Thank you, Mr. Chair.
I'm Lindsay Gwyer. I'm the director general for income tax legislation at the tax legislation division at Finance.
I'll provide a brief overview of part 1, and I have colleagues here who can provide an overview of parts 2 and 3.
Part 1 contains the income tax amendments in the bill, as well as some related amendments to other statutes. There are 21 measures in part 1. They were all announced in budget 2022 or earlier. Draft legislation for all of these measures has been released to the public for consultation in the past.
Given that I have only five minutes, I won't give an overview of all of the measures. I'll give a quick rundown of which budget 2022 measures are in part 1 of the bill.
There's a rule to address flipping of residential properties.
There is the creation of the tax-free first home savings account.
There is a phase-out of flow-through shares for oil, gas and fossil fuel sector activities.
There's the creation of the critical exploration mining tax credit.
There's the creation of the Canada recovery dividend, which is a one-time 15% tax on the income of banks and life insurers above a billion dollars. There's also an additional tax on banks and life insurers, which is a new permanent 1.5% additional tax on the income of banks and life insurers above $100 million.
There is the doubling of the first-time homebuyers' tax credit from a $5,000 credit to a $10,000 credit, calculated at a 15% rate.
There's the extension of the medical expense tax credit so that it would cover expenses related to surrogacy.
There is the creation of a new multi-generational renovation tax credit, which would allow deductions for expenses of up to $50,000 to create a secondary unit to allow a senior or a person with a disability to live with a relative. That's a 15% credit calculated on up to $50,000 of expenses.
There's a change to the phase-out rate for the small business deduction, so that it would phase out more slowly. Where a Canadian controlled private company has taxable capital in Canada above $10 million, the rate reduction, instead of being fully phased out at $15 million, would be phased out at $50 million.
There are changes to the taxation of insurers to address new international financial reporting standards: IFRS 17.
There are changes to the disbursement quota applicable to registered charities.
There are amendments to the general anti-avoidance rule to allow it to be applied to tax attributes that have not yet been used.
There are integrity rules to address what are called “coupon stripping arrangements”, which are arrangements whereby non-residents try to avoid Canadian withholding tax.
Finally, there are amendments to add air-source heat pumps to the clean technologies that benefit from various incentives.
In addition to that, there are some other measures that were announced in budget 2021 or earlier. I won't list them all, but in general they are integrity measures and measures that are intended to increase the CRA's ability to audit and to gather information from taxpayers.
We would be happy to provide more detail on any of those measures during the question portion.
I'll turn it over now to one of my colleagues, who will talk about part 2.