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House Bill

Bill C-59

44th Parl. 1st Sess.
March 18, 2024
Fall Economic Statement Implementation Act, 2023
  • This bill, called the Fall Economic Statement Implementation Act, 2023, implements certain provisions of the fall economic statement and budget tabled in Parliament in 2023. It includes amendments to the Income Tax Act and other legislation, such as limiting the deductibility of net interest and financing expenses, implementing hybrid mismatch rules, allowing certain expenditures in the exploration and development of lithium to qualify as Canadian exploration expenses, and introducing various tax credits and exemptions. It also includes amendments related to digital services tax, Goods and Services Tax/Harmonized Sales Tax measures, excise tax measures, and other measures related to competition, bankruptcy and insolvency, money laundering, and more.
  • H1
  • H2
  • H3
  • S1
  • S2
  • S3
  • RA
  • Yea (178)
  • Nay (150)
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SteelmanSpren in Favour

  • One steelman argument in favor of Bill C-59 is that it implements necessary measures to address tax avoidance and ensure fairness in the tax system. The provisions in Part 1 of the bill, such as limiting the deductibility of net interest and financing expenses by certain corporations and trusts, and implementing hybrid mismatch rules, are consistent with international recommendations to combat base erosion and profit shifting. These measures aim to prevent multinational corporations from exploiting differences in tax laws between countries to reduce their tax liabilities. By implementing these measures, Canada is taking steps to ensure that corporations and trusts pay their fair share of taxes and contribute to the overall tax revenue of the country. This can help to create a more equitable tax system and ensure that all taxpayers are treated fairly.

SteelmanSpren Against

  • Opposing Argument: The Fall Economic Statement Implementation Act, 2023 and the provisions outlined in Bill C-59 represent an overreach of government power and interference in the economy. These measures, which include limiting the deductibility of net interest and financing expenses, implementing hybrid mismatch rules, and introducing new taxes on digital services, are detrimental to businesses and hinder economic growth. Firstly, limiting the deductibility of net interest and financing expenses by certain corporations and trusts is an unnecessary burden on businesses. This measure restricts the ability of businesses to deduct legitimate expenses, which ultimately increases their tax liability. It discourages investment and hampers economic growth by making it more expensive for businesses to finance their operations. Secondly, implementing hybrid mismatch rules based on international recommendations is an example of the government blindly following global organizations without considering the unique needs and circumstances of Canadian businesses. These rules are designed to combat cross-border tax avoidance, but they can have unintended consequences and create additional compliance burdens for businesses. It is important to prioritize the competitiveness and growth of Canadian businesses over international tax standards. Furthermore, the introduction of a digital services tax is a misguided attempt to generate revenue from the digital economy. This tax unfairly targets digital companies and could discourage innovation and investment in the sector. It also risks retaliation from other countries and could harm Canada's international competitiveness. Overall, these measures outlined in Bill C-59 represent an expansion of government control and interference in the economy. They impose unnecessary burdens on businesses, hinder economic growth, and fail to consider the unique needs and circumstances of Canadian businesses. A more free-market approach, with lower taxes and less government intervention, would be more beneficial for the economy and promote innovation and growth.

House Committee

44th Parl. 1st Sess.
April 18, 2024
Standing Committee on Finance (FINA)
Re. Committee Evidence - FINA-139
  • Thu Apr 18, 2024 03:34PM
  • Read
  • Hear!
  • Rabble!
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  • Hear!
  • Rabble!
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House Motion No. 659

44th Parl. 1st Sess.
March 18, 2024, 8 p.m.
2nd reading of Bill C-59, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023 (reasoned amendment)
  • Bill C-59
  • Latest: Second reading in the House of Commons
  • That the motion be amended by deleting all the words after the word “That” and substituting the following:

    “the House decline to give second reading to Bill C-59, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, since the bill fails to repeal the carbon tax on farmers, First Nations and families.”.

House Third Reading
  • March 18, 2024, 11 a.m.
  • In Progress
  • Read