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

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Mr. Speaker, going back to the point, the Conservatives know how to balance a budget. They know it does not balance itself.

They also know that they do not need to spend on the backs of Canadians like the government did, like giving $237 million to a Liberal insider MP and jet-setting around the world while the country is falling apart.

We know what responsible leadership looks like. We know how to balance a budget. They need to get on board, do the same and stop causing pain to Canadians.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, I thank my colleague for his comments.

I believe that his motion indicates that this economic statement was a useless endeavour, that it should have been part of a plan in a budget, and that the government should have been able to predict inflation with the data we already had last spring. This economic statement would have been useful had it included at least three things. First, it should have increased seniors' benefits because they are the ones mainly affected and they are unable to earn additional income. Second, there should have been significant health transfers because that is where we have difficulties. Finally, there needs to be a complete overhaul of EI because inflation could be a sign of a coming recession and, as a result, job losses.

Given that six in 10 workers currently do not have access to employment insurance, would my colleague be prepared to include measures that would support the overhaul of EI?

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Mr. Speaker, we tried to give immediate supports and help to seniors, those who are on fixed incomes. We put many motions forward in the House just in the last two months, including one cancelling the carbon tax and one calling for no new tax increases.

It is too bad the costly coalition does not believe in doing that. It does not believe in helping our seniors and those on fixed incomes, like the disabled. The coalition voted against it. We keep putting these common-sense solutions in front. If one was asking us today what we could do immediately, we would say to axe the carbon tax and put more money back into Canadians' pockets.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, unfortunately, I was quite disheartened to hear the member's characterization of the spending as an addiction to spending. My constituents suffer from real addictions that we have to talk about these days.

However, I want to talk about the need for recovery. It is quite critical, now more than ever. The question is this: Where do we recover these costs from? Does the member not agree that it is better to recover from large corporations that are benefiting from the poverty of Canadians?

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Mr. Speaker, there is a simple way to help recover the cost. It is getting out of the way of our world-leading energy sector, letting it unleash its potential and having more revenues come in.

Right now, what we are seeing is that the government's coffers are being filled up on the empty stomachs of Canadians. It is benefiting from inflation, and it is too bad that the NDP keeps propping it up and letting it do it.

[Alain Therrien, Bloc, La Prairie, QC]

Mr. Speaker, before I begin, I would like to seek unanimous consent from the House to share my time with my distinguished colleague from Mirabel.

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

Does the member have unanimous consent to share his time?

[Some hon. members]

Agreed.

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

The hon. member for La Prairie.

[Alain Therrien, Bloc, La Prairie, QC]

Mr. Speaker, part of an MP's job is to acknowledge the achievements of people from our riding. I am going to take a few seconds to talk about an important event that took place on the weekend.

There was a tournament of our national sport, the Canadian Hockey Enterprises Canadian Cup, in Saint-Constant, in my riding. Teams from Ontario and Quebec came to play, along with a local team, Arsenal Cadet D2 from the Jacques Leber school. Under the masterful guidance of Yann Hallé and Matt Grenon, our local team won the tournament. That is outstanding news.

I could list the players who truly put all of their talent on display, but it was a team win. I would first like to say that the goalies really put up a brick wall, letting in just two goals in five games and posting three shutouts. The defence held firm. No one was getting by them. The offence used all their energy to create scoring chances. All this combined helped Arsenal win. The players lifted the trophy in front of parents and friends who were extremely proud of their heroes. Congratulations to the Arsenal players for playing so well.

Now I will turn to Bill C‑32. That is what we are here for, and I get the feeling people are eager to hear what I have to say about it, so here goes.

I want to go over what led to the introduction of Bill C‑32. They say that opportunity makes a thief. They also say that heroes are born in times of crisis, and history has proven that to be true. We have witnessed truly difficult times, and we have seen extraordinary people, in both thought and deed, emerge.

