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.

The Economy

[Randy Boissonnault, Liberal, Minister of Tourism and Associate Minister of Finance]

Mr. Speaker, we greatly respect the efforts that working men and women are making to build a prosperous Canada. We know that Canadians are going through a difficult time during this global inflationary cycle. That is why, here in Canada, the Bank of Canada is independent. Its role is to reduce inflation to a 2% target rate. As the government, we take action to put money in the pockets of Canadians who need it, when they need it.

That is why it is essential that every member of the House vote in favour of supports for Canadians and help us by voting for Bill C‑32.

[Randy Boissonnault, Liberal, Minister of Tourism and Associate Minister of Finance]

Mr. Speaker, as the hon. leader of the New Democratic Party knows, the Bank of Canada is an independent institution that has been tasked, since December of last year, to get inflation back down to 2%.

The bank is doing its job. We are doing our job, which is making sure that we have the fiscal firepower to face what is to come, investing in Canadians and supporting the Canadians who need it the most. That is why we are helping Canadians to buy a new home, advancing the payments for workers' benefits and making sure that student loan interest gets removed forever.

This is the right thing to do. It is the responsible thing to do. It is why we hope that all parties vote with us on Bill C-32 today.

[Randy Boissonnault, Liberal, Minister of Tourism and Associate Minister of Finance]

Mr. Speaker, the member opposite knows very well that the Bank of Canada is an independent institution.

It is true that this is a difficult time for Canadians. It is not true that the investments that we made in Canadians have caused inflation. One need only look at the report of the former governor of the Bank of Canada, Stephen Poloz, which indicates that our investments prevented a period of deflation.

Within the hour, the Leader of the Opposition will have the opportunity to help Canadians by supporting Bill C-32 to implement the support measures set out in the fall economic statement.

[Randy Boissonnault, Liberal, Minister of Tourism and Associate Minister of Finance]

Mr. Speaker, I would like to thank my friend and hon. colleague from Vancouver Granville for his hard work on the file and his dedication to his residents.

We are always here to support Canadians, and the measures we have in place put more money in the pockets of Canadians. In the fall economic statement, we propose to eliminate student loan interest, to make housing more affordable and to increase the Canada workers benefit. The Conservatives can do the right thing and see their hearts grow not one, not two, but three sizes, and vote for Bill C-32 and to support Canadians.

Taxation

[Randy Boissonnault, Liberal, Minister of Tourism and Associate Minister of Finance]

Mr. Speaker, our approach is based on compassion, responsibility and fiscal prudence.

If we look at the facts, millions of mothers who received CERB did not create inflation, and neither did the thousands of businesses that took wage subsidies.

If the Conservatives truly, from the bottom of their hearts, want to help Canadians get through these difficult times, they can do the right thing and vote for Bill C‑32, which will benefit Canadians.

Bill C-32—Time Allocation Motion

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, we are in the midst of consultations on budget 2023. I know that my colleague who is responsible for EI is currently looking at a new version, at modernizing EI. I invite my colleague to submit his proposals to the minister responsible and to me because it is time to modernize our EI system. For today, we need to vote on Bill C-32.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, I would like to point out that I am very uneasy about the gag order that is being imposed.

It is a little late to propose amendments to Bill C‑32, but a budget will be tabled soon enough. Can my colleague commit to making sure that there is real EI reform? I think it is time. We must use the months ahead to take appropriate action to rebuild our social safety net. Six out of 10 people do not have access to EI, and that includes people who pay into it.

Can my colleague commit to that?

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, what is important in Bill C-32, the fall economic statement, is the fact that we have put money down on our deficit to have the lowest deficit in the G7. We are investing billions of dollars to make sure that we have a clean tech sector, a hydrogen sector and good labour provisions to make sure there are good-paying jobs.

We are talking about making sure that people can buy their first homes, eliminating the interest on student loans and apprentice debts, and making sure that small businesses in the member's riding, in my riding and ridings across this country can grow and have their taxes reduced, so we do not see them pack up and go to another country.

This is an important piece of legislation. The Conservatives are objecting to the short title of the bill. That is a very clear signal that it is time for us to move to the vote.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, I would like to begin by telling my colleague from Shefford just how deeply I was touched by her observations this morning. I thank her for her comments.

Regarding Bill C‑32, we need to focus on democracy and meeting Canadians' needs when it comes to building the economy, putting Canada in a very strong fiscal position and providing support to Canadians who need it.

