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

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, as an Albertan, I agree with some of what the hon. member says. Many Quebeckers and Albertans have the same problem with the federal government. The federal government thinks that it has all the good ideas and that no good ideas come from our provincial capitals.

With respect to health transfers, the provincial ministers of health and the federal Minister of Health are always fighting over who has control over our health systems. As an Albertan, I believe that my province is best equipped to manage our health care system.

I would like to hear more from the hon. member from Quebec.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Mr. Speaker, I would like to thank my colleague for his very pertinent question.

Basically, he is asking about health transfers. That is interesting, because my speech was about infrastructure and what the federal government is doing, sticking its fat nose in other people's business and blackmailing us with a gun to our head.

The exact same thing is happening with health transfers. It is exactly the same situation. It will undoubtedly be the same story in all sorts of other files, because the federal government wants a central government where it controls everything and where the provinces have no say. Quebec will end up being entirely sidelined, and that is exactly what we do not want.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, there are 16 Northern stores in northern Quebec. Northern showed profits of $13.2 million, and it is subsidized by the nutrition north program.

I wonder if the member agrees that the Canada recovery dividend proposed in this bill needs to be extended to the profits of grocery stores, which are in the millions of dollars.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Mr. Speaker, I heard my colleague's question, but I must say that it did not have much to do with my speech.

However, I know that my colleague is from the riding of Nunavut. It is useful to point that out, because we are jealous of the Canada-Nunavut infrastructure framework agreement. Interestingly, the earlier deadlines apply to the provinces, but not to the territories.

Perhaps a member from across the aisle can tell me why the government decided to push up the deadlines for the provinces and not for the territories. I am okay with the fact that it did not push up the deadlines for the territories, but why did it not do the same for the provinces?

[Mark Gerretsen, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate)]

Mr. Speaker, it is an honour to rise to speak to Bill C-32, the fall economic statement implementation act.

At the outset, one of the things I find extremely confusing, and I heard the Bloc say it this morning, is that the government has not tried to help Canadians during such a difficult time to deal with inflation, the inflation we are seeing not just in Canada but indeed throughout the world.

I will speak to that, but before I do, I want to read a quote. It says, “government is ruining the Canadian dollar, so Canadians should have the freedom to use other money, such as Bitcoin.” Are there any guesses where that quote came from?

[An hon. member]

Is it Donald Trump?

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, no, it was not Donald Trump, but his protege in Canada. That would be the member for Carleton, the official Leader of the Opposition.

He actually said those words. He said Canadians do not have faith in the Canadian dollar, so they should be able to use other forms of money. From his position of leadership, he was encouraging people to not trust the Canadian dollar, but to instead trust cryptocurrency, such as Bitcoin. I do not have to tell anyone what has happened to Bitcoin, not just over the last several months but indeed what we have seen in the last week.

Not only have we seen the collapse of cryptocurrencies, but now there is the new revelation of FTX and the games it was up to in order to create liquidity within its business, the experiences of bank runs that occurred as a result of that, and the collapse of their coin, seeing as much as $1 billion to $2 billion go missing. We are seeing what happens when there is no government control or government-backed currencies. That is exactly what we are seeing with the collapse of cryptocurrency and the revelations that are coming about as a result of the businesses that were heavily involved in cryptocurrency and investing in it.

This is where we are today. The member for Carleton has his famous video of when he bought that shawarma and paid for it with cryptocurrency. Let us assume he bought that Bitcoin in order to make that purchase. Who knows what he bought that Bitcoin for. Did he buy $10 worth of Bitcoin to make that purchase? What would that have cost him today? How much more Bitcoin would it have cost him to buy that shawarma today? It probably would have been about four or five times as much Bitcoin.

If we want to talk about inflation, the shawarma that he bought so famously and proudly using non-government-backed currency would cost him about four or five times as much today.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Mr. Speaker, on a point of order, are we debating a Conservative fall economic statement or are we debating the Liberals' fall economic statement?

[The Deputy Speaker, Conservative, Chris d'Entremont]

I believe that would fall under debate, but I would remind everyone of relevancy when we speak to bills in the House of Commons.

The hon. member for Kingston and the Islands.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, about 20 minutes ago, a Conservative colleague from across the way spent 10 minutes talking about one particular business in his riding and why that was not mentioned in a 10-minute fall economic statement for the entire country. However, somehow I cannot be critical of the Leader of the Opposition and his position when it comes to cryptocurrency. My humble advice—

[The Deputy Speaker, Conservative, Chris d'Entremont]

There is another point of order by the hon. member for Leeds—Grenville—Thousand Islands and Rideau Lakes.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Mr. Speaker, my friend from Kingston and the Islands sounds a bit hangry. Let us go get a shawarma.

[The Deputy Speaker, Conservative, Chris d'Entremont]

Of course, that is not a point of order, but for those of us who like shawarma, I know it is difficult.

The hon. parliamentary secretary.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, my friend for Leeds—Grenville—Thousand Islands and Rideau Lakes, who lives in the riding next to mine, should come visit me. I would be happy to take him out to lunch in Kingston any time. I will pay with Canadian cash, if he is okay with that.

However, what we are seeing is, unfortunately, that he and the Conservatives are up to their games again. Just the other night, he was up to the game of orchestrating quorum calls in the House. He was standing behind the door and would get all these Conservatives to leave the room, and then somebody would jump up and say, “Quorum, quorum.” This is what our official opposition is doing. These are childish games that I would not expect of my four-year-old in kindergarten.

They are elected as members of Parliament. The member for Leeds—Grenville—Thousand Islands and Rideau Lakes thinks that this place is a big joke, that the work we do here is supposed to be a big joke and that they can play these games. Do not let Bloc colleagues turn their heads from this, because they were equally responsible for that the other night too and playing these games. It is unfortunate. We have to do work for Canadians, but the member for Leeds—Grenville—Thousand Islands and Rideau Lakes would rather play games than do that. I would encourage him to get back to the business of Canadians, and if he wants to discuss it over lunch in Kingston, I would be happy to do that with him.

When we talk about the supports for Canadians, I will draw a comparison, and this is my whole point. I will draw a comparison between what this government has been doing to support Canadians versus the hyped-up rhetoric, division and sowing the seeds to plant doubt in Canadians when it comes to the financial institutions we have. The member for Carleton, the Leader of the Opposition, rather than working towards some of the measures contained in this bill, wants to get up in the House and tell Canadians to not believe in the Canadian dollar, effectively saying that it is worthless because it happens to be run by a bunch of people that he does not particularly like. Instead, he tells them they should go out and invest in bitcoin. What happened to bitcoin over the last six months? It absolutely plummeted, and anybody who took his advice would be in a pretty devastating position right now.

[The Deputy Speaker, Conservative, Chris d'Entremont]

The member for Berthier—Maskinongé on a point of order.