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

[The Deputy Speaker, Chris d'Entremont]

Pursuant to order made on Tuesday, November 15, the House will now proceed to the consideration of Bill C-32 at the third reading stage.

[Diane Lebouthillier, Liberal, Gaspésie—Les-Îles-de-la-Madeleine, QC]

moved that Bill C-32, 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, be read the third time and passed.

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

Mr. Speaker, I ask for unanimous consent to share my time with the member for Scarborough Centre. Otherwise, I will be speaking for 20 minutes.

[The Deputy Speaker, Chris d'Entremont]

Is that agreed?

[Some hon. members]

Agreed.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I thought that might be added incentive.

It is really important we recognize something that came out of the Auditor General's report that I would like to start my comments off with this afternoon. When we look at it, whether with respect to the Prime Minister, the ministers or the members on this side of the House, we will find a consistent theme. We want to be there in a real and tangible way for all Canadians with an economy that works for all of us. That has been consistent virtually since we have been in government.

We have seen policy decisions from the get-go. Whether it was with respect to cutting the tax rates for the middle class, the complete overhaul of the Canada child benefit program or supporting seniors through the GIS going into the worldwide pandemic, there was virtually a smorgasbord of different programs provided. I know there has been a lot of reflection regarding the Auditor General lately, and I want to use her words with respect to the billions of dollars we have collectively approved to spend through the House.

I would like to quote the Auditor General, who said that she found, overall, that the programs were quite effective in meeting the government's objective of first getting support out to individuals and employers quickly, minimizing the increase in poverty or income inequalities, and then also helping the economy bounce back from the pandemic. That comes from the Auditor General.

I think there are members who, over the last couple of years in particular, saw the benefit of the government creating the CERB or wage subsidy programs and the supports for small businesses. Whether it was putting money into the pockets of Canadians or providing and protecting the jobs of Canadians, the Canadian government and the Prime Minister, working with an effective and active caucus, one that continuously sought feedback from communities from coast to coast to coast, understood their importance. We implemented budgetary and legislative measures so Canadians would be in a better position to bounce back after the pandemic. That is what this legislation, at least in good part, is about.

We, and the Conservatives, talk a lot about inflation. We are concerned about inflation. That is why we have this bill before us. When we talk about the inflation rate, yes, we are lower than the United States. We are lower than many of the European countries, England and others, but it is not good enough. The Conservatives are very critical of our inflation rate. I did a background check and in the last two years of Stephen Harper's government our inflation rate was higher than the U.S.A.'s. Today, our inflation rate is lower than the U.S.A.'s. At the end of the day—

[Greg McLean]

Because you're not growing our economy.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member is wrong. There are hundreds of thousands of jobs out there today. On virtually every point, this government has exceeded what Stephen Harper ever did. One of my constituents summed up quite well the comparison between the previous government and this government when he said that he hated to think what the pandemic would have been like if the Conservatives had been in government.

I believe Canadians are very much aware we have a national government and a Prime Minister who truly care about providing those important services. That is what allowed us, as the federal Auditor General has said, to bounce back to the degree we have.

However, that is not good enough. We believe we can do even more. If we talk about the social programs, things Canadians are very passionate about, I could cite health care and the additional billions of dollars from this government. In fact no government in the history of Canada has invested more money in health care than this government. We have achieved health care accords. We have recognized the priorities of Canadians by looking at long-term health care and mental health. In fact in this very bill we are debating today, we talk about expanding dental benefits for children under the age of 12. For the first time ever, there would be a national program to ensure there are dental benefits for children.

In the fall economic statement, we talk about supporting Canadians who are having a tough time with rent. We would provide rental subsidies to support, as best we can, those individuals. We can talk about the debt students have. Students are going through a very difficult time. We would eliminate the interest on federal student loans. It would not be a one-time thing, but permanent. We want to encourage our constituents and Canadians to look at alternatives, such as how to support the housing demands in Canada.

