Bill C-32

Fall Economic Statement Implementation Act, 2022

An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022

Part 1 implements certain measures in respect of the Income Tax Act by
(a) providing that any gain on the disposition of a Canadian housing unit within a one-year period of its acquisition is treated as business income;
(b) introducing a Tax-Free First Home Savings Account;
(c) phasing out flow-through shares for oil, gas and coal activities;
(d) introducing a new 30% Critical Mineral Exploration Tax Credit for specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors;
(e) introducing the Canada Recovery Dividend under which banks and life insurers’ groups pay a temporary one-time 15% tax on taxable income above $1 billion over five years;
(f) increasing the corporate income tax rate of banks and life insurers’ groups by 1.5% on taxable income above $100 million;
(g) providing additional reporting requirements for trusts;
(h) providing rules applicable to mutual fund trusts listed on a designated stock exchange in Canada with respect to amounts that are allocated to redeeming unitholders;
(i) providing the Minister of National Revenue with the discretion to decline to issue a certificate under section 116 of the Income Tax Act in certain circumstances relating to the administration and enforcement of the Underused Housing Tax Act ;
(j) doubling the First-Time Homebuyers’ Tax Credit;
(k) expanding the eligibility criteria for the Medical Expense Tax Credit in respect of medical expenses incurred in Canada related to surrogate mothers and donors and fees paid in Canada to fertility clinics and donor banks;
(l) introducing the Multigenerational Home Renovation Tax Credit;
(m) allowing access to the small business tax rate on a phased-out basis up to taxable capital of $50 million;
(n) modifying the computation of income as a result of the adoption of a new international accounting standard for insurance contracts;
(o) introducing a new graduated disbursement quota rate for charities;
(p) providing that the general anti-avoidance rules can apply to transactions that affect tax attributes that have not yet been used to reduce taxes;
(q) strengthening the rules on avoidance of tax debts;
(r) modifying the calculation of the taxes applicable to registered investments that hold property that is not a qualified investment;
(s) modifying the tax treatment of certain interest coupon stripping arrangements that might otherwise be used to avoid tax on cross-border interest payments;
(t) clarifying the applicable rules with respect to audits by Canada Revenue Agency officials, including requiring taxpayers to give reasonable assistance and to answer all proper questions for tax purposes; and
(u) extending the capital cost allowance for clean energy and the tax rate reduction for zero-emission technology manufacturers to include air-source heat pumps.
It also makes related and consequential amendments to the Canada Deposit Insurance Corporation Act , the Excise Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act and the Income Tax Regulations .
Part 2 amends the Excise Act, 2001 and other related texts in order to implement changes to
(a) the federal excise duty frameworks for cannabis and other products by, among other things,
(i) permitting excise duty remittances for certain cannabis licensees to be made on a quarterly rather than a monthly basis, starting from the quarter that began on April 1, 2022, and
(ii) allowing the transfer of packaged, but unstamped, cannabis products between licensed cannabis producers; and
(b) the federal excise duty framework for vaping products in relation to the markings, customs storage and excise duty liability of these products.
Part 3 amends the Underused Housing Tax Act to make amendments of a technical or housekeeping nature. It also makes regulations under that Act in order to, among other things, implement an exemption for certain vacation properties.
Division 1 of Part 4 authorizes the Minister of Finance to acquire and hold on behalf of His Majesty in right of Canada non-voting shares of a wholly-owned subsidiary of the Canada Development Investment Corporation that is responsible for administering the Canada Growth Fund and to requisition the amounts for the acquisition of those shares out of the Consolidated Revenue Fund.
Division 2 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the maximum financial assistance that may be provided in respect of foreign states.
Subdivision A of Division 3 of Part 4 enacts the Framework Agreement on First Nation Land Management Act .
Subdivision B of Division 3 of Part 4 contains transitional provisions in respect of the enactment of the Framework Agreement on First Nation Land Management Act and makes consequential amendments to other Acts. It also repeals the First Nations Land Management Act .
Division 4 of Part 4 amends the Government Employees Compensation Act in order to fulfil Canada’s obligations under the Memorandum of Understanding between the Government of Canada and the Government of the United States of America concerning Cooperation on the Civil Lunar Gateway.
Division 5 of Part 4 amends the Canada Student Loans Act to eliminate the accrual of interest on guaranteed student loans beginning on April 1, 2023.
It also amends the Canada Student Financial Assistance Act to eliminate the accrual of interest on student loans beginning on April 1, 2023.
Finally, it amends the Apprentice Loans Act to eliminate the accrual of interest on apprentice loans beginning on April 1, 2023 and to clarify when the repayment of apprentice loans begins during the interest suspension period from April 1, 2021 to March 31, 2023.

