Any substantive changes in this Library of Parliament Legislative Summary that have been made since the preceding issue are indicated in bold print.
Bill C-8, An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures (short title: Economic and Fiscal Update Implementation Act, 2021),1 was introduced in the House of Commons on 15 December 2021 by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance. The bill was passed by both chambers of Parliament with amendments by the House of Commons Standing Committee on Finance, and it received Royal Assent on 9 June 2022.
Bill C-8 implements some of the measures that were announced in the federal government’s Economic and Fiscal Update 2021, which was released on 14 December 2021.2
The bill consists of the following seven parts:
Clause 6(1) adds new section 127.43 to the ITA to introduce a new temporary tax credit for businesses, the COVID-19 Air Quality Improvement Tax Credit for taxation years ending after 2021. This credit is meant to make it more affordable for businesses to invest in better ventilation and air filtration.6 It is available to businesses that are eligible entities that have incurred ventilation expenses with regard to a qualifying location in the course of their ordinary commercial activities.
An eligible entity includes an individual who is an unincorporated sole proprietor, a corporation, a cooperative and a partnership, but it excludes a trust.7 Additional rules apply to corporations and partnerships.
For a cooperative or a corporation to be considered an eligible entity, the two conditions of a “qualifying corporation” must be met, namely:
“Ventilation expenses” means outlays or expenses incurred during the period that begins on 1 September 2021 and ends on 31 December 2022 and that are either
The terms “HVAC” and “HEPA” are both defined, among other technical terms, in the regulations introduced into new section 9700 of the ITR by clause 9(1).
As well, if an eligible entity received “any government assistance”13 (other than under this new section) with respect to its ventilation expenses, such assistance must be deducted.
A “qualifying location” means real or immovable property in Canada used by the eligible entity primarily in the course of its ordinary commercial activities. It thus excludes a self-contained domestic establishment, such as a place of residence,14 and the land subjacent to it.
Because ventilation expenses are capped at $10,000 per qualifying location and at $50,000 cumulatively for all qualifying locations of an eligible entity (the limits),15 the maximum amount that an eligible entity can use to calculate the credit for a taxation year is the lesser of its ventilation expenses for that taxation year and the amount left with regard to the limits, once ventilation expenses in respect of which an amount was claimed under this credit for a prior taxation year have been deducted.
For all eligible entities excluding partnerships, the credit is equal to 25% of the maximum amount.
As for partnerships, only the members of a partnership may claim the credit provided they are an eligible entity themselves, other than a partnership.16 Each member may claim a credit equal to 25% of the maximum amount multiplied by their “specified proportion” in the partnership.17
In cases of multi-tiered partnership structures, an eligible entity is deemed to have a specified proportion in the second partnership that is equal to their specified proportion in the first partnership, multiplied by the first partnership’s specified proportion in the second partnership.
To claim the credit, eligible entities (other than partnerships), and members of a partnership, if applicable, must file a prescribed form with a return of income for the taxation year. Partnerships must also file an information return in a prescribed form.
Additionally, any amount claimed under this credit is considered assistance received from a government immediately before the end of the taxation year to which it relates, thus making it taxable for the eligible entity or the member of a partnership claiming it.
The credit is treated as an amount paid on account of the tax payable by the eligible entity (other than a partnership) or member of a partnership for the taxation year for the purposes of the ITA, which has the effect of making it a refundable tax credit.
Clause 2(1) amends section 87(2) of the ITA, which sets out rules in cases of an amalgamation, to provide that an amalgamated corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation for the purposes of the credit. This prevents an amalgamated corporation from reinitializing the limits as a result of the amalgamation.
All these changes are deemed to have come into force on 1 September 2021, pursuant to clauses 2(2), 6(2) and 9(2).
The northern residents deduction is divided into two components: the residency component and the travel component. The travel component is meant “[t]o reduce travel costs for northerners”18 by allowing certain individuals living in prescribed northern areas of Canada to deduct, in the computation of their income for the year, certain amounts in relation certain trips taken for personal and medical reasons.
The changes proposed by Bill C-8 address the travel component by extending it with a view to “giving all northern residents the option to claim up to $1,200 in eligible travel expenses,”19 even in the absence of travel assistance from their employer.
Clause 3(1) replaces section 110.7(1)(a) of the ITA and introduces a new formula to calculate the travel component of the northern residents deduction (the deduction), based on the taxpayer’s total trip cost multiplied by the specified percentage for the northern area where the taxpayer resided, which remains the same as in the previous version of this section.
The term “trip cost” is introduced into the ITA by clause 3(3), which also introduces three other definitions through new section 110.7(6).
“Trip cost” has the meaning prescribed by regulation. Clause 7(1) amends the definition of trip cost by replacing paragraphs (a) and (b) of section 7304(2) of the ITR, namely to introduce the term “employer-provided travel benefits.” Trip cost can be summarized as the lesser of:
in respect of a trip made by an individual who is the taxpayer or an “eligible family member” (an individual).20 Clause 3(2) amends section 110.7(3) of the ITA, namely, to prevent taxpayers living in the same household from collectively claiming deductions in relation to more than two non-medical personal trips taken by the same individual.21
The term “employer-provided travel benefits” means the total of all amounts representing
in respect of the taxpayer’s employment and in respect of travel expenses for a trip made by the taxpayer or their eligible family member.
