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Minutes of Proceedings

42nd Parliament, 1st Session
Meeting No. 62
Monday, November 28, 2016, 3:29 p.m. to 6:53 p.m.
Presiding
Hon. Wayne Easter, Chair (Liberal)

House of Commons
• Olivier Champagne, Legislative Clerk
• Jean-Denis Kusion, Procedural Clerk
 
Library of Parliament
• June Dewetering, Analyst
• Hon. Bill Morneau, P.C., M.P., Minister of Finance
Department of Finance
• Andrew Marsland, Senior Assistant Deputy Minister, Tax Policy Branch
• Leah Anderson, Acting Assistant Deputy Minister, Financial Sector Policy Branch
Pursuant to the Order of Reference of Tuesday, November 15, 2016, the Committee resumed consideration of Bill C-29, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures.

The Minister made a statement and answered questions.

• Hon. Bill Morneau, P.C., M.P., Minister of Finance
Department of Finance
• Leah Anderson, Acting Assistant Deputy Minister, Financial Sector Policy Branch
• Andrew Marsland, Senior Assistant Deputy Minister, Tax Policy Branch
Pursuant to Standing Order 81(5), the Committee resumed consideration of the Supplementary Estimates (B) 2016-17: Votes 1b and 5b under Canada Revenue Agency, Votes 1b and 7b under Department of Finance and Vote 1b under Financial Transactions and Reports Analysis Centre of Canada, referred to the Committee on Thursday, November 3, 2016.

The Minister made a statement and answered questions.

The Chair called Votes 1b and 7b under Finance.

Votes 1b and 7b under Finance carried on division.

The Chair called Vote 1b under Financial Transactions and Reports Analysis Centre of Canada.

Vote 1b under Financial Transactions and Reports Analysis Centre of Canada carried on division.

ORDERED, — That the Chair report Votes 1b and 7b, under Finance and Vote 1b, under Financial Transactions and Reports Analysis Centre of Canada, in the Supplementary Estimates (B) 2016-17, to the House.

At 4:34 p.m., the sitting was suspended.

At 4:41 p.m., the sitting resumed.

It was agreed, — That the Committee proceed to the consideration of matters related to Committee business after the clause-by-clause consideration of Bill C-29, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other mesaures.

Department of Finance
• Glenn R. Campbell, Director, Financial Institutions, Financial Sector Policy Branch
• Eleanor Ryan, Senior Chief, Financial Institutions Division, Financial Sector Policy Branch
• Jean-François Girard, Chief, Financial Institutions Division, Financial Sector Policy Branch
• Trevor McGowan, Acting Chief, Tax Legislation Division, Tax Policy Branch
Pursuant to the Order of Reference of Tuesday, November 15, 2016, the Committee resumed consideration of Bill C-29, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures.

The Committee commenced its clause-by-clause study of the Bill.

Trevor McGowan answered questions.

Glenn R. Campbell, Jean-François Girard and Eleanor Ryan made statements and answered questions.

Pursuant to Standing Order 75(1), consideration of Clause 1 (Short Title), is postponed.

The Chair calls Clause 2.

By unanimous consent, Clauses 2 to 30 inclusive carried on division severally.

On Clause 31,

Pursuant to the order adopted by the Committee on Tuesday, May 10, 2016, the following amendment, submitted by Gabriel Ste-Marie for the consideration of the Committee, was deemed moved:

That Bill C-29, in Clause 31, be amended by replacing line 4 on page 40 with the following:

“31 (1) The definition taxable Canadian business in subsection 95(1) of the Act is replaced by the following:

taxable Canadian business, at any time, of a foreign affiliate of a taxpayer resident in Canada or of a partnership of which a foreign affiliate of a taxpayer resident in Canada is a member (which foreign affiliate or partnership is referred to in this definition as the “operator”), means a business

(a) the income from which

(i) is, or would be if there were income from the business for the operator’s taxation year or fiscal period that includes that time, included in computing the foreign affiliate’s taxable income earned in Canada for a taxation year under subparagraph 115(1)(a)(ii), and

(ii) is not, or would not be if there were income from the business for the operator’s taxation year or fiscal period that includes that time, exempt, because of a tax treaty with a country, from tax under this Part, or

(b) that is entitled to a special tax benefit conferred by Barbados under the Canada-Barbados Income Tax Agreement Act, 1980; (entreprise canadienne imposable)

(1.1) Clause 95(2)(d.1)(ii)(B) of the Act is re-”

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on pages 767-768 of House of Commons Procedure and Practice, Second Edition.

Clause 31 carried on division.

By unanimous consent, Clauses 32 to 42 inclusive carried on division severally.

On Clause 43,

Guy Caron moved, — That Bill C-29, in Clause 43, be amended by replacing line 5 on page 50 with the following:

“relation to a particular month is after 2015, the amount to”

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on pages 767-768 of House of Commons Procedure and Practice, Second Edition.

Clause 43 carried on division.

After debate, Clause 44 carried on the following recorded division:

YEAS: Guy Caron, Raj Grewal, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 6;

NAYS: Dan Albas, Gérard Deltell, Ron Liepert — 3.

By unanimous consent, Clauses 45 to 60 inclusive carried on division severally.

On Clause 61,

Guy Caron moved, — That Bill C-29, in Clause 61, be amended by replacing line 16 on page 90 with the following:

“dated group revenue of less than 60 million dollars during the”

Debate arose thereon.

The question was put on the amendment of Guy Caron and it was negatived, by a show of hands: YEAS: 1; NAYS: 8.

Clause 61 carried on division.