To be honest, I am a very hopeful guy. I am optimistic by nature. People even stop me on the street to say so. I have pondered this difficult economic situation, with inflation at its highest point in 30 years and the looming threat of recession. People who take an interest in economics know how rare it is for these two conditions to occur simultaneously. It is very rare, and the situation is critical.

The health care system is broken everywhere in Canada, including in Quebec. ER doctors recently said we have hit the breaking point. This is serious. ER doctors on the ground working with people say things are really bad.

The rigours of inflation have hit seniors especially hard because they are on fixed incomes. These people were expecting help.

In addition, six out of 10 people do not have access to employment insurance. This system is so bad that CERB had to be created during the COVID-19 crisis because the system was unable to fulfill its mandate. In addition, employment insurance is what is known in economics as an automatic stabilizer. That means that when the economy is bad, employment insurance helps people who are in financial distress. We thought that the Liberals were actually going to do something about it and that the stage was set.

We were looking forward to the economic statement. Someone said to me that it was going to be as sensational as a kangaroo on a trampoline. It was set to be quite a show. I asked him if he was sure. Well, so much for the kangaroo. These are extraordinary times, but the statement was a massive flop. That reminds me of something else.

I went to a baseball game this summer. There was a peewee player who weighed at least 200 pounds and had a moustache. When he went up to bat, the pitcher threw some balls and everyone was sure he would hit one out of the park. He took a swing, hit a 10-foot grounder and basically staggered to first base. The defence was not at its best, but when the player got to first base, no one told him that he had not done well. He was patted on the back, and what he did was somewhat comparable to what the government has done.

The Bloc Québécois has taken stock of what the government has done, the short 10-foot ground balls, and we do have to pat it on the back, not because it has impressed us, but because what little it has achieved is not so bad.

Given the circumstances, we expected 100% and we got 3%. Hooray for the 3% and for the effort. That is what we can say to this government.

What is in this document? Nothing spectacular, but the government does use the word “inflation” 115 times. It was excited. It decided that it was not going to do anything about inflation, but that it was going to do an incantation. The government decided to talk about inflation so much that people would think that it is going to do what needs to be done about it. That is an old, outdated strategy, but the government thinks that it is enough to say “inflation” while gathering around the fire.

In the end, we see that nothing is happening. Simply saying a word over and over is not going to change anything. The government needs to take action, but as we have seen, it is not doing so. The government is staying static, and it is business as usual. That is what this government always does. Regardless of the situation, regardless of whether the issue falls within its jurisdiction, the government does nothing. Things have gotten to the point where, when it finally does do something, we are shocked because we are not used to it.

We can see that the government has dusted off some legislative standards and is serving up the same old thing when it talks about giving back money through the goods and services tax credits. It says that is good news. Last week in the House, the Liberals were applauding and cheering, and one of them even almost sent his glasses flying in the excitement.

That is an okay measure, but the Bloc Québécois had been calling for this to be done for a whole year. The Liberals dragged their feet, but at least they did it. It is the least they could do. It is a grounder, but it is still worthwhile.

What did the Liberals do for seniors? I did not say that because we are also dealing with a shortage of workers. We are not asking them to do something about the shortage of workers because they are way too mixed up. The Bloc Québécois is saying that we need to encourage those who are retiring to re-enter the workforce and give them tax exemptions. We need to tell them that if they want to go back to work, we are there to help, but that they are not being forced into anything. If they do not want to go back, that is not a problem.

What they are doing, what they have said several times, is that they will solve the worker shortage in a very simple way, namely, by giving nothing to seniors aged 65 to 75. Sooner or later, those seniors will have so little money that they will be forced to go back to work, and that will help solve the worker shortage. That is pure nonsense. That is not how it works. It must be an incentive. It should not be forced on them because these people do not have enough money to make it through this period of high inflation. The government does not understand this.

The Liberals have been telling us for seven years that something needs to be done about EI, that we have to wait and something is in the works. We have been waiting for seven years, but nothing has been done. They will not tell us anything. It seems that something is brewing, but no one will tell us what that might be.