We have already had 27 hours of debate and 140 speeches on Bill C‑32. We will be spending more time on it and hearing more speeches about it today and throughout the week. Implementing the support measures in this bill is essential to the economy, to our fiscal position and to Canadians.

With that, we are here because we are ready to vote.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, I respect the NDP members and thank them for supporting this bill.

My colleague is absolutely right. This bill will help growing companies lower their tax bill. We will eliminate interest on student and apprentice loans. We will also help Canadians buy their first home. We are going to make significant investments in the economy akin to those in the U.S. Inflation Reduction Act.

It is time to take action. The game plan is consistent across the continent. That is why we need to take action and vote in favour of Bill C‑32.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Madam Speaker, I am pleased to rise in the House to remind everyone that, in this minority government, the NDP is acting responsibly and forcing the Liberal government to do things that matter to people, such as introducing dental care and increasing the GST credit.

Bill C‑32 is not perfect, but it contains concrete measures that will help students, first-time homebuyers and our small and medium-sized businesses. In addition, this bill will make big Canadian banks pay a little more of their fair share—not enough, in our opinion, but it is a step in the right direction. We think it is important to pass this bill so we can help Quebeckers and Canadians as quickly as possible.

[Claude DeBellefeuille, Bloc, Salaberry—Suroît, QC]

Madam Speaker, I want to speak because I am a bit amazed by everything I am hearing from both sides of the House.

I do not understand the idea of imposing closure on Bill C-32. In every speech we made, we said that the Bloc Québécois supported Bill C-32. I also heard the NDP say that it supported the bill. The government therefore has everything it needs to move Bill C-32 forward, properly and in a reasonable manner. It also has the option of having us sit later to accelerate the process. Why would it impose closure? I really do not understand.

I would also like to say that I completely disagree with the allegation made by my colleague in the NDP that the Bloc Québécois is obstructing proceedings. That is not true. That is misinformation. On the contrary, we have given our support to many bills. We work seriously and thoroughly on the bills. Members can say anything they want in the House, but they should not say things that make no sense. As whip, I can say that Bloc members are thorough, that they work hard, that they contribute and that they do not obstruct proceedings to block the legislative agenda. In fact, the opposite is true.

With respect to Bill C-32, I will say it again and tell the minister that we support it. The government has the support of a majority to move Bill C-32 forward properly. Why impose closure? I am sorry to say that I truly feel that closure is an abuse of power when used to pass a bill that the government already has majority support for. Compared with other minority governments, this government has managed to have a record number of bills passed. More bills have been passed under this minority government than under previous ones.

I do not know what they are complaining about. It seems that the Liberals are worn out, that they are basically fed up with managing our institution, Parliament, our debates. It is true that it takes a certain amount of effort. They need to listen, negotiate and be open. I really feel that this government is worn out.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Madam Speaker, there is no question that Canadians are suffering right now. There is no question that people are having to use what little they have in their savings accounts just to make ends meet.

Since New Democrats have been elected to this place, we have always been steadfast in our mission of ensuring that we continue to deliver the promises we made to Canadians. Many of those promises are included in this fall economic statement and within Bill C-32. It is imperative that we get these supports to Canadians now.

This House is a place where traditions of debate live. Yes, that is an important thing, but in our condition of democracy today, what we are seeing is the Bloc Québécois do what it has done traditionally, which is to blame, blame, blame everybody else, and then we have the other block party, the Conservative block, which blocks everything else.

We really need to get this legislation passed. We need to get the support to Canadians. We are here to support Canadians, and that is what this bill does.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, quite frankly there are small businesses in the member's riding, in my riding and in the ridings of the Conservatives, the Bloc, the Greens and the New Democrats that want to keep growing and want to make sure they are going to get some tax relief when they do.

There are families looking forward to saving money so they can put it into a new savings account for their first home, but they cannot do that unless we vote and pass this law on to the next stage, unless we get to vote on Bill C-32.

We are talking about making sure that hydrogen investments, clean-tech investments and the good labour agreements we need to build the economy for the future get passed into law. We are talking about billions of dollars of investment into our country. That is what is at stake. That is why we need to get to a vote.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, the support measures in Bill C-32 will help Quebeckers and Canadians across the country. It is time that the government rolled out these support measures. We need to act and vote, because Canadians are counting on the measures in Bill C-32. These measures include strengthening our economy and positioning ourselves as the G7 country with the lowest deficit. Now is the time to act. That is why we are here today. We want to vote.