Fall Economic Statement Implementation Act, 2022

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, let me tell members, my constituents are getting that money back every single day.

The carbon tax is refundable. Everybody is getting it back. Most importantly, we need that carbon tax because we need to start paying more attention to climate change.

We look at what happened this summer in the Maritimes. From coast to coast to coast there was a tremendous amount of damage. It will be years and years before it is ever corrected.

All of this is talking about climate change and the changes we need to make for our children's and grandchildren's future.

[Martin Champoux, Bloc, Drummond, QC]

Mr. Speaker, I thank my hon. colleague for her remarks and her speech.

We are going into what may well be a recession in 2023. One might have expected the government to implement slightly more aggressive measures to help Quebeckers and Canadians weather a possible recession.

First of all, we have yet to see the EI reform that was promised. At this time, six out of every 10 workers who lose their jobs are not eligible for employment insurance, so reform is urgently needed.

I also heard my colleague talk about her unconditional love and affection for seniors, and how much the government wants to support them. To the best of my knowledge, the retirement age is still officially 65, but fewer and fewer Quebeckers and Canadians can afford to retire because there is no support from this government for seniors aged 65 to 74.

The question I want to ask my colleague is this. What are people aged 65 to 74, who are seniors, supposed to do to get through the recession without help from the federal government?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I am very proud of the work the government has done since we came in in 2015. Seniors have been every bit as important as everyone else that we are trying to deal with.

We have increased funds to them through the OAS and the GIS. There has been a 10% increase in the pension, which was not an easy thing to accomplish.

We continue even in this economic statement. There is an additional $234 for seniors.

We are trying to help a variety of people through a variety of different programs. It is part of the role of the government to see where those opportunities are and where we can make sure we are lifting people up, so that they can get through, no matter what their age is.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Speaker, there is a major shortfall in this fall economic statement. Over $30 billion a year goes to overseas tax havens on behalf of the corporations that are benefiting the most from greedflation and the ultrarich. Of the $30 billion, the federal Liberal government has decided to claw back about $600 million, about 2% of the $30 billion.

Of course, as we well know, that $30 billion would be one of the top five expenditures of the federal government. It means that seniors, students, people with disabilities and families are shortchanged, in terms of the benefits and supports that they could be getting.

Why are the Liberals refusing to crack down on massive tax evasions, tax loopholes and overseas tax havens that cost Canadians over $30 billion a year?

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, one of the things I neglected to mention is with regard to the Canada workers benefit, which I think is really important for all Canadians but especially for the residents of Humber River. I wanted to make sure to mention it.

The Canada workers benefit will provide up to $1,428 for a single worker or up to $2,461 for a family this spring through the existing tax return payment. That is a significant assistance to give people, to move forward as we go forward.

I am not answering my colleague's question because it is important for me to tell Canadians and people in Humber River about the extra money they are going to get.

[Michael Kram, Conservative, Regina—Wascana, SK]

Mr. Speaker, I am pleased to speak this morning to Bill C-32, the fall economic statement implementation act. More specifically, I will be talking about a very exciting research institution that should have been mentioned in the fall economic statement but was not.

The Canadian Institute for Public Safety Research and Treatment, or CIPSRT, is headquartered in my riding, at the University of Regina. However, before I get into the details of the vitally important work that CIPSRT is doing, I would like to invite my fellow MPs to imagine themselves as witnesses to a number of tragedies that recently occurred across our country.

On November 10, 2021, a cyclist was killed after being run over by a dump truck. He was the fifth cyclist in that city to be killed that year, on top of numerous other car crashes. This happened in Montreal, in the Prime Minister's riding of Papineau.

In May of this year, following severe thunder and lightning storms, a 59-year-old man was killed when a tree fell on him. This happened right here in Ottawa, in the official opposition leader's riding of Carleton.

In 2018, a driver heading westbound on a highway lost control of her vehicle, veered into the eastbound lanes and was struck by two other vehicles. The out-of-control driver was killed, and five others were injured, including a young child. This also happened in Montreal, in the Bloc Québécois leader's riding of Beloeil—Chambly.

In May of last year, a 23-year-old man was shot dead in a violent gang attack at a shopping centre that saw two other people wounded and sent patio diners ducking for cover and using tables as shields. That happened in the NDP leader's riding of Burnaby South.