It would have been easy to fight inflation intelligently. Inflation, among other things, is a result of supply chain issues. It is a result of our dependence on fossil fuels. That is a problem for us, which means that we are dependent on the fluctuating prices of fossil fuels, including oil. That is very easy to understand. We need to move toward clean energy, but the Liberals are incapable of doing so. They are encouraging oil companies to continue to produce. Canada is the only G7 country to increase its greenhouse gas emissions and they are happy.

I will end with something very simple. I was saying that we expected a lot and that the Liberals did nothing about employment insurance and health transfers. They would rather bicker. It is futile and they are bickering. A fat lot of good that does us.

However, they did do something very important and I am sure that, when I talk about it in my riding, people will say that this is quite the government. The Liberals implemented a Canada-United States agreement on the treatment of public servants who go to the moon. It seems that this is a far-sighted government that talks about what will happen on the moon but has no idea what is happening on earth.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, it is interesting to hear the Bloc and the Conservatives talk about inflation. They cover their ears or close their eyes when it comes to what is happening in the world around us. It is almost as if the pandemic was not there or there was no war taking place in Europe. Do the leader of the Bloc, the Bloc party in general, the leader of the Conservatives or the Conservative Party in general not recognize that there are things happening around the world that have had an impact on inflation?

In Canada, we believe we can do more, and we have been providing supports for Canadians. We understand the cost of groceries and the hardships Canadians are facing, and that is why we bring forward legislation and budgetary measures to support Canadians.

Will he not at the very least acknowledge that when we make the comparison, we are better off than the U.S.A., England and many of the European countries? Could he provide his thoughts on that aspect of inflation?

[Alain Therrien, Bloc, La Prairie, QC]

Mr. Speaker, I thank the member for his question.

Last week in my riding, I tried to use the Liberal argument. A 68-year-old pensioner told me that the price of everything had gone up. I tried the liberal technique. I looked him in the eye and said, “Sir, it is worse everywhere else.”

It does not work. These people have needs. They have expectations of the government. We have to help them. We can tell them that it is worse elsewhere, but they do not care. The Liberals have the tools. They just lack the will, unfortunately.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, I thank my colleague for his analogies about sports. It was so nice to hear him talk about that. It brings some excitement into the House.

The member talked a little about what this economic statement is, and it is really just a reannouncement of spending. It was interesting to hear the Liberals use the word “spending” today instead of the word “investments”. I also appreciate the member mentioning the word “inflation”, because I did not realize it was used only 115 times in the economic statement.

However, the members talked about a senior he had seen and looked straight in the face. I would like to hear more of how that senior responded to the inflationary cost of their home heating, which is anticipated to be coming this winter.

[Alain Therrien, Bloc, La Prairie, QC]

Mr. Speaker, if we are talking about this person in particular, there is a very simple solution. We have been talking about it for years. The member for Shefford does great work trying to bring the government to its senses. It is not complicated. We do not need to draw a picture to make the government understand it.

The Liberals have created two classes of seniors. How did they come up with that idea? Are they going to get a Nobel prize for that sort of thing? They say that there are two classes of seniors, those aged 65 to 75 and those older than 75. Where does that come from?

Given that inflation affects seniors aged 65 to 75 as well as those over 75, why are they treating seniors differently?

We are trying to make them see sense and we may end up succeeding. That is why we are asking questions. Is there a government economist capable of understanding that?

[Lisa Marie Barron, NDP, Nanaimo—Ladysmith, BC]

Mr. Speaker, I thank my colleague.

Today, during the debate on Bill C‑32, the Conservatives proposed getting rid of the carbon tax on home heating in order to make life more affordable for Canadians.

In Quebec, where the majority of heating is electric, this would have almost no impact on families who are struggling to make ends meet.

Does my colleague agree that eliminating the GST on home heating would be a better way to help Quebeckers and Canadians?