We have previously and on numerous occasions, written in this blog space regarding Provincial and Federal legislation, directed at economic reforms, housing supply and affordability issues, and regulation of the financial services sector. Federal Budget 2022, released on April 7, 2022, addressed certain specific measures, affecting each of these issues.
Accordingly, Canada’s government has tabled Bill C-19, proposing to implement certain provisions of that budget. Bill-19 includes an outright ban on foreign investment in Canadian housing for the next two years, as well as the luxury tax on the sale of new luxury cars and aircraft. It also allows the government to seize and cause the forfeiture and disposal of assets held by sanctioned people and entities. The Bill also takes the first steps towards implementation of a publicly accessible beneficial ownership registry of federally incorporated corporations. At the same time, the previously announced changes to federal anti-money laundering regulations have been gazetted and are now in force with immediate effect.
Key measures in Bill C-19 include:
- A two-year ban on foreign investment in Canadian housing.
- The introduction of a luxury tax on the sale of new luxury cars and aircraft with a retail sale price over $100,000, and on new boats or yachts over $250,000.
- Allowing the government to seize and cause the forfeiture and disposal of assets held by sanctioned people and entities, to support Canada’s participation in the Russian Elites, Proxies, and Oligarchs Task force in light of Russia’s illegal invasion of Ukraine.
- A Labour Mobility Deduction for Tradespeople to provide tax relief on eligible travel and temporary relocation expenses as part of an effort to reduce labour shortages.
- Helping to tackle the speculative trading that contributes to higher housing prices by making all assignment sales in respect of newly constructed or substantially renovated residential housing taxable for GST/HST purposes.
- Supporting provinces and territories in continuing to address health system concerns, including by tackling the pandemic-induced backlog of surgeries and procedures, by providing provinces and territories with a $2 billion top-up to the Canada Health Transfer.
- Implementing 10 days of paid medical leave for workers in the federally regulated private sector by no later than December 1, 2022.
- Doubling the maximum amount of the Home Accessibility Tax Credit to $20,000 to help seniors and persons with disabilities make home improvements that would allow them to continue living safely in their own home.
- Taking the first steps towards the implementation of a publicly accessible beneficial ownership registry of federally incorporated corporations to help counter illegal activities, including money laundering, corruption, and tax evasion.
- Strengthening the government’s ability to select permanent resident applicants from the Express Entry System that match Canada’s economic and labour force needs.
- Implementing changes to the delivery of Climate Action Incentive payments by moving from an annual refundable tax credit to quarterly payments starting in July 2022.
- Reducing by half the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies, and expanding an existing tax incentive for business investments in clean energy equipment.
- Leveraging transit funding to build more homes by providing provinces and territories with up to $750 million to address pandemic-driven municipal and other transit shortfalls, and by tying that funding to efforts to improve housing supply and affordability.
- Allowing charities to provide resources to other non-profits, in furtherance of their charitable purposes, and ensuring that Canada’s tax rules minimize their administrative burdens and support stronger partnerships in the charitable sector, by implementing the spirit of Bill S-216, the Effective and Accountable Charities Act.
If you have any questions or would like advice related to the matters set out in this post, or if you have questions in relation to matters of real estate, business law, intellectual property and trust and estate matters, please contact us at 604-688-4900 or by email to Paul Barbeau at email@example.com or to Morgan Best at firstname.lastname@example.org