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.

Bill C-32—Time Allocation Motion

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Madam Speaker, I just cannot believe this is happening again.

The Liberal government ran on promises in elections that it was not going to shut down debate, yet it does it all the time. It is no wonder there are no Canadians who believe them any more. However, I am surprised that the NDP is supporting this unholy marriage, this costly coalition. They used to have principles on time allocation, and used to not allow it. It boggles the mind.

How are the people of Sarnia—Lambton supposed to have their voices heard in this place when I have not even had a chance to speak to Bill C-32?

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

Madam Speaker, I think some facts are in order.

Already with this very important piece of legislation, which will get much-needed support to Canadians, we have had 18 hours of debate and 120 interventions, and there will be a lot more opportunity at second reading for members in all parties to debate this really important piece of legislation.

The time has come for us to get to the next stage, because Canadians I have talked to are very much looking forward to having no more interest on their student loans, and they are looking forward to the supports in the fall economic statement, which is why we need to get to second reading.

[Kristina Michaud, Bloc, Avignon—La Mitis—Matane—Matapédia, QC]

Madam Speaker, I think it is reasonable for us to get as much time as we need to debate this bill. That is called parliamentary democracy.

The opposition parties, or at least the Conservatives and the Bloc Québécois, noticed a few things missing from the economic update, such as support for seniors 65 and up and support for seasonal workers. Those workers contributed to EI, but now the number of qualifying hours they have to work to be eligible for EI benefits has changed.

It is important to get the space we need to debate all that, share proposals with the government and potentially improve the bill. I could hardly believe my ears when I heard the Minister of National Revenue express astonishment that the opposition parties do not want to rush this bill through and are not supportive of the time allocation motion. She accused them of being mentally unstable.

That is pretty serious. The minister said that last spring in response to an opposition colleague, and she did it again on a local radio station in Gaspé.

I wonder if my colleague supports those statements and agrees with her.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, I have a great deal of respect for my Bloc Québécois colleague when it come to this issue.

I think that it is worth noting that we really need to do our homework as parliamentarians when it comes to House procedure and the important Bill C-32 in order to provide Quebeckers and Canadians with the support they so desperately need.

With regard to the duration of the debate, I want to mention that we have had 18 hours of debate and 120 speeches so far. As members are well aware, the issue can be examined more closely during the in-depth discussions held in committee and members will have more opportunities to speak there. Members will also be able to debate the bill at third reading.

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

Madam Speaker, I listened to my Conservative and Bloc colleagues, and they do not seem to understand our parliamentary system and the importance of sending bills to committee.

We have had a week of debate. The bill contains important measures, such as waiving the interest on student loans. In the past, we have seen the Conservatives try to block economic updates for months on end. These measures must be put in place. The NDP put pressure on the government to waive interest on student loans because we want students to be able to benefit from that. It is also important to send the bill to committee so that it can be improved.

Why do the other parties not seem to want to send the bill to committee, where they could propose amendments?

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, my colleague asked a very good question.

We are grateful for the NDP's support in the House to move this bill forward to the committee stage.

This is a serious situation. The supports in this bill will help Canadians at a time when they need it most. As my colleague said, we need to eliminate interest on student loans, cut taxes for small but growing businesses and make it more affordable to buy a first home.

My constituents have asked me to take action here in Parliament to provide that help, and that is what we are doing today.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, rising yet again on a time allocation debate, I am reminded of when, in previous Parliaments, the Conservatives under Stephen Harper used time allocation again and again and again. I sat in that corner with the Liberals when they were the third party. Consistently, every time, they said that if we allow this to happen, eventually Parliament and democracy will be diminished and time allocations will become so routine that they are used over and over again in future Parliaments. I think I am the last standing member of the opposition to Stephen Harper's use of time allocations for almost every bill. It has, as we worried, become routine. I will never vote for a time allocation on a bill. Even when, as is the case here, I support Bill C-32, I object to the truncation of time. It diminishes Parliament's work.

I do, though, sympathise with the governing party in that because we have ignored our rules for so long, nobody remembers that it is against Westminster parliamentary rules to give a written speech. I maintain that House leaders, when meeting together, should give an honest assessment to each other of how many members they really have who can speak to a bill without a written speech, without notes, and contribute to a thoughtful debate. I lament where we are right now, and this can be regarded as more a comment than a question, because the Liberals have completely forgotten all the reasons they used to warn that the use of time allocation for almost every bill was anti-democratic.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Madam Speaker, I thank the hon. colleague for her support of Bill C-32. I was not on the opposition benches at time to which she is referring. As a member and as a minister, I can say that I talked to Brad in my riding this week, who thanked us for making sure we got Bill C-30 and Bill C-31 done so quickly, because he wanted and needs the $500 housing support in that legislation. On the weekend, I talked to Mike and Laurie, who thanked us for our child care supports. They said to me at the All is Bright festival, “It's making a real difference, and we're able to make it through this inflationary cycle.”

There are millions of other Canadians waiting for us to get to work, to get to committee and to get Bill C-32 passed so that the people who need the help the most can get those supports when they need them the most.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Speaker, the very fact that we are having this debate is disappointing enough, but it is even more disappointing to hear once again how the New Democrats have completely surrendered to the Liberal Party and become literally the lapdogs of the Liberal government. I was on the finance committee—

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, on a point of order, I know the member is a little cranky and a little upset because nobody is paying attention, but the word “lapdog” is unparliamentary. I would ask him to withdraw that.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

I do not know if it is unparliamentary, but it is not very nice. I will take note of the comment and verify.

The hon. member for Calgary Rocky Ridge.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

I will spare you the research and I will withdraw the term if that would please you, Madam Speaker.

I was on the finance committee with the House leader of the New Democratic Party and I remember a time when he took seriously his obligation as a member of the opposition to oppose legislation where necessary and actually to take seriously parliamentary norms and the parliamentary duties and responsibilities of a member elected in opposition to the government. It is very disappointing—

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

Madam Speaker, on a point of order, the member knows that the NDP takes things seriously. That is why we have dental care now in this country, rental supplements and a doubling—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

That is debate. I will let the hon. member for Calgary Rocky Ridge finish his comment.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Speaker, I will let that part of it speak for itself. That is the extent to which this costly coalition is imposing itself on Canadians.

With respect to getting back to the bill itself, we heard an absurd speech from the government House leader last week on Motion No. 22, where he completely dismissed the idea that members should speak to legislation and justification of the draconian actions they take to limit debate in this House. We have a bill that would give Canadians more debt, more spending, more taxes, more inflation and higher interest rates, yet the minister would have us shut down debate before members have been able to weigh in and let their own constituents know, by using their voices in the House of Commons, to put their opinion on record on this bill. He should be ashamed of himself. I will let him weigh in on that and comment if he may.