Bill C-239 (Historical)

An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces

This bill is from the 44th Parliament, 1st session, which ended in January 2025.

Sponsor

Alain Therrien Bloc

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

Status

Defeated, as of April 19, 2023
(This bill did not become law.)

Summary

This is from the published bill.

This enactment amends An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces to provide that the Minister of Finance may enter into an agreement with the government of a province under which the government of the province will collect the federal personal and corporation income taxes on behalf of the Government of Canada. It also requires that the Minister of Finance undertake discussions with the Government of Quebec in order to enter into such an agreement.

Similar bills

C-224 (43rd Parliament, 2nd session) An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces

C-224 (43rd Parliament, 1st session) An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces

C-442 (42nd Parliament, 1st session) An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces

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-239s:

C-239 (2025) An Act to amend the Canada Health Act (accountability)

C-239 (2020) National Cycling Strategy Act

C-239 (2016) Fairness in Charitable Gifts Act

Votes

April 19, 2023 Failed 2nd reading of Bill C-239, An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces

Debate Summary

This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-239 proposes amending existing legislation to allow Quebec, or any other province, to collect federal personal and corporate income tax on behalf of the Government of Canada. This would result in a single tax return for Quebec residents, instead of the current system where they file both a federal and provincial return. Proponents argue this would reduce paperwork, save time and money for taxpayers, and give Quebec more control over its tax system, while opponents express concerns about potential job losses, increased costs, impacts on international tax agreements, and the fairness and efficiency of such a system.

Bloc

Supports single tax return: The Bloc Québécois is proposing a single tax return for Quebeckers, where Quebec would be the sole tax collector, remitting funds to the federal government based on their respective tax policies. This approach aims to streamline tax collection and reduce administrative burdens.
Save time and money: The proposal is projected to save Quebeckers time and approximately $425 million annually, reducing paperwork for individuals and entrepreneurs. Economist François Vaillancourt estimates that filing two tax returns increases the time required by 10% for Quebeckers.
Quebec's autonomy: A key motivation for the Bloc is to enhance Quebec's political autonomy and demonstrate its capacity for self-governance. There is concern that the federal government's refusal to allow a single tax return stems from a fear of recognizing Quebec's ability to manage itself as a nation.
Address labour shortages: The Bloc suggests that any jobs lost due to consolidating tax collection can be absorbed within the public service. Government workers could transition to other departments, like the Canada Revenue Agency (CRA), which is currently experiencing a labour shortage.

Conservative

Supports single tax return: The Conservative party supports Bill C-239, advocating for a single tax return in Quebec to reduce the paperwork burden on Quebeckers and save them time and money. They highlight previous motions and votes in favor of this measure, emphasizing its alignment with their values of simplifying lives and increasing quality of life for Quebeckers.
Respect for provincial jurisdiction: The Conservatives claim to be the only party that truly respects provincial and territorial jurisdictions. They support the single tax return, because it fulfills a request from the Quebec National Assembly, and that respecting the will of the National Assembly improves the quality of life of Quebeckers and the Canadian people generally.
Criticism of Liberal government: The Conservative members criticize the Liberal government for not prioritizing measures beneficial to Quebec and for alleged incompetence and cronyism. They accuse the Liberals of wasting money on contracts instead of supporting hard-working Canadians and of disrespecting the will of the House by not implementing private members' bills that have majority support.
Job security: Conservative members raised concerns about the job security of CRA workers, and noted that any transition to a single income tax should be made with good will and with due consideration to federal public servants. They note a broader concern about contracting out work, rather than trusting the public service.

NDP

Single tax return problematic: The NDP supports the principle of a single tax return for Quebeckers to reduce paperwork but insists it must not come at a human cost, such as job losses or negative impacts on families and regions.
Minimal impact for taxpayers: Given the increasing use of online tax software, the NDP argues that a single tax return will only affect a small percentage of Quebeckers (10-12%) who still file paper returns, diminishing the purported benefits of the measure.
Job losses are unacceptable: The NDP is concerned about the potential loss of 3,000 jobs in Quebec's regions due to the implementation of a single tax return, citing testimony from committee and union representatives; they feel that workers deserve respect and job security.

Liberal

Opposes bill C-239: The Liberal party opposes the bill, arguing that it has major flaws that were previously identified and led to its rejection in a prior parliamentary session. The bill would authorize Quebec or any other province to collect federal income tax on behalf of the Government of Canada, but the Liberals believe the bill would negatively impact effectiveness, equity, efficiency, and value for taxpayers and governments.
Job losses in Quebec: The party is concerned about potential job losses for Canada Revenue Agency (CRA) employees in Quebec. Transferring federal tax administration to Quebec could jeopardize approximately 6,000 jobs in 14 CRA offices in Quebec and also affect employees in other provinces.
Increased costs: The Liberals believe the bill would likely result in higher costs for taxpayers, as the existing tax collection agreements produce efficiency gains and cost savings, while transferring administration would eliminate economies of scale, increase expenses, and require significant investments in infrastructure.
Impacts to international agreements: The bill raises concerns about Canada's ability to meet obligations under international tax conventions and agreements, potentially impacting the country's capacity to fight tax evasion and avoidance.

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Federal-Provincial Fiscal Arrangements ActPrivate Members' Business

April 18th, 2023 / 6:40 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

Pursuant to order made on Thursday, June 23, 2022, the recorded division stands deferred until Wednesday, April 19, at the expiry of the time provided for Oral Questions.

The House resumed from April 18 consideration of the motion that Bill C-239, An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces, be read the second time and referred to a committee.

Federal-Provincial Fiscal Arrangements ActPrivate Members' Business

April 19th, 2023 / 3:35 p.m.

The Speaker Anthony Rota

Pursuant to order made on Thursday, June 23, 2022, the House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-239, under Private Members' Business.

(The House division on the motion, which was negatived on the following division:)

Vote #297

Federal-Provincial Fiscal Arrangements ActPrivate Members' Business

April 19th, 2023 / 3:45 p.m.

The Speaker Anthony Rota

I declare the motion defeated.

I wish to inform the House that, because of the deferred recorded divisions, Government Orders will be extended by 25 minutes.