C-9 , 40th Parliament, 3rd session Wednesday, March 3, 2010, to Saturday, March 26, 2011

The Library of Parliament does not prepare Legislative Summaries for budget implementation bills. The following is a short summary:

On 29 March 2010, the Minister of Finance introduced Bill C-9, An Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures, in the House of Commons and it was given first reading.

Part 1 implements income tax measures proposed in the March 4, 2010 Budget. Among other things, it

• introduces amendments to the Universal Child Care Benefit Act;
• amends rules relating to payments made to a Registered Education Savings Plan or a Registered Disability Savings Plan
• implements amendments to the family income thresholds used to determine eligibility for Canada Education Savings Grants, Canada Disability Savings Grants and Canada Disability Savings Bonds;
• reinstates the 50% inclusion rate for Canadian residents who have been in receipt of U.S. social security benefits since before January 1, 1996;
• extends the mineral exploration tax credit for one year;
• reduces the rate of interest payable by the Minister of National Revenue on tax overpayments made by corporations;
• modifies the definition “taxable Canadian property”
• amends Part I of the Income Tax Act the respect to the issuance of a refund of an overpayment of tax
• repeals the exclusion for indictable tax offences from the proceeds of crime and money laundering regime;
• increases the pension surplus threshold for employer contributions to registered pension plans to 25%.
• amends the Medical Expense Tax Credit to exclude expenses for purely cosmetic procedures


Part 2 amends the Excise Act, 2001 and the Customs Act to implement a stamping regime for tobacco products which introduces new controls over the production, distribution and possession of a new excise stamp for tobacco products.

Part 2 also amends the Excise Tax Act and certain related regulations in respect of the Goods and Services Tax/Harmonized Sales Tax (GST/HST). Among other things it:

• implements a commission-based model to the direct selling industry;
• prescribes the application of the GST/HST to purely cosmetic procedures
• provides a definition of “financial service” in respect of certain administrative, management and promotional services;
• prescribes the application of the input tax credit rules to financial institutions;
• provide a new, uniform GST/HST rebate system for employer-sponsored pension plans
• extends the due date for filing annual GST/HST returns from three months to six months after year-end for certain financial institutions.

In addition, Part 2 amends regulations made under the Excise Tax Act and the Excise Act, 2001 to reduce the interest rate payable by the Minister of National Revenue in respect of overpaid taxes and duties by corporations.

Part 3 amends certain provisions of the Air Travellers Security Charge Act to increase the air travellers security charge where applicable.

Part 4 amends the Softwood Lumber Products Export Charge Act, 2006 to provide for a higher rate of charge on the export of certain softwood lumber products from the regions specified in the bill.

Part 5 amends the Customs Tariff to reduce Most-Favoured-Nation rates of duty and certain other tariffs.

Part 6 amends the Federal-Provincial Fiscal Arrangements Act to provide additional payments to certain provinces and to correct a cross-reference in that Act.

Part 7 amends the Expenditure Restraint Act to impose a freeze on the allowances and salaries to be paid to members of the Senate and the House of Commons for the 2010–2011, 2011–2012 and 2012–2013 fiscal years.

Part 8 amends a number of Acts to reduce or eliminate Governor in Council appointments, including the North American Free Trade Agreement Implementation Act. In addition, this Part repeals The Intercolonial and Prince Edward Island Railways Employees’ Provident Fund Act.

Part 9 amends the Pension Benefits Standards Act, 1985. Among other things it

• requires an employer to fully fund benefits if the whole of a pension plan is terminated;
• authorizes an employer to use a letter of credit, if certain conditions are met, to satisfy solvency funding obligations in respect of a pension plan that has not been terminated in whole;
• permits a pension plan to provide for variable benefits;
• establishes a distressed pension plan workout scheme, under which the employer and representatives of members and retirees may negotiate changes to the plan’s funding requirements, subject to the approval of the Minister of Finance;
• provides that only the Superintendent may declare a pension plan to be partially terminated;
• provides for the immediate vesting of members’ benefits;

Part 10 provides for the retroactive coming into force in Canada of the Agreement on Social Security between Canada and the Republic of Poland.

Part 11 amends the Export Development Act to grant Export Development Canada the authority to establish offices outside Canada. It also clarifies that Corporation’s authority with respect to asset management and the forgiveness of certain debts and obligations.

Part 12 enacts the Payment Card Networks Act to regulate national payment card networks and the commercial practices of payment card network operators. Among other things, that Act confers a number of regulation-making powers. This Part also makes related amendments to the Financial Consumer Agency of Canada Act to expand the mandate of the Agency so that it may supervise payment card network operators.

Part 13 amends the Financial Consumer Agency of Canada Act to provide the Financial Consumer Agency of Canada with a broader oversight role. The amendments also increase the Agency’s ability to undertake research on trends and emerging issues.

Part 14 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to confer on the Minister of Finance the power to issue directives imposing measures with respect to certain financial transactions. The amendments also confer on the Governor in Council the power to make regulations that limit or prohibit certain financial transactions.

Part 15 amends the Canada Post Corporation Act to modify the exclusive privilege of the Canada Post Corporation so as to permit letter exporters to collect letters in Canada for transmittal and delivery outside Canada.

Part 16 amends the Canada Deposit Insurance Corporation Act to allow the Governor in Council to specify when a bridge institution will assume a federal member institution’s deposit liabilities and to allow the Canada Deposit Insurance Corporation to make certain by-laws. This Part also amends that Act to establish the rules that apply to the assignment, by the Canada Deposit Insurance Corporation to a bridge institution, of eligible financial contracts to which a federal member institution is a party.

Part 17 amends the Bank Act and other related statutes to provide a framework enabling credit unions to incorporate and continue as banks.

Part 18 authorizes the taking of a number of measures with respect to the reorganization and divestiture of all or any part of Atomic Energy of Canada Limited’s business.

Part 19 amends the National Energy Board Act in order to give the National Energy Board the power to create a participant funding program. It also amends the Nuclear Safety and Control Act to give the Canadian Nuclear Safety Commission the power to create a participant funding program and the power to prescribe fees for that program.

Part 20 amends the Canadian Environmental Assessment Act in respect to the requirements process for comprehensive studies, to give the Canadian Environmental Assessment Agency authority to conduct most comprehensive studies and to give the Minister of the Environment the power to establish the scope of any project which involves an environmental assessment. It also amends that Act to provide, in legislation rather than by regulations, that an environmental assessment is not required for certain federally funded infrastructure projects.

Part 21 amends the Canada Labour Code with respect to the appointment of appeals officers and the appeal hearing procedures.

Part 22 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes.

Part 23 amends the Telecommunications Act to make a carrier that is not a Canadian-owned and controlled corporation eligible to operate as a telecommunications common carrier if it owns or operates certain transmission facilities.

Part 24 amends the Employment Insurance Act to establish an account to be known as the Employment Insurance Operating Account and to close the Employment Insurance Account and remove it from the accounts of Canada.