We have the intergenerational housing credit for people who want to construct suites for parents, seniors or people with disabilities. The Government of Canada is there to support that sort of initiative. We have a government that recognizes that seniors 75 and older incur different types of costs and that there are limitations for those seniors. In fact we made a campaign platform commitment to give a 10% increase on OAS for seniors over 75, and we are doing just that.

[The Deputy Speaker, Chris d'Entremont]

Order.

The hon. member for Montcalm on a point of order.

[Luc Thériault, Bloc, Montcalm, QC]

Mr. Speaker, I do not want to miss anything my eloquent colleague says, but I have had to adjust my earpiece to the maximum volume. There is no one in the interpretation booths, and the sound is bad.

When a different interpreter comes in, I can hear my colleague as if he were speaking directly into my ear. It is unacceptable that we are unable to fix our interpretation and sound problems.

This is not the first time I rise to mention this. I do not know why there is no one in the booths, but I know that the interpretation system right now is inadequate.

I will not be damaging my hearing and I want to be able to hear my colleague, who I like listening to, incidentally, even if I do not always agree with him. I would like—

[The Deputy Speaker, Chris d'Entremont]

I thank the member for his comments. There are three other booths near the lobbies, and there is someone in one of them.

The hon. member for Montcalm wishes to add something.

[Luc Thériault, Bloc, Montcalm, QC]

Mr. Speaker, here is the problem. The sound is good when there are people in the booths here in the House. The booths in the House are properly equipped for sound.

Every time we have an interpreter working remotely outside the House, the sound is bad, and it can damage our hearing. I demand, as a member of House, that my hearing not be jeopardized.

Let us fix the problem once and for all.

[The Deputy Speaker, Chris d'Entremont]

I again thank the member. We will try to resolve this problem. We can do another sound check this evening to ensure that everything is working properly.

I am not going to allow the hon. parliamentary secretary to the government House leader to back up and start again, but he could perhaps pick up from the last sentence.

The hon. parliamentary secretary to the government House leader.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, as members know, I would be more than happy to start fresh. However, I will continue on with something I know Canadians from coast to coast to coast are concerned with, and in particular so are my Bloc friends. My friends in the Bloc like the issue of health care, and maybe this is a good way for me to provide some thoughts in regard to it, because I am very passionate about health care.

I really believe it is, for me personally over the last 30 years as a parliamentarian, probably the number one concern, because I recognize the true value of having national health care. Whether someone lives in Vancouver, Winnipeg, Montreal, Halifax, any other municipality in between or up north, I would like to think there is a certain level of quality public health care no matter where.

Mobility within Canada is critically important. I say that because I made reference to the fact that the national government gives record amounts of money toward health care. I was a provincial politician for 20 years, and throughout those years, it seems, every year provinces asked for more money in health care. There is an expectation that the national government should do more than be an ATM.

In fact I can recall the days when there was a huge tax point transfer. Provinces took a tax point transfer instead of a cash transfer, and I was not a big fan of that. I do not think we should do that, or anything of that nature, into the future. I believe Canadians want a quality health care system. I am very proud of our government, whether it is the Prime Minister or the Minister of Health in particular, and their approach in dealing with health care here in Canada.

As a government we continue to support health care. We want to work with all the different stakeholders, and I look forward to that ongoing debate on health care, in terms of this legislation. This is good, sound and solid legislation that would be there to support Canadians. I wish all members would vote in favour of it.

[Luc Thériault, Bloc, Montcalm, QC]

Mr. Speaker, the Bloc Québécois asked that Bill C-32 include a commitment from the government to increase health transfers. Since the third wave of COVID-19, every expert has said that what Quebec and the provinces need is predictability to be able to improve their systems. Short-term and one-time investments are not going to solve the problem.

I would like to ask my colleague what the government is waiting for to meet the needs of Quebec and the provinces, patients and staff. If we want to rebuild our healthcare systems, we need respectable health transfers. We asked for 35%. The provinces spend $200 billion a year on health, while the federal government kicks in $42 billion. Increasing transfers by 10% will not solve the problem.

If health is important to my colleague, does he agree with the unanimous demand made by Quebec and the provinces?