By unanimous consent, Clauses 62 to 116 inclusive carried on division severally.

On Clause 117,

Pursuant to the order adopted by the Committee on Tuesday, May 10, 2016, the following amendment, submitted by Gabriel Ste-Marie for the consideration of the Committee, was deemed moved:

That Bill C-29, in Clause 117, be amended by deleting line 22 on page 181 to line 2 on page 182.

After debate, the question was put on the amendment and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Clause 117 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 118 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 119 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 120 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 121 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 122 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 123 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 124 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 125 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 126 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 127 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 128 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 129 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 130 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

On Clause 131,

Pursuant to the order adopted by the Committee on Tuesday, May 10, 2016, the following amendment, submitted by Gabriel Ste-Marie for the consideration of the Committee, was deemed moved:

That Bill C-29, in Clause 131, be amended by deleting line 17 on page 187 to line 2 on page 188.

The question was put on the amendment and it was negatived, by a show of hands: YEAS: 4; NAYS: 5.

Jennifer O'Connell moved, — That Bill C-29, in Clause 131, be amended

(a) by replacing, in the French version, line 5 on page 207 with the following:

“nir les fonds déposés par chèque ou au”

(b) by replacing line 25 on page 207 with the following:

“(b) referred to in clause 627.49(1)(a)(ii)(B) or (C) to”

Debate arose thereon.

The question was put on the amendment of Jennifer O'Connell and it was agreed to, by a show of hands: YEAS: 7; NAYS: 0.

Clause 131, as amended, carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 132 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 133 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 134 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

Clause 135 carried on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Dan Albas, Guy Caron, Gérard Deltell, Ron Liepert — 4.

By unanimous consent, Clauses 136 to 145 inclusive carried on division severally.

Clause 1, Short Title, carried on division.

The Title carried on division.

The Bill, as amended, carried on division.

ORDERED, — That the Chair report the Bill, as amended, to the House.

ORDERED, — That Bill C-29, as amended, be reprinted for the use of the House at report stage.

The Committee proceeded to the consideration of matters related to Committee business.

Motion

Steven MacKinnon moved, — That, with respect to Bill S-4 An Act to implement a Convention and an Arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and to amend an Act in respect of a similar Agreement:

a) The Committee begin a subject matter study of the Bill on Monday, December 5, 2016, if the Bill itself has not yet been referred to the Committee;

b) The Committee invite departmental officials to appear for one hour on Monday, December 5, 2016, from 3:30 p.m. to 4:30 p.m., and invite witnesses to appear on Monday, December 5, 2016, from 4:30 p.m. to 6:30 p.m.; and on Tuesday, December 6, 2016, from 3:30pm to 5:30 pm, if needed;

c) Members of the Committee submit their prioritized witness lists to the Clerk of the Committee no later than noon on Tuesday, November 29, 2016;

d) If Bill S-4 is referred to the Committee by the House during the subject matter study, all evidence and documentation received in public in relation to its subject matter study of Bill S-4 be deemed received by the Committee in the context of its legislative study of Bill S-4;

e) Members of the Committee as well as Members who are not a member of a caucus represented on the Committee and independent members should submit their proposed amendments to the Clerk of the Committee no later than Thursday, December 8, 2016 at 5:00 p.m;

f) The Committee proceed with the clause-by-clause consideration of Bill S-4 no later than Monday, December 12, 2016 (subject to the Bill being referred to the Committee);

g) The Chair may limit debate on each clause to a maximum of five minutes per party, per clause;

h) If the Committee has not completed clause-by-clause consideration of Bill S-4 by 9:00 p.m. on Monday, December 12, 2016, all remaining amendments submitted to the Committee shall be deemed moved, the Chair shall put every question, forthwith and successively, without further debate or amendment on all remaining clauses and amendments submitted to the Committee, as well as each and every question necessary to dispose of clause-by-clause consideration of the Bill, as well as all questions necessary to report the Bill to the House and to order the Chair to report the Bill to the House no later than Tuesday, December 13, 2016;

i) the Clerk of the Committee write immediately to each Member who is not a member of a caucus represented on the Committee and any independent members to inform them that the Committee will begin the subject matter study of the Bill and to invite them to prepare and submit any proposed amendments, which they would suggest that the Committee consider during the clause by clause study of the Bill.

The Clerk should also outline all of the parameters and deadlines mentioned in paragraphs a) to i) of this motion.

Amendment

Guy Caron moved, — That the motion be amended by replacing the words "Tuesday, November 29, 2016" at item c) with the words "Wednesday, November 30, 2016”.

The question was put on the amendment of Guy Caron and it was agreed to, by a show of hands: YEAS: 6; NAYS: 2.

The question was put on the motion, as amended, and it was agreed to, by a show of hands: YEAS: 5; NAYS: 4 and now item c) reads as follows — c) Members of the Committee submit their prioritized witness lists to the Clerk of the Committee no later than noon on Wednesday, November 30, 2016;

Motion

Jennifer O'Connell moved, — That the Finance Committee make a report to the House, no later than December 2, 2016, recommending that the Government raise the issue of child rearing and disability drop out provisions at the next Provincial and Territorial Finance Ministers meeting, in the context of the Triennial review of the Canada Pension Plan.

Debate arose thereon.

The question was put on the motion and it was agreed to on the following recorded division:

YEAS: Iqra Khalid, Steven MacKinnon, Jennifer O'Connell, Robert-Falcon Ouellette, Francesco Sorbara — 5;

NAYS: Guy Caron — 1.

At 6:53 p.m., the Committee adjourned to the call of the Chair.



Suzie Cadieux
Clerk of the Committee