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.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-32s:

C-32 (2021) An Act for the Substantive Equality of French and English and the Strengthening of the Official Languages Act
C-32 (2016) An Act related to the repeal of section 159 of the Criminal Code
C-32 (2014) Law Victims Bill of Rights Act
C-32 (2012) Law Civil Marriage of Non-residents Act
C-32 (2010) Copyright Modernization Act
C-32 (2009) Law An Act to amend the Tobacco Act

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

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:05 p.m.

Liberal

Ruby Sahota Liberal Brampton North, ON

Mr. Speaker, my first question for the member opposite on her speech about the fall economic statement is about support for Canadians, in particular Canadian seniors. I know that many seniors in my riding were very appreciative of the doubling of the GST credit. It will be continued for the next six months, and it was implemented on November 4. It is help for many seniors, as many seniors receive that tax credit.

The member also talked about investment, job opportunities and companies leaving our shores. I feel that the member is painting a grim picture and maybe a falsehood of the reality of what is taking place in Canada. For the first two or three years that our government was in power, we saw an unprecedented growth in the foreign investment coming into Canada. It actually exceeded the 10-year average of investment in Canada.

We have a stable currency, and the government has made stable, transparent decisions when it comes to the environment and immigration. Many companies, especially in the IT sector, have been attracted to Canada.

I would like to know what the member thinks about all of that because she seems to be pointing to false negatives.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Conservative

Rachael Thomas Conservative Lethbridge, AB

Mr. Speaker, I think we have once again an example of an individual across the way representing her party using talking points that are supposed to somehow pacify Canadians.

The talking points do not fix reality. The talking points do not help the individual who cannot afford their home heating bill. The talking points do not help the 42-year-old living in their parents' basement because they cannot afford to buy a home. The talking points coming from across the way, and the heckles coming from across the way, by the way, do not assist the Canadian families that have to go to the food bank because they cannot afford to purchase their own food. The talking points do not help reality.

As much as the talking points might help the members opposite feel better about themselves at the end of the day, as they give themselves a little pat on the back and feel good about what they are supposedly doing, Canadians feel reality, not some sort of theoretical existence the member is trying to paint.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

The Deputy Speaker Chris d'Entremont

While I am not the arbiter of good questions and good answers, we should make sure that we ask short questions and get short answers so that everybody can participate in this great debate.

The hon. member for Jonquière.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Bloc

Mario Simard Bloc Jonquière, QC

Mr. Speaker, the Conservatives' carbon tax rhetoric never fails to surprise me. Let me point out that this tax does not apply in Quebec. To hear my Conservative colleagues tell it, the carbon tax can be blamed for everything from the temperature to a Canadiens win or a Bruins loss. I have a hard time seeing a connection between fighting poverty and the carbon tax. Even the best economists have not found a way to explain inflation in simple terms, but the Conservatives have it figured out: It has everything to do with the carbon tax.

I have a question for my colleague. She says that we need to put people first, that we need politics in Canada to put people first. As such, does she agree that it is totally unacceptable for the government to invest some $18 billion per year in the oil and gas sector and for us to own a $21-billion pipeline? Does she think that money could instead be used to feed the one in five people who skip meals? Does she think that money could be spent on providing heat for people who cannot afford it? We may well have resources, but we are not allocating them properly. That is what she should be thinking about.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Conservative

Rachael Thomas Conservative Lethbridge, AB

Mr. Speaker, there is a lot there.

Let us talk about the carbon tax.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Bad.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Conservative

Rachael Thomas Conservative Lethbridge, AB

Mr. Speaker, I thank the member across the way. He finally gave an honest answer and said it is bad.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Some hon. members

Oh, oh!

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

The Deputy Speaker Chris d'Entremont

I believe we have a point of order from the hon. parliamentary secretary.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I recognize the climate crisis. In no way would I want to give an impression that I would not support a price on pollution. I was just trying to help the member—

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Some hon. members

Oh, oh!

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

The Deputy Speaker Chris d'Entremont

Order.

That is not a point of order.

The hon. member for Lethbridge.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Conservative

Rachael Thomas Conservative Lethbridge, AB

Mr. Speaker, honestly, we have such an honest answer in the one the member across the way just gave, that the carbon tax is bad. I agree with him wholeheartedly: It is really bad. It is doing absolutely nothing to save the planet, but it is doing a whole lot to punish Canadians.

Fall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:10 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Mr. Speaker, I am pleased to stand today to speak to the fall economic statement.

I know the members across the way will struggle with the first thing I have to say, but it is true. This plan does nothing to address Canada's cost of living crisis. As a matter of fact, the economic update shows that the government revenues have increased by $40.1 billion in this year alone. This means that the inflation that is being created is not only increasing costs for everyday essentials that Canadians need on a day-to-day basis, but also increasing taxes for Canadians.

The economic update released by the Liberal and NDP coalition fails to address the cost of living crisis that we are in right now. It was created by the out-of-control spending of the Liberal government, with the support of its members on this side of the House.

