Evidence of meeting #3 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was businesses.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Catherine Demers  Director General, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development
Trevor McGowan  Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Yves Poirier  Director, Economic Development, Business Income Tax Division, Department of Finance
Douglas Wolfe  Senior Director, Strategic Policy and Legislative Reform, Strategic Policy, Analysis and Workplace Information Directorate, Labour Program, Department of Employment and Social Development
Benoit Cadieux  Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development
Maximilian Baylor  Senior Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance

4 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Is there any verification?

4 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

As we mentioned in previous questions, the Canada Revenue Agency does do post-verification audits based on—

4 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

How many of those have been done?

4 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

We will come back with those numbers as requested earlier.

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

All right.

When you say “verification audits”, how do they verify whether someone was sick after the fact?

4:05 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

They have the authority to ask for proof—for example, a medical certificate—that claimants can provide, if they desire.

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Are claimants required to get a note from a doctor before they apply for they benefit?

4:05 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

They are not.

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

If Revenue Canada were to ask for one after the fact, the claimant would obviously say, “I didn't get one, because it's not required”.

4:05 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

There are other things that the claimant could have, such as proof that they took a test and that they were tested for COVID-19.

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

What if they don't have any of that? What would happen then?

4:05 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

I would have to defer to colleagues from the CRA to determine how they would—

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Is there any proof that someone has to provide to show that they were, in fact, sick in order to get the $500 a week, or roughly $2,000 a month?

4:05 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

There is no proof that somebody would have to show that they were, indeed, sick. However, as I mentioned, the CRA does have the authority to ask for information to determine eligibility for benefits.

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

No information is required, so, in order to be eligible, they do not have to have a doctor's note. They do not have to have a test showing any particular illness; they can simply attest that they are sick and they receive $2,000 a month.

4:05 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

At the time of application, that's correct, but the CRA can verify and ask for additional documents afterward.

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

I understand that, but even if they did ask for those documents afterward, the claimant can simply say, “Those are not required; therefore, I did not seek them”. Is that correct?

4:05 p.m.

Director, Special Benefits, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Benoit Cadieux

That could happen. You are correct.

4:05 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Right. Okay—

4:05 p.m.

Liberal

The Chair Liberal Peter Fonseca

You're out of time, Mr. Poilievre.

We are moving now to the Liberals. We have Madame Chatel for five minutes.

December 7th, 2021 / 4:05 p.m.

Liberal

Sophie Chatel Liberal Pontiac, QC

My colleague's question reminded me of what we have to provide to our whip if we are sick and cannot attend the chamber, but that's another question.

I'm concerned about the impact of not passing this bill in time for the Christmas break. I have a question about part 2, but let's start with part 1.

What are the impacts of not adopting the measures on the specific industry that we are intending to help?

I have also noticed that, in the bill, there are other regulations and existing legislation being amended by this bill. Can I have the technical impact of the coordination measures on those provisions in the bill? If the bill doesn't pass before Christmas, what happens to the other regulations that we intended to amend?

4:05 p.m.

Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance

Trevor McGowan

I can certainly start with the answer in respect of part I. The simple answer is that the Canada Revenue Agency requires royal assent of Bill C-2 before it can make payments under the wage subsidy or any of the programs in part I after the end of November, which was the legislated expiration time.

There are some housekeeping measures relating to regulations in the bill, in particular for the twentieth and I think twenty-first qualifying periods, where parameters for those extended periods that have been done through regulation are being moved into the act. It may not always seem to be the case, but we do try to make the rules as user-friendly as possible. Moving those parameters from the regulations to the act puts everything in one place but does not result in a substantive change. For the twenty-third qualifying period, which ends November 22, I think, that could be made through either the normal regulatory process or this bill.

If regulations are in fact promulgated before this bill receives royal assent, then the bill would have the effect of repealing those regulations and moving them into the act along with the parameters for the twenty-first qualifying period, to tidy them up. For the periods ending after November, which are currently precluded under the existing law, the Canada Revenue Agency would be unable to make payments before royal assent of this bill.

4:10 p.m.

Liberal

Sophie Chatel Liberal Pontiac, QC

Thank you. One of the concerns I have is that people will not receive help before Christmas, so thank you for that answer.

My next question will be about part 2 of the bill. It's about measuring the impact if the bill is not passed before the holidays.

Ms. Demers, which groups would be most affected if benefits were not extended through this bill?

4:10 p.m.

Director General, Employment Insurance Policy, Skills and Employment Branch, Department of Employment and Social Development

Catherine Demers

Thank you for the question.

We've seen the use of economic recovery benefits, sickness benefits and family caregiver benefits change along with the waves of the pandemic. Each time more severe restrictions have been implemented, the use of these benefits has increased. People use the benefits when there's a need for them. As the restrictions are lifted, the number of applications goes down.

In terms of the profile, we know that family caregivers, for example, are mostly women. About 60% of the applicants are women. These women are taking care of children as a result of school closures or looking after parents since facilities are closed because of COVID‑19. They can't go back to work. In addition, some of the lower income or self‑employed workers may not have the protections provided by regular employment that would enable them to take time off.

This program addresses some major shortcomings. Given the uncertainty surrounding the course of the pandemic, it provides a significant public health measure and ensures that individuals don't need to return to work and potentially put others at risk.

4:10 p.m.

Liberal

The Chair Liberal Peter Fonseca

Thank you, Ms. Demers.

We'll now move to the Bloc with Madame Sinclair-Desgagné.