SoVote

Bill C-239

44th Parl. 1st Sess.

April 19, 2023

Bill C-239 is an amendment to an existing Act that allows the Minister of Finance to enter into agreements with provincial governments. These agreements would allow the government of a province to collect federal personal and corporation income taxes on behalf of the Government of Canada. This would streamline the tax filing process for residents of Quebec, who currently have to submit separate federal and provincial tax returns. The Minister of Finance is also required to have discussions with the Government of Quebec to enter into such an agreement. The bill also includes provisions for employment protection and ensuring access to necessary tax information.

Steelman Argument: Bill C-239 proposes to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces in order to allow the Minister of Finance to enter into an agreement with the government of a province, specifically Quebec, to collect federal personal and corporation income taxes on behalf of the Government of Canada. This amendment addresses a longstanding issue faced by residents of Quebec, who are currently required to submit both a federal tax return and a provincial tax return. The Government of Quebec, as well as the National Assembly, have expressed their desire to streamline the process and allow residents to submit a single tax return. By allowing the government of Quebec to collect federal taxes, this amendment would simplify the tax process for Quebec residents and reduce the administrative burden on both taxpayers and the Canada

One potential steelman argument opposing Bill C-239 is that it risks undermining the integrity and uniformity of the Canadian tax system. By allowing Quebec to collect federal income taxes on behalf of the Government of Canada, it sets a precedent that other provinces may also seek to collect their own federal taxes in the future. This could lead to a fragmented tax system with different provinces having different tax collection agreements, which could create confusion and complexity for individuals and businesses operating across provincial boundaries. It may also create disparities in tax collection capabilities and resources between provinces, potentially leading to inequitable outcomes. Additionally, if multiple provinces start collecting federal taxes, it could lead to duplication of administrative functions and increased costs for the federal government. Ultimately, this arrangement may compromise the effectiveness and efficiency