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

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 8, 2022 Passed 3rd reading and adoption of 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
Dec. 7, 2022 Passed Concurrence at report stage of 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
Dec. 7, 2022 Failed 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 (report stage amendment)
Nov. 22, 2022 Passed 2nd reading of 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
Nov. 22, 2022 Failed 2nd reading of 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 (reasoned amendment)
Nov. 21, 2022 Passed Time allocation for 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

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:30 p.m.


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Bloc

Jean-Denis Garon Bloc Mirabel, QC

Madam Speaker, my colleague did an astute job of outlining the problems affecting the people in her riding.

In addition to all the problems she referred to, there is the fact that some of my constituents are sick and in hospital. We know that Quebec and the provinces are unanimous in calling for health transfers to be increased immediately and unconditionally to cover 35% of system costs. Since the arrival of the new Conservative leader and the bump their party has gotten in the polls, it seems like the Conservatives' support for boosting health transfers to 35% has eroded.

Can my colleague confirm today that the Conservatives support the call of Quebec and the provinces to increase health transfers immediately?

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:30 p.m.


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Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Madam Speaker, that is a tough question because it depends on the two parties.

The first party is the provinces and the other, unfortunately, is the federal government. We have seen the failures when it comes to Canadians finding doctors, and we have seen the failures of the federal government when it comes to medication for children.

Unfortunately, I would say to my hon. colleague that I do not have a lot of faith that this government will find ways to work with the provinces. However, like my colleague, I still have hope.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:30 p.m.


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Conservative

Jeremy Patzer Conservative Cypress Hills—Grasslands, SK

Madam Speaker, I am wondering if my colleague can break down a bit more some of the regional issues she is facing in her community that are not being addressed or are being failed by this fall economic statement.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:30 p.m.


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Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Madam Speaker, I have so much respect for the member of Parliament for Cypress Hills—Grasslands. In fact, I was just talking him up about canola growers the other day, as they face additional failures and frustrations with the government. However, I did not have a chance to address access to fertilizer at a time when not only we as Canadians but the world is facing significant food shortages as a result of the situation in Ukraine.

I know that my colleague, the member for Cypress Hills—Grasslands, is no stranger to the frustration we both feel as members of Parliament from the Prairies given, frankly, the slogging that our region has taken on a continuous basis from the government. This is not only to the detriment of our own regions, but to the detriment of Canadians as well. For him, as I mentioned, it is agriculture. For me, which I touched upon in my speech, it is the problem of energy and our inability to create and share it with the rest of the world. I believe it is truly a gift from Canada to the rest of the world.

I really appreciate the opportunity to highlight just a couple of the small challenges we face as prairie—

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:35 p.m.


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The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

Resuming debate, the hon. member for Battlefords—Lloydminster.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:35 p.m.


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Conservative

Rosemarie Falk Conservative Battlefords—Lloydminster, SK

Madam Speaker, the overall quality of life in Canada is in significant decline under the NDP-Liberal government, and we have the evidence all around us. Government is costing Canadians more while achieving less. Violent crime rates are increasing under the Prime Minister. Food inflation, as has already been said in the House today, is at a 40-year high. The cost of living crisis is ballooning, and basic necessities are becoming more and more out of reach for far too many Canadians. In fact, a record number of Canadians used food banks this past year alone, and reports are telling us that one in five Canadians are skipping meals. Those records are truly shameful.

The fall economic statement was yet another opportunity for the NDP-Liberal government to take meaningful action to tackle inflation. It was an opportunity to course correct and help the growing number of Canadians who are struggling to make ends meet. Instead, this costly coalition is continuing with its out-of-control inflationary spending and activist-driven policies that are hurting Canadians.

At the most, the NDP-Liberal government doled out more platitudes and offered remarkably out-of-touch budgeting tips to Canadians. Unlike this costly coalition that thinks it can keep spending and spending and that the budget will balance itself, Canadians already understand that they have to have a budget. The one in five Canadians skipping meals to help make ends meet certainly do not need advice about cancelling a Disney+ subscription from the out-of-touch finance minister and her government. They need a government that is going to stop pouring fuel on the inflationary fire with endless deficit spending and stop hiking taxes. Canadians need a government that is not going to keep making it harder and harder for them to pay their bills, heat their homes or put food on the table.