The Prime Minister's inflationary deficits, to the tune of half a trillion dollars, have sent more dollars chasing fewer goods. This inflationary scheme is hiking the price of absolutely everything that Canadians need, and it is causing incredible duress in every home, or perhaps not in every home. I am taking that back because, obviously, there are people who are in a state of wealth, who may not have to go without food or wonder if they are going to be able to afford their rent next month. It might simply mean they put a little less fuel in their yacht and take one less trip, I do not know, but the truth of the matter is that for the majority of Canadians, these are very difficult times.

Canadians have never paid more taxes than they do under the Prime Minister. With that as the backdrop, we on this side of the House just asked the Liberals to consider two things. We said that if they would do these two things, it would make a huge difference to the quality of life of Canadians who have suffered more and more, year after year under the federal government.

The first was, simply, no new taxes. We did not even ask them to stop some of the taxes they had already introduced; we simply asked that there be no new taxes.

This included cancelling all planned tax hikes and the tripling of the carbon tax. This is what we were asking them to do, on behalf of Canadians, I might add. I know that quite often they lose perspective on what we are doing on this side of the House. We are representing the hearts and minds of Canadians, who are saying they cannot afford the heavy tax burden they are under. They are struggling to heat their homes.

Let us think about that. I never in my life dreamed that once we got past the development of this country to the point we are at now, we would have trouble in this nation paying to heat our homes and put food on the table.

I know this personally from the young people in my own life, who have children and who are trying to make those dollars stretch further than they have had to before. The level of desperation is growing.

Part of that is also the tripling of the carbon tax. We have heard it over and over again today: What is the big deal there? This is not an environmental plan. This is simply a tax plan.

On top of the carbon tax, the government has also put the GST. That is a source of revenue of millions and millions of dollars, yet it expects Canadians to turn around and say, “Oh, thanks so much for doubling the GST rebate for me on a temporary basis.”

No, this is not an environmental plan. It is a tax plan.

There is no question that the environment is an important concept, something that we need to work on, but I would like to say that what the government fails to understand or simply chooses not to look at is the reality of where we are in the world as Canadians. I want to say, right now, that the best thing we can do as Canadians is to give the world what it needs, and the world needs more Canadian best practices, more Canadian research and more Canadian innovation.

I have to tell members that in Saskatchewan, we are very proud of what we do. I have a map. I cannot show it in the House right now, unfortunately. It is too small. It shows Saskatchewan and the resources that we have in mining.

The resources are uranium, base metals, gold and major peat resources, which are desperately needed to grow anything. There are clean coal fields, helium, oil, gas, bitumen, potash and commercial forestry, and they cover the entire province. Nowhere is there not the potential and continuing ability to have a strong economy. If we add to that our agriculture and the manufacturing going on in the province, it is stellar.

The amazing thing is that it is always done with, in the backs of our minds, the importance of protecting our economy and our environment. The two do go hand in hand, but the government is stifling the economies of this nation. It is destroying our ability to maintain our own level of subsistence and to help the world. It is shutting down our economic engines simply because it wants to navel-gaze and virtue signal on the environment, when it does not need to do that.

In mining, agriculture and manufacturing, in everything that is done in the province of Saskatchewan, the environment is paramount. There is an amazing opportunity to go to Agribition and Ag in Motion in Saskatchewan, two amazing programs that show off what is done in Saskatchewan, and there is no recognition by the government of the incredible work that we have done and, even more importantly, that we continue to do.

I saw at Ag in Motion this amazing drone that was over 12 feet wide and lightweight. It carried its own gas and the product needed to treat the weeds in the fields, so that farmers are not running machinery over the fields and not spraying everywhere they go. It has been programmed to know exactly where it needs to spray. The environmental footprint is minimal, and the impact on the ground is also minimal. That innovation was created by a local farmer and is going to become the next amazing thing that farmers provide to this nation.

As a matter of fact, there is research at the University of Saskatchewan. I went to a carbon event put on by APAS, where it talked about what Saskatchewan does and needs to continue to do. That was four years ago, when it said that within a decade, increased innovation in agriculture in Saskatchewan would offset the entire oil sands. That is just one example of so many things Saskatchewan does.

Just recently, a private member's bill went to the industry committee on how to green the Prairies. When I went home, I went to an RM event and told them about this, that the government wanted to come and green our Prairies. I would suggest that it come to my riding and say that out loud. We have this wonderful thing called the grasslands, where cows roam, big animals, and they are sequestering more carbon now than when the buffalo roamed. The Cattlemen's Association talked about it at the industry committee, and I have to give credit where credit is due. Individuals made the comment that it was something they did not understand or know about in the past, yet they were bringing forward a bill on greening the Prairies.

I appreciate the time I have had today to talk about why this economic update serves no good purpose. It puts band-aids on wounds that the government has opened up in Canadians' lives and does not solve the problems it has created.

Notice of Time Allocation MotionFall Economic Statement Implementation Act, 2022Government Orders

December 5th, 2022 / 5:20 p.m.

Edmonton Centre Alberta

Liberal

Randy Boissonnault LiberalMinister of Tourism and Associate Minister of Finance

Mr. Speaker, an agreement could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to the report stage and third reading 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.

Under the provisions of Standing Order 78(3), I give notice that the minister will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the respective stages of the said bill.