Mr. Speaker, I am pleased to rise in the House today to speak to Bill C-4, our Conservative government's plan for securing Canada's future.
This economic action plan focuses on the things that matter to Canadians: jobs, growth, and long-term prosperity. In budget 2013, we are connecting Canadians with available jobs, helping our manufacturing and business sectors succeed in the global economy, investing in research and innovation, and supporting the building blocks of this great nation: families and communities.
What I would like to focus on specifically today in this budget implementation bill are our efforts to support job creators, streamline systems, close tax loopholes and prevent tax evasion, and demonstrate respect for taxpayers' dollars.
Bill C-4 covers a broad number of acts of Parliament, so what I intend to highlight in the relatively brief time I have to speak are some aspects of this bill that stand out for me and will resonate with Canadians.
Let me start with the lifetime capital gains exemption. The lifetime capital gains exemption exists to reward Canadians for investing in small businesses and makes it easier for the owners to pass their businesses along to their children.
Our Conservative government believes strongly in supporting small business people and entrepreneurs, and that is why we are increasing the lifetime capital gains exemption by $50,000. It will be effective for the 2014 tax year and it will increase with inflation each year after that.
We understand that it is important to reward hard work, allow Canadians to keep more of their own wealth, and support family businesses, and that is what this measure accomplishes.
Now let me talk about the accelerated capital gains allowance for clean energy generation equipment.
Bill C-4 will modify the accelerated capital cost allowance for clean energy generation equipment. The capital cost allowance regime under the income tax system can be accelerated for some clean energy generation equipment. To further encourage businesses to invest in clean energy generation and clean energy equipment, our Conservative government is expanding the biogas production equipment that is eligible for inclusion under this regime.
I believe there is a bright future for clean energy in Canada. Measures like these are paving the way for a better future, one in which we will rely less on antiquated technology and will move into an era of cleaner energy.
These measures will expand eligible waste to include pulp and paper waste, winery and distillery waste, and separated organics from municipal waste. This measure will also expand eligibility under the tax regime to include all types of cleaning and upgrading equipment used to treat eligible waste.
Now I would like to speak about restricted farm losses. Canadians understand that farmers feed our communities and play an important role in the food security of this country. We honour their hard work and we give them all the support they deserve.
That is why our Conservative government is increasing the restricted farm loss limit to $17,500 of deductible farm losses annually. We realize the sacrifices farmers make to work their land and we understand that for reasons beyond anyone's control, production will not be the same from year to year. That is why we have taken this measure.
At the same time, Bill C-4 will carry an amendment to clarify that taxpayers' other sources of income must be less than their farming income in order to take advantage of the full farm losses deduction.
Our Conservative government aims to protect farmers from unexpected losses. We are taking this measure to ensure that the bulk of these resources are aimed at those farmers for whom farming is the bulk of their livelihood.
I would also like to speak about software for the electronic suppression of sales.
We know that the best way to get ahead is to work hard and play by the rules, but unfortunately some people in our society feel they can cheat the system with impunity. The vast majority of businesses in the country are run by honest and hard-working Canadians, but for those very few people who have decided not to pay their fair share, we are introducing criminal offences and monetary fines under the Income Tax Act that are specifically aimed at combatting tax evasion software. This software is designed with one intention in mind: to falsify records for the purpose of tax evasion. People who use electronic suppression of sales software would be subject to any of a number of new penalties.
In terms of administrative monetary penalties, anyone who uses electronic suppression software would be liable for a penalty of $5,000 for the first use and an additional $5,000 for any subsequent use. If a person possesses or acquires this illegal software, there would be a penalty of $5,000 for the first offence and a fine of $50,000 for any subsequent offence.
Of course, in this bill we reserve the toughest measures for those who have decided to manufacture and sell these illegal products. It is more than just unscrupulous to make money from selling a product that allows people to engage in tax evasion, thereby skewing the playing fields for all businesses. For a first offence, the developer or the seller of such software would be fined $10,000; for a subsequent offence, this would rise to $50,000.
In terms of criminal offences, the possession, use, acquisition, manufacture, development, or sale of this illegal software by a person could be dealt with on summary conviction, which would entail a fine of between $10,000 and $100,000 or a prison term of up to two years or both. If there is a conviction on an indictment, the fine would be between $50,000 and $100,000 or a prison term of up to five years or both.
This may seem excessive to some, but when talking with business people in my riding of Calgary Northeast, which is of course the hardest-working riding in Canada, they will say that when some business people cheat the system, it creates an uneven playing field for everyone, especially those who choose to work hard and play by the rules. If we ask our business people to play by the rules and they do so, then we have a duty to protect their interests from those who would lie, cheat, and steal to get ahead.
Now I would like to talk about the hiring credit for small businesses in 2013, which brings me to another portion of our government's budget bill, Bill C-4.
In budget 2011, our government announced a temporary hiring credit for small businesses of up to $1,000 per employee. We did this under the realization that small businesses drive growth in our economy and provide substantial amounts of employment across Canada. In a time of global economic uncertainty, we know that supporting small businesses is essential. The hiring credit provides financial relief, offsetting the costs of hiring a new employee for a small business.
In 2012, we extended this hiring credit again. Now we remain in a time of economic uncertainty. Despite the fact that Canada's economy is on track and improving steadily, we have to remain vigilant about market forces outside our control. It is for that reason that we intend to extend the hiring credit for small businesses again this year.
Finally, I would like to talk about the temporary foreign worker program and how our Conservative government is streamlining the temporary foreign worker program.
Our changes involve giving the program the ability to electronically administer and enforce the temporary foreign worker program. This would include the use of electronic signatures, enabling secure online payment for the LMO process and eliminating the need to retain large amounts of paper.
I am personally pleased that we are taking this step. Streamlining the temporary foreign worker program would allow small and medium enterprises in Canada to hire workers more efficiently going forward. This is essential to our economy.
In closing, I call on members of the opposition parties to support Bill C-4 and implement this budget as quickly as possible. As I mentioned earlier, Canada's economy is on the right track. Let us support it.