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

[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 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.

[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?

Business of the House

[Mark Holland, Liberal, Ajax, ON]

Mr. Speaker, I thank my hon. Bloc Québécois colleague, who is a very reasonable person. He is right, but when someone asks me a question, it is my job to answer. Every time I am asked the Thursday question, I try to answer as clearly and directly as possible.

Moving back to the calendar, as I know the hon. House leader for the opposition is keenly awaiting this information, this afternoon and tomorrow we will continue with the debate on Bill C-32, concerning the fall economic statement. Of course, we look forward to that hon. colleague's support for this.

Next week, we will be focusing on the second reading debate of Bill C-20, the public complaints and review commission act; Bill S-4, COVID-19 measures; and Bill C-27, the digital charter implementation act, 2022.

The House resumed consideration of the motion 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 second time and referred to a committee, and of the amendment.

Taxation

[Terry Beech, Liberal, Parliamentary Secretary to the Deputy Prime Minister and Minister of Finance]

Madam Speaker, as the Canadian economy faces a period of slower economic growth due to the global challenge of high inflation and higher interest rates, our government understands that many Canadians are worried. They are certainly not relieved by the speech they just heard, but it is important to remember that inflation is a global phenomenon. It is a lingering result of the COVID pandemic.

Despite the Conservative leader's continued attempts to minimize the effects of the war in Ukraine, inflation has been exacerbated by the war in Ukraine and by the supply chain challenges that are affecting people and businesses, frankly, right around the world. Fortunately, there is no country better placed than Canada to weather the coming global economic slowdown and thrive in the years ahead. Indeed, Canada has the strongest economic growth in the G7 so far this year, and we have maintained our position as the G7 country with the lowest net debt and deficit-to-GDP ratios. Our country has a AAA credit rating, a recognition of our strong fiscal position. Canada also has an unemployment rate near its record low, as 500,000 more Canadians are working today than were before the pandemic.

While Canada's inflation rate is less severe, at 6.9%, than that of many of our peers, like the United States, at 7.7%, the United Kingdom, at 10.1%, and Germany, at 10.4%, we appreciate that this will continue to be a difficult time for many Canadians. That is why we are moving forward with our affordability plan, which includes targeted measures worth $12.1 billion. It is already putting more money back into the pockets of the most vulnerable Canadians and those who need it the most. While the Conservatives continue to oppose these compassionate measures, we will continue to be there for Canadians with support that has been carefully designed to avoid making inflation worse.

For example, individuals and families receiving the GST credit started receiving an additional $2.5 billion in support earlier this month. Despite Conservative efforts to oppose and block our compassionate plan, with Bill C-31, we are proposing to create the Canada dental benefit for children under 12 and families with annual incomes under $90,000 who do not have access to a private dental plan. Following the fall economic statement, we are also moving forward with Bill C-32 to make the federal portion of all Canada student loans and Canada apprentice loans permanently interest free, including those currently being repaid.

Canadians can count on our government to continue running a tight fiscal ship. I would like to remind my hon. colleagues that all of these support measures are targeted, fiscally responsible and continue to reduce our debt-to-GDP ratio.

When it comes to pollution pricing, we know that a national price on pollution is the most effective and least costly way of reducing greenhouse gas emissions while putting money back into the pockets of most Canadians. I would like to remind my hon. colleagues that unfortunately climate action is no longer a theoretically political debate. It is an economic necessity.

Canadians all know that the Conservatives do not have a serious plan to tackle climate change, which means they also do not have a plan to grow the Canadian economy. Earlier this month, the Parliamentary Budget Officer published an analysis showing that climate change has negatively impacted and will continue to negatively impact the Canadian economy. Our plan makes life more affordable, grows the economy, fights climate change and puts Canada in a great position to benefit from the growing global opportunity that is clean growth and from the creation of hundreds of thousands of good-paying, sustainable jobs.