal Rivière-des-Mille-Îles, QC

Madam Speaker, I have a question for the Minister of Finance.

As you know, my riding is located in the suburbs north of Montreal, where the REM, or electric rail network, is being built. I wonder if we could have an update on the infrastructure bank and how it might support the REM project in Montreal.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:40 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, it is very important to understand how our plan is working for Canadians. Our current economic situation is an important example and that is thanks to our policies. One very important policy is the Canada infrastructure bank. This bank gives us the opportunity to find global investors for our infrastructure fund and Canada's pension funds. That is exactly what we will have the opportunity to do in Montreal and the surrounding areas, in order to improve public transit. It is an investment in infrastructure that will make a big difference for people living in Montreal or near Montreal. It is very important. Once the bank is up and running I hope that we will have the opportunity to invest with institutional investors to improve conditions for people living near Montreal.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:40 a.m.
See context

NDP

Robert Aubin NDP Trois-Rivières, QC

Madam Speaker, I must say that I am confused. We are currently debating a time allocation motion on the budget, and yet I am hearing my Liberal colleagues and the Minister of Finance discussing the budget even though they must not want to talk about it, given that they moved a time allocation motion.

Does the Minister of Finance want to talk about the budget or not?

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:40 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, we have had plenty of time to talk about our budget. Now I believe it is time we thought about how we might speed up the process to finally implement it. We want to continue with our plan to improve Canada's economy. Things are already going very well, but there is still work to be done. This bill is an important part of our plan to improve our economy. That is why we are here today.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:40 a.m.
See context

Conservative

Tom Lukiwski Conservative Moose Jaw—Lake Centre—Lanigan, SK

Madam Speaker, I would first like to address my comments to my colleague and friend, the parliamentary secretary to the government house leader, who has made continuous interruptions and interventions during this debate, citing relevancy.

I point out to my friend, and to all members in this place, that we are talking about the budget implementation bill, and as the finance minister, he is the architect of that bill. Any budget-related matters are relevant to this discussion and debate.

The credibility of not only the government but this minister is at stake here. His failure to answer a basic and very simple question about the timing of the sale of 10 million Morneau Shepell shares affects not only his credibility but that of his government as well.

For the life of me, I cannot understand why the Minister of Finance, arguably the second-most important member of this government, refuses to answer a legitimate and very simple question. This question is about the timing of a sale of shares that could have potentially benefited the Minister of Finance directly. He refuses to answer even the most basic question about that potential conflict of interest. We are simply asking why he does not answer the question.

Did he have any knowledge about the sale of Morneau Shepell shares one week prior to the introduction of the bill that he himself introduced on this floor?

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:45 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, as I have said in this House, it is important that we work together with the Ethics Commissioner to make sure that we do things exactly as prescribed, which is exactly what I have done.

The fabrication of processes that do not exist is completely unnecessary. What we are talking about today is how we can move forward on Bill C-63, making a real difference for Canadians. I fully understand why the member opposite does not want to talk about that. I fully understand that he is not interested in talking about how constituents of his and people across this country are doing better because of our policies. We understand that.

We are going to continue to move forward to make a real difference for Canadians, and we are not going to be taken off our game by fabrications.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:45 a.m.
See context

NDP

Anne Minh-Thu Quach NDP Salaberry—Suroît, QC

Madam Speaker, I find it appalling that a time allocation is being imposed on us for the 26th time, especially since this is a mammoth 329-page bill that amends about 20 acts.

In his own budget bill, the Minister of Finance proposes no measures whatsoever against tax avoidance. I can understand why, given that he himself is involved in a tax avoidance mess.

Why does he want to hasten the process when this is such a major bill? With the holidays around the corner, it is time we gave Canadians the gift of bringing back home all the tax that has been dodged and using it to provide public services.

Bill C-63--Time Allocation MotionBudget Implementation Act, 2017, No. 2Government Orders

November 28th, 2017 / 10:45 a.m.
See context

Liberal

Bill Morneau Liberal Toronto Centre, ON

Madam Speaker, we want to continue to move forward with our plan for the country. That is the explanation for today's situation. Moving forward with our plan is very important.

It is clear that our plan is working, because our economy is doing very well. Many more people now have jobs, which is important. Thanks to our policies, we have a very high rate of economic growth. We are going to continue implementing our plan. That is an important part of our plan.