Last but not least, there were the horrifying events from the Labour Day long weekend, in which an ex-convict armed with a knife went on a stabbing spree in his hometown and a neighbouring community, leaving 10 dead and 18 wounded. I am, of course, speaking of the events at the James Smith Cree Nation and the village of Weldon in my home province of Saskatchewan.

I could go on for hours, citing tragedies in every single riding in this country, from coast to coast to coast. However, the question I would like members of the House to ask themselves is this: If they had witnessed even one of these events, which we all easily could have, how would they be affected? I bet we would all feel stressed out. Many of us would probably have nightmares. Some of us would even come away with a sort of PTSD that we would experience the next time we were driving down a highway, walking through a shopping mall, cycling past a dump truck or maybe even just walking by a tree during bad weather.

Keep in mind that I am speaking of the sorts of psychological scars that we would carry from just one single event, but our frontline public safety workers, including police, firefighters, paramedics, soldiers, border services, correctional services and many others face this type of trauma every single day, often multiple times per day. For our safety and well-being, frontline public safety workers not only face daily physical risks, but also live in a constant state of psychological siege that does not end when they punch the clock at the end of the day. It follows them home, affecting their health, sleep, relationships and more.

Several members of the House had the opportunity to meet and talk with representatives from CIPSRT at their breakfast reception here on Parliament Hill earlier this month. Dr. Nicholas Jones and Dr. Nicholas Carleton, affectionately known as “the two Dr. Nicks”, brought MPs up to speed on a number of shocking facts about the psychological fallout suffered by public safety workers. For example, studies have shown that fully one-quarter of all paramedics have had suicidal thoughts over the course of their careers, and the profession has a rate of suicide attempts roughly double that of the general population.

The two Dr. Nicks also told me that a significant part of the problem is the mental health culture within many of these professions. For police, firefighters, soldiers and others, there is often a tough, “suck it up” attitude about mental health that in the long run only serves to make the problem worse.

It can be difficult to break through this frame of mind. After all, the people in these professions are trained to be tough, to be authority figures. They are trained to be the people who remain calm and in control when others are panicking, and so one can easily imagine how very difficult it must be for these people in these professions to let their guard down, to allow themselves to be vulnerable and to ask for help when usually they are the ones providing help to others.

When speaking about social problems, advocates often like to use the word “epidemic” to describe them. This word most certainly applies to the mental health challenges faced by public safety workers, yet despite the growing extent of the problem, relatively few public resources have been invested. This is where CIPSRT comes in.

Founded in 2018, the institute was established as a knowledge hub, working in conjunction with the Canadian Institutes of Health Research to investigate the treatment of post-traumatic stress injuries for the country's public safety workers. While CIPSRT may consist of a multidisciplinary research team, it does not merely conduct studies and gather reports. Instead, it is actively engaged in developing practical, real-world tools to assist public safety workers.

It is unfortunate that one of the rules of the House is that we are not allowed to use props, because I would love to demonstrate one of the very innovative solutions that CIPSRT has developed. One of these innovations, which the two Dr. Nicks demonstrated to me at the University of Regina earlier this year, is a daily stress monitoring device and app.

Essentially, the public safety worker uses a stress monitoring device once per day. This device collects data about the person's blood pressure, heart rate and other physiological signs. The device is sophisticated enough to distinguish between physiological changes brought on by stress and those brought on by, say, going for your morning jog. All of this data is then fed into an app that the public safety worker and his or her therapist can monitor over time. If those stress levels are starting to go off the charts, or off the app in this case, then those public safety workers can ask themselves what was happening at those times that triggered that stress. Likewise, the therapist can start to work on intervention strategies to bring down those stress levels before they get to dangerous levels.

CIPSRT has accomplished all of this and more through the frugal use of their initial funding of $5 million plus a few project-specific grants along the way. Sadly, all of the good work that CIPSRT has done, and all of the good work that it could potentially do is in jeopardy. Its initial five-year funding commitment from the federal government expires on March 31 next year, just four short months from now. No federal funding has been committed after that date. Furthermore, due to the ethical code of conduct to which researchers are bound, they cannot begin research with new subjects unless there is enough time left for the subjects to also finish the program. That means CIPSRT will not accept any new public safety workers into their program after Christmas.

I was particularly disappointed that the finance minister did not mention this research institution in her 10-minute speech to the House on November 3. There was no mention of CIPSRT in the 96-page fall economic statement, or in the 172-page implementation act that we are debating this morning.

I would like to urge both the government and every member of the House to take a closer look at the Canadian Institute for Public Safety Research and Treatment and the solutions it can provide to this country's public safety workers and their mental health challenges.

