Tony Van Bynen

[Health, December 9th, 2020]

Mr. Speaker, the opposition has said that Canada is at the back of the line for vaccines. A member of the party opposite is even sponsoring a petition questioning the safety and the effectiveness of vaccines, and the Leader of the Opposition refuses to denounce his comments. Earlier this morning, they were proved wrong.

Can the Prime Minister please update the House on the government's plan to get Canadians a vaccine for COVID-19?

[Newmarket Business Excellence Awards, December 4th, 2020]

Mr. Speaker, last week, the Newmarket Chamber of Commerce held its 31st annual Business Excellence Awards to recognize the many achievements and the important contributions that small businesses have made to our community. This year, they have shown exceptional resilience by adapting to these new times while continuing to support generously those who are in need.

Today, I would like to congratulate all of the nominees and of course this year's winners: Nature's Emporium, the Red Thread Brewing Company, the Best Western Voyageur Place Hotel, NewMakeIt, Benson Kearley IFG, CPG Aerospace, Optimum Pharmacy, Abuse Hurts, Eyes on Stonehaven, RC Design and Needham Promotions.

Small businesses are the backbone of our local economy, but to that I will add they are the heart of our communities. Once again, congratulations to all.

[Income Tax Act, November 25th, 2020]

Madam Speaker, I grew up on a small 50-acre farm and, in spite of having 11 labour-cost-free children, my father still required off-the-farm income because he realized it was not easy to feed 11 children with what we could produce on the farm.

I am pleased to take part in the debate today on private member's bill, Bill C-208, which aims to facilitate the transfer of family businesses between family members.

Ensuring the sustainability of small businesses, family farms and fishing corporations is essential to our economy and to the communities that they serve. This has been underscored by the critical need to support families and communities as we continue to fight COVID-19. Our government understands this. From the outset of the pandemic, Canada's economic response to COVID-19 has introduced a range of support measures for small businesses to help bridge them to the other side.

Simply put, we have their backs. That extends to helping family businesses thrive for generations to come.

Encouraging the sale of family businesses to family members often means those businesses will remain in, and continue to benefit, their communities as well as the families that fought hard, sacrificed and succeeded through pure determination and entrepreneurial spirit. It is with this spirit in mind that Bill C-208 bears careful consideration.

Bill C-208 seeks to amend two of the Income Tax Act's most important and complex anti-avoidance rules. These rules deal with inter-corporate dividends, share sales and circumstances under which the lifetime capital gains exemption is charged. Any relieving changes to these sections of the act must be done cautiously, following rigorous study and debate, to avoid unintentionally creating loopholes that would disproportionately benefit the wealthy instead of protecting the middle class and those working hard to join it.

Section 84.1 of the act, in particular, is in place to apply an anti-avoidance rule where, when appropriate, an individual sells shares of one corporation to another corporation that is linked to an individual, such as a family member. When an individual sells shares of a Canadian corporation to a linked corporation, section 84.1 of the act deems, in certain circumstances, that the individual has received a taxable dividend from the linked corporation rather than a capital gain. This prevents the individual from realizing the proceeds of the sale on a tax-free basis using the lifetime capital gains exemption.

This rule is meant to ensure that taxpayers cannot use linked corporations to, in effect, remove earnings from their corporations, using a sale as a basis to do so. Without this rule, such sales between related parties could be used to convert what should be dividends to an individual shareholder into capital gains that are tax free under the lifetime capital gains exemption.

Bill C-208 proposes narrowing the scope of section 84.1 by removing the sale of shares of small businesses, family farms or fishing corporations from its application, when they are being sold by an individual to another corporation that is owned by their adult child or their grandchild. This change would allow the owner-operator of a family business to convert dividends to the corporation into a tax-free capital gain.

It is important to note that there is currently nothing in the act stopping a parent from selling the shares of a family business directly to their child or grandchild on a tax-free basis using the lifetime capital gains exemption, which currently shelters up to $1 million in capital gains on qualified farm and fishing properties. The issues sought to be addressed by Bill C-208 arise only in multi-tier corporate structures, where one corporation owns a second corporation. Adopting the proposed changes to section 84.1 could open the door to new tax-avoidance opportunities.

Bill C-208 also proposes amendments to section 55 of the act, which generally applies to corporations that seek to inappropriately reduce capital gains by paying excessive tax-free dividends between corporations, which the act considers to be a capital gain.

Two exemptions to these anti-avoidance rules authorize businesses that are restructuring to allow company shareholders to split company shares between them while deferring taxes. The first exemption applies to the restructuring of related corporations and the second applies to all corporate restructuring.

Bill C-208 would broaden the first exemption so that it applies to brothers and sisters, despite long-standing tax policy that considers brothers and sisters to have separate and independent economic interests for these purposes. Any change to this exemption would risk eroding our tax base.

Spouses, as well as parents and their children, are already eligible for this exemption, because it is presumed that they have shared economic interests. Although brothers and sisters cannot restructure their participation in a corporation on a tax-deferred basis under the related corporations exemption, they can do it under the second exemption of section 55, which applies to all corporate restructurings.

This is called the butterfly exemption, and there are few tax avoidance opportunities under it. If the proposed amendments under section 55 included in Bill C-208 were passed, siblings could undertake business restructurings in which otherwise taxable capital gains realized between corporations would be converted into tax-free intercorporate dividends, which would create new opportunities for tax avoidance in Canada.

I will conclude by saying that we know many businesses are continuing to face stress and uncertainty due to COVID-19. Our government has stepped up to the plate to make sure that they have the support during these unprecedented times.