The reality is that Canadians are getting hit on all sides. A paycheque is not going nearly as far as it once did. Not only is the value of the dollar in their pockets decreasing as costs of basic necessities soar, but taxes are also going up. In fact, Canadians have never paid more in taxes. Quite frankly, Canadians are out of money.

That is why the Conservatives put forward two clear demands ahead of this fall economic statement: stop the taxes and stop the spending. There should be no new taxes on Canadians. This costly coalition should not be profiting off the empty stomachs of Canadians just so it can spend those dollars on its activist-driven agenda. It needs to keep those dollars in the pockets of Canadians so they can spend it on their own families' priorities.

This costly coalition’s plan to triple the carbon tax is cruel. The cost of home heating is expected to be double this winter, and they want to triple the carbon tax on that bill as well. It is a carbon tax, I might add, that has no meaningful impact on the environment, has failed to help the NDP-Liberal government meet a single one of its climate targets and has only succeeded in hurting Canadians, especially those living in rural and remote areas.

This costly coalition wants to triple the hurt. Cold winter weather has already arrived, and those higher home heating bills are already a reality. Basic necessities like home heating should not be out of reach for Canadians. In a country with an abundance of natural resources, affordable energy should be a reality for all Canadians, but it is far from a reality when we have an NDP-Liberal government that is so dead set on keeping our energy in the ground.

This is the same NDP-Liberal government that seems to have no problem at all importing energy from foreign countries with lower environmental and human rights standards. Only a Conservative government will remove the obstacles that it has put in place to strangle our resource sector. Not only Canada but the world needs more Canadian energy. Never has that been more obvious than in this last year as Putin wages war in Ukraine. Canada's failure to meet its energy potential is actually failing our allies.

Just the same, food insecurity is a growing concern globally. Adding insult to injury, the finance minister had the audacity to stand up in front of Canadians and proudly say that we grow food to feed the world while she knows full well that the government is destroying the viability of our agricultural sector.

Their fertilizer reduction plan not only threatens global food security but also food security here at home in Canada, not to mention its impact on food production and the cost of groceries.

When it comes to their failed carbon tax, our farmers and our producers are some of the hardest hit. Their excessive tax bills are in no way offset by the government’s measly tax credit. It is truly a slap in the face to our farmers, who are not only producing high-quality and nutritious food but are also doing far more to help the environment than the failed NDP-Liberal carbon tax.

There are obvious solutions to reversing the decline in the quality of life in our country, but the NDP-Liberal government cannot keep doing more of the same. To tackle the cost of living crisis that we find ourselves in because of the Prime Minister’s out-of-control spending, we have to bring government spending under control. It is one of the reasons Conservatives called on the government to cap government spending.

We asked the government to commit to matching any new spending with equivalent savings, just as, I am sure, many Canadians have to balance their own household budget. This fall economic statement continues down the path of spending beyond their means, at the expense of Canadian taxpayers and future Canadian taxpayers.

The members on that side of the House will be very quick to stand up in this place and try to tell Canadians that all of their deficit spending was and is necessary, and that they did it to support Canadians. The non-partisan PBO has already said that more than a third of the government’s spending had nothing to do with the pandemic.

The long list of wasteful spending continues to grow. Whether it is the overpriced arrive scam app, luxurious hotel stays exceeding $6,000 a night, CERB cheques that were issued to prisoners or wage subsidies given to corporations paying out dividends, there is obvious wasteful spending under the government’s watch.

The reality is that the NDP-Liberal government’s wasteful spending does nothing to support Canadians, but it does make more Canadians vulnerable and in need of support.

Only Conservatives are committed to stopping the inflationary deficit spending and to stopping the funding of government programs with printed cash. The potential for growth is immense, but we need to cut red tape and remove the gatekeepers that are standing in the way of our economic drivers. Instead of more cash chasing fewer goods, we need more goods.