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

Mr. Speaker, a couple of things came to mind when the member made his presentation.

One is the fact that never before have we seen a national government play such a prominent role in terms of mental health. We have allocated hundreds of millions of dollars toward the issue of mental health. We have reinforced Veterans Affairs with financial support for those individuals who need to have support in that whole area.

When it comes to research, as a government, I would challenge the member to find another national government in the last 20 to 30 years that has invested more money in research in science. I suspect that there are going to be many universities and other post-secondary facilities out there.

Is it the position of the Conservative Party that the Government of Canada should continue to look at post-secondary facilities and financially support research projects, even if it means having to use tax dollars?

[Michael Kram, Conservative, Regina—Wascana, SK]

Mr. Speaker, the Conservative Party is in favour of a one-for-one policy when it comes to government spending. For every new dollar of government spending we should find one dollar of savings somewhere else. I do not think that is very difficult to do when one considers that the Canada Infrastructure Bank cost $30 billion but has not delivered a single project, and when one looks at the ArriveCAN app that cost $54 million.

I am sure, with a little effort, we could find savings elsewhere in government to fund a very worthwhile program like CIPSRT.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Speaker, discussions about investing in mental health, especially for first responders, always resonate with me. There are reasons why mental health deteriorates. It may be a lack of support, for example. Over the past 30 years, there has been a lack of support from the federal government. It is time to admit it and do something about it.

Health transfers have been inadequate and, as a result, governments across Canada have had to cut spending to ensure the sustainability of services, which has had an impact on first responders.

I would like to hear my colleague's comments on the importance of health transfers and the fact that the federal government should not interfere in the jurisdictions of the provinces and Quebec and should look after its own affairs instead.

[Michael Kram, Conservative, Regina—Wascana, SK]

Mr. Speaker, my view is that it is the role of provincial governments to deliver and implement a lot of these programs. The federal government's focus should be on research into new treatments and technologies that can be used across the country and across the world. That is where I think CIPSRT is in a unique position, in that it does not just talk about the problem, but it has actually developed solutions. It is asking for a rather modest funding allocation of several million dollars to scale up its research and make it available across the country to benefit first responders and everyone.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Speaker, the member focused a lot on rising crime. I was in the House, as were many members, when the former Harper government destroyed the network of national crime prevention centres. That made no sense at all because, as we know, one dollar invested in crime prevention saves six dollars in policing costs, court costs and prison costs, yet the Harper government, reprehensibly, absolutely destroyed the network of national crime prevention centres that did such good work in preventing crime across the country.

The Conservatives would be right to criticize the Liberals for not re-establishing those crime prevention centres, but the reality is that Conservatives wear the fact that they destroyed the bulwark against crime in this country.

Why did the former Harper government and the Conservatives destroy the national crime prevention network that did such great work in preventing crime in our communities?

[Michael Kram, Conservative, Regina—Wascana, SK]

Mr. Speaker, the member's question is quite a bit beyond the scope of my intervention. There will always be violent crime, sadly enough, and there will always be earthquakes and car crashes. I hope there will always be first responders to help people when they are suffering some sort of tragedy or crisis. The mental health challenges will always be there as long as we have first responders doing their jobs. It would be nice if we could provide some more support for our first responders, as I outlined in my intervention.

[Gary Anandasangaree, Liberal, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada]

Mr. Speaker, it is an honour to speak in support of the fall economic statement. Let me begin by acknowledging we are all gathered here on the traditional unceded lands of the Algonquin people.

I want to acknowledge that yesterday the mayor of the city of Toronto appointed my municipal colleague, Dr. Jennifer McKelvie, as the deputy mayor for the city of Toronto. I want to congratulate her on this enormous responsibility she has. I have every confidence she will serve the people of Scarborough—Rouge Park as well as the people of the city of Toronto exceptionally. I look forward to working with her and the mayor as he starts his third term.

There are a number of things in the fall economic statement, but the most glaring issue I see is the current economic situation faced by Canadians. Inflation, although it has tapered down a bit from its high, is at 6.9% and has been persistent for the last couple of months. We had our constituency week last week, and many of us in the House were able to speak to families, individuals and students about some of the challenges they have. Many spoke to me about the increasing cost of living, the increasing cost of housing, transportation and gasoline. They talked about some of their anxieties, especially students who attend the U of T Scarborough in my riding, as well as Centennial College.