We have made unprecedented support available to Canadian businesses, including the Canadian emergency business account, which has provided 758,000 business loans totalling $30 billion. The Canada emergency wage subsidy has supported the wages of more than 3.5 million employees totalling $36.7 billion.

Just this week applications were opened for the new Canada emergency rent subsidy, which will provide simple and easy-to-access commercial rent support and an additional lockdown support of 25% for businesses that have temporarily shut down due to mandatory public orders. Combined, this will mean the hard-hit businesses subject to lockdown will receive rent support up to 90%.

Our message to businesses remains the same. We have their back.

There are important considerations to take into account when we are reviewing the merits of Bill C-208. Our government remains committed to working with family businesses, including farming and fishing businesses, to make it efficient, or less difficult, to hand down their businesses to a next generation. However, we must exercise caution when making amendments to the Income Tax Act.

[Citizenship Act, November 23rd, 2020]

Mr. Speaker, I am not sure there is a question, but if the statement is that we should be committed to and go forward with the commitments from the Crown to indigenous peoples, I fully agree with him.

[Citizenship Act, November 23rd, 2020]

Mr. Speaker, to the extent it is possible, I think that is a great recommendation. My daughter teaches in an Ontario school and has actively engaged in many of those experiences. I went through the Canadian citizenship oath with my parents, with 11 kids in tow, and I know how important that ceremony is.

To the extent we are able to do that, it is a great recommendation, and I thank the member for his suggestion.

[Citizenship Act, November 23rd, 2020]

Mr. Speaker, I do not believe these things need to be mutually exclusive. Both initiatives are important, so we should be moving forward on the UNDRIP commitments as well. I agree with the member.

[Citizenship Act, November 23rd, 2020]

Mr. Speaker, the member's question reminds me of something my father always reminded me to do: Act in haste and repent at leisure. This reconciliation needs to have a process that engages all parties, so it is important that we carefully consider the perspectives of the individuals we are working with and build on a partnership that everybody supports. That, unfortunately, does take time. There are a lot of things we would like to go forward with far more quickly, which we heard about earlier, but we need to be very careful that we engage all parties, are sensitive to what is important to them and try to build a collaboration that is long-lasting and not fraught with peril and conflict in the future.

[Citizenship Act, November 23rd, 2020]

Mr. Speaker, I would like to acknowledge that the House of Commons, where this debate is based today, sits on the ancestral lands of the Algonquin Anishinabe.

As my hon. colleagues have noted, indigenous peoples have played a fundamental role in Canada's past and continue to do so today. Canada must continue to stand up for the values that define this country, whether it is in welcoming newcomers, celebrating with pride the contributions of the LGBTQ2 communities or embracing two official languages.

To walk the road of reconciliation, there is still much work to be done, such as the need to address systemic racism and its impact on all communities, including indigenous communities. However, as we have indicated, Canada is firmly committed to implementing the Truth and Reconciliation Commission's calls to action. The Government of Canada has made significant efforts to implement the calls to action, and these proposed changes regarding the oath of citizenship demonstrate our firm commitment to achieving this goal.

Our goal is to renew the relationship between the Crown and indigenous peoples. To move forward together, we need to be true partners in this Confederation. Advancing reconciliation remains a Canadian imperative, and it will take partners at all levels to make real progress. We know there is more to do, and we will continue to work together.

One of the most important ways we demonstrate this support is to highlight it at citizenship ceremonies throughout this country, whether they are the virtual ceremonies that have taken place in recent months or the traditional in-person events. Recognizing the role that indigenous peoples have played in this country is a fundamental part of our citizenship ceremony.

To this end, at our in-person ceremonies, judges and those presiding over the ceremonies have traditionally acknowledged the indigenous territory on which the ceremony takes place, and also speak of the history of indigenous peoples in Canada in their welcome remarks to new Canadians. The stories of first nations, Inuit and Métis peoples are the stories of Canada itself, and indigenous peoples will continue to play a critical role in Canada's development as we go forward.

During these ceremonies, participants accept the rights and responsibilities of citizenship by taking the oath of citizenship. The oath of citizenship is a public declaration that someone is joining the Canadian family and is committed to Canadian values and traditions.

For this declaration to be truthful and inclusive, it must include the recognition of indigenous peoples in Canada. Bill C-8, an act to amend the Citizenship Act (Truth and Reconciliation Commission of Canada's call to action number 94), proposes to change Canada's oath of citizenship to recognize and affirm the aboriginal and treaty rights of first nations, Inuit and Métis peoples, as referenced in the Constitution.

The proposed amendment to the oath demonstrates the Canadian government's commitment to responding to the calls to action of the Truth and Reconciliation Commission. It also signals a renewed relationship with indigenous peoples based on the recognition of rights, respect, co-operation and partnership.

Reconciliation is an important thing to all people in Canada. The proposed changes to the oath would help advance reconciliation with indigenous peoples in Canada. This would demonstrate support for the diversity that people of all origins contribute to Canada and our country's history, fabric and identity.

[Broadcasting Act, November 19th, 2020]

Mr. Speaker, the member raised some really good points. That is why it is important for us to get into committee, to hear that type of input so that we can build a better bill. The minister has said that he would welcome the other perspectives, we would welcome amendments and we would welcome collaboration so that we can move forward into the 20th century.

[Broadcasting Act, November 19th, 2020]

Mr. Speaker, what we are doing is trying to move this bill forward. There is an opportunity, when this bill goes to committee, to listen to the suggestions that we have here. I am all for collaboration. I would like to see us have the benefit of the member's perspective, but let us do that in committee and let us implement that as we move the bill forward. We want to go ahead. All we need is to have the vote to take it to committee and start getting to work on this. Let us work together on it.