The Prime Minister will find every and any excuse to lay blame elsewhere for the current cost of living crisis, but his failed and costly policies have directly contributed to the challenges that Canadians are facing today. The bills for his activist-driven policies are due and, unfortunately, it is Canadians who are left to pay for it.

The fall economic statement is inflationary, and it fails to address the challenges that Canadians are facing because of the NDP-Liberal government.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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Liberal

Kody Blois Liberal Kings—Hants, NS

Madam Speaker, my hon. colleague certainly talked about her concerns around the price on pollution, but what I have asked members of His Majesty's loyal opposition is why they ran on a platform to price carbon.

Just over a year ago, the member ran on a Conservative platform that would have established a price on pollution for a plan that would have rewarded those who were emitting more. She did run on it. I find it a little facetious for her, a year later, to stand in the House and say what a terrible idea it is.

Can the member explain to her constituents, and indeed to all Canadians, why there has been such a change over the last year in her position?

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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Conservative

Rosemarie Falk Conservative Battlefords—Lloydminster, SK

Madam Speaker, if we look in Hansard, I have always been against a carbon tax. This carbon tax has done nothing for the environment. The Liberals and the NDP have not met the targets they have set over and over. I have seen bills from my farmers of $10,000 and $20,000 to dry their grain. I have seen the GST being collected on the carbon tax.

A great question for the government is this. Why is it collecting GST on the carbon tax? This tax on a tax is hurting Canadians.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Madam Speaker, I was listening to my colleague's speech, and throughout it she talked about inflation. There was no mention of the fact that corporations in Canada avoided paying $31 billion in tax last year. There was no mention of the obscene profits that the oil and gas companies, Loblaws or the big grocers are making. When it comes to talking about inflation, the Conservatives will never, ever, with all their might, talk about obscene corporate profits. It is like their kryptonite.

In the United Kingdom the Conservative government not only has a windfall profit tax on oil and gas companies but also raised it to 35%. It realized those companies were making too much money and it was time to level the playing field for the British people. Through you, Madam Speaker, why is it that the United Kingdom Conservatives have the courage that Canada's Conservatives are so obviously lacking?

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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Conservative

Rosemarie Falk Conservative Battlefords—Lloydminster, SK

Madam Speaker, I am very disappointed in the member for that question. I am here because the people of Battlefords—Lloydminster sent me here, and these damaging NDP-Liberal policies are destroying their lives. I spoke with constituents who cannot get their kids to the hospital because it is two and a half hours away. I spoke with seniors who cannot afford their medication because they have to pay obscene tax to get—

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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NDP

Lindsay Mathyssen NDP London—Fanshawe, ON

You voted against pharmacare.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

Can we allow the hon. member to answer the question that was asked?

The hon. member for Battlefords—Lloydminster.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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Conservative

Rosemarie Falk Conservative Battlefords—Lloydminster, SK

Madam Speaker, I am talking about the ability of my constituents, who live in small, remote, rural communities, to get to a bigger centre to get their prescriptions, to get their kids in sports, to get groceries or to even get the mail. The carbon tax is hurting the people I represent. I would prefer that the government take its hands out of the pockets of these families, let them spend the money they need to on their families and not have the middleman tell them where it goes.

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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Bloc

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

Madam Speaker, I would like to hear from my colleague.

Bill C-32 is notable for what it does not contain. Old age security was increased for people 75 years and older. This created a two-tiered system for old age security, because those between 65 and 75 got nothing.

In my colleague's opinion, should there be just one benefit? Should the benefit not be increased for all seniors, not just those 75 and over?

Second ReadingFall Economic Statement Implementation Act, 2022Government Orders

November 21st, 2022 / 1:45 p.m.


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Conservative

Rosemarie Falk Conservative Battlefords—Lloydminster, SK

Madam Speaker, one thing I noticed is that the current Prime Minister is great at turning people against one another. He found a way to have two tiers of seniors, just as with child care. There are a lot of people in my constituency who cannot access this $10-a-day child care because they do not qualify. They do not work nine to five. They work shift work. Some of them work all the time and they cannot access it.

The current government is very good at railroading the provinces, not having discussions with them, doing whatever it wants and pitting Canadians against one another.