Canadians have been struggling a great deal over the last several months, but I want to assure them that, as a government, we are here to support them. We are here to ensure affordability remains front and centre in the work we do and to make sure we are there for them every step of the way. In fact, this is the reason we brought forward several months ago, and the cheques went out two weeks ago, the doubling of the GST credit. This has a significant impact on millions of Canadians who need the support.

We have also adopted dental care for young people with family incomes of less than $90,000. There is no question that it is a critical component of what is required for the health and well-being of Canada's youth. Unfortunately, many families simply are not able to afford it, and this is a very important step in ensuring young people have dental care.

We have been building supports for Canadians since 2015. The Canada child benefit, for example, supports young people and families across Canada. In my riding alone, it has had a significant impact on addressing the issue of poverty among our young people, and that is something we can all take pride in. As a government, we work very hard and diligently to make sure we target supports to those who need them and not give cheques to millionaires and those who really do not need them. It is a means-tested approach, one that is very smart and has had a significant impact on addressing the issue of poverty.

The adoption of $10-a-day child care in Ontario is a game-changer for many families. Look at how we are supporting, for example, someone with two kids in child care. We are talking about thousands of dollars in savings on an annual basis. It is something that is going to change our workforce. More women will enter the workforce, and they will be supported by the government. With the introduction of $10-a-day child care in Ontario, this year alone child care expenses will be reduced by 50%, with a goal of it being reduced to $10 a day. That too is a very important aspect of addressing the issue of affordability.

The national housing strategy is another perfect example of how we are addressing a number of things, including chronic homelessness, the need for transitional housing as well as affordable housing within the market space. We know there are many different players.

In Scarborough—Rouge Park, for example, we have a number of initiatives, one that we just announced several months ago with Fred Victor. We have modular housing being built, which will be available, with the proper supports, for those who need it. In fact, that is being replicated across not just the city of Toronto, but across Canada. It is also supplemented. We have a project called 250 Brenyon Way, which the national housing strategy and the CMHC are intricately involved in providing those supports.

Given the limited time I have, I would like to speak to a key aspect of the fall economic statement, namely the elimination of interest on student loans, the Canada student loan program as well as the Canada apprenticeship loan program.

I have always said, and I have repeated it many times in the House, that education is the ultimate equalizer in society. If we look at it, whether through history, youth, people in the House, or my personal lived experience, education has certainly given me the tools to do the things I do. Whether as a lawyer, someone who was previously in business or working with youth, it has given me those skills.

We know that the youth of today need that formal education. Whether they go to college, university or enrol in apprenticeship or trade programs, they need that education to compete in this world. We have seen some phenomenal successes whether in AI or health care. We have seen an enormous amount of young people rising to the challenge with respect to COVID–19 or developing state-of-the-art technologies.

I cannot tell members the number of times I have met people, whether during Christmastime or the summer, who have gone from Canada to the Silicon Valley or to other countries, such as Germany. Very recently I spoke with someone who went to Finland to work in a high-tech firm. However, oftentimes young people are very apprehensive of going forward with such a huge debt, if they or their families do not have the means to support it. We know that programs such as law and medicine, in particular, have a very high cost of tuition, with the assumption that once students finish the program they have the ability to earn a higher income.

The challenge, and this is very true for many racialized first generation or indigenous peoples, is that the burden of the high level of debt they would have to incur to pursue a specialized program, or any program, can be a deterrent to them being able to pursue post-secondary education or training. Therefore, the elimination of the federal interest portion on the student loan program is a game-changer.

I was able to drop by the University of Toronto's Scarborough campus, as well as Centennial College, to speak with some of the students. They are very happy about this elimination. I have also spoken with some people who have already graduated and are working. They also feel this is a very important measure that will allow them to be more secure and save some money over the next few months. I am really pleased to support that.

With that, I look forward to questions and comments from my friends.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, the Parliamentary Budget Officer identified $14.2 billion of new spending in the fall economic statement that had no details attached to it. Effectively, it is a blank cheque for $14.2 billion that the government is asking parliamentarians to accept.

Why is that member supporting more inflationary spending when we know that Canadians are hurting? The right thing to do would be to not give a blank cheque for $14.2 billion to the federal government?

[Gary Anandasangaree, Liberal, Scarborough—Rouge Park, ON]

Mr. Speaker, I have spoken to a number of people who are well versed in economics, more so than myself, and I can assure members that the measures we have put in place are very measured. They would allow Canadians to have support without contributing to inflation.

I am very confident, as is the Minister of Finance, that this fall economic statement is prudent and is one that reflects the current needs as well as the current realities of inflation.