The term “eligible family member” includes the following members of the taxpayer’s household:
The expansion of the travel component is brought about by clause 7(2), which replaces section 7304(3) of the ITR. It introduces a deeming provision that allows a taxpayer to calculate their trip cost using only the travel assistance received by the taxpayer as part of the employer-provided travel benefits and their travel expenses or those of their spouse or common-law partner when they do not claim an amount of employer provided travel benefits for the trip. In this case, by introducing new section 110.7(3.2) into the ITA, clause 3(2) limits the total deduction, for all taxpayers in relation to the same individual, to an amount equal to the “standard amount,” which is $1,200 for the year (clause 3(3)).
Another deeming provision is introduced by clause 3(2), which adds section 110.7(3.3) to the ITA to ensure that when a “taxpayer claims a deduction in respect of an employer-provided benefit for travel … in a year, no other taxpayer [is] allowed to also claim all or part of the $1,200 standard amount in respect”27 of travel by the same individual, as in this case, the standard amount is deemed to be zero for that individual.
Additionally, clause 3(2) introduces section 110.7(3.1) to the ITA, namely to restrict amounts that would otherwise qualify as a trip cost to amounts that have not been deducted in computing the income for any taxation year of any individual, except by an employer. This prevents multiple taxpayers from claiming the same deduction. Other restrictions provided under new section 110.7(3.1) of the ITA existed under former section 110.7(1)(a) of the ITA and have been adjusted to reflect the changes made by Bill C-8.
Clause 7(2) replaces section 7304(4) of the ITR to introduce a deeming provision that has the effect of preventing a taxpayer from claiming an amount of employer-provided travel benefits received from an employer with whom they are not dealing at arm’s length.28 In this case, a taxpayer may be able to claim their travel expenses, subject to the other conditions discussed.
Under clauses 3(4) and 7(3) of the bill, these changes apply to the 2021 and subsequent taxation years.
Clauses 4(1) and 8(1) expand the definition of “eligible supplies expense” provided under section 122.9(1) of the ITA, by removing the requirement that the teaching supplies purchased by the eligible educator be “directly consumed or used in an elementary or secondary school or in a regulated child care facility” and by adding electronic devices, such as web cams, microphones, headphones, electronic educational toys, speakers, video streaming devices and certain laptops, desktops and tablet computers, to the list of teaching supplies that are “prescribed durable goods” provided under section 9600 of the ITR.
These changes are meant “to ensure that purchased supplies may be eligible no matter where they are used,”29 including in an online classroom, even “outside the context of the COVID-19 pandemic”30 and “[i]n recognition of evolving approaches and increasing use of technologies in education.”31
Clause 4(2) amends section 122.9(2) of the ITA by increasing the tax credit rate from 15% to 25%.
Under clauses 4(3) and 8(2), these amendments apply to the 2021 and subsequent taxation years.
Clause 5(1) adds new section 127.42 to the ITA to introduce a new tax credit which aims “to return fuel charge proceeds directly to farming businesses in backstop jurisdictions via a refundable tax credit, starting for the 2021–22 fuel charge year,”32 recognizing that “many farmers use natural gas and propane in their operations.”33 Eligible taxpayers include corporations, individuals, trusts and partnerships.
The credit is available to taxpayers who have incurred eligible farming expenses in a designated province for a taxation year.
The term “eligible farming expenses” means an amount equal to the proportion, represented by a taxpayer’s income for the taxation year from farming activities deemed to have been earned in a designated province,34 of their total income from farming activities for that year, multiplied by the taxpayer’s expenses for the taxation year related to farming activities which must be equal to or exceed $25,000. Some expenses are excluded.35
A special rule applies when income for the taxation year from farming activities of an individual or partnership, or of a corporation, is zero. In these cases, the portion of the taxpayer’s income for the taxation year from farming activities deemed to have been earned in the designated province is computed as if the individual or partnership earned, or the corporation had taxable income in the amount of $1 million from farming activities.
“Farming activities” means a farming business.36
“Designated province” means a province specified by the minister of Finance for a calendar year.
For all taxpayers excluding partnerships, the credit is equal to the “payment rate,” which is defined as the rate specified by the minister of Finance for the calendar year for the designated province, multiplied by the taxpayer’s eligible farming expenses for the taxation year. The credit applies on a prorated basis “[w]here taxation years do not align with the calendar year.”37
The payment rates are $1.47 and $1.73 per $1,000 in eligible farming expenses incurred in the 2021 and 2022 calendar years, respectively.38 For calendar years after 2022, the payment rate is deemed to be zero if none is specified by the minister of Finance.
As for partnerships, only the members of a partnership may claim the credit, provided they are not themselves a partnership. Each member may claim a credit equal to the payment rate, multiplied by the partnership’s eligible farming expenses for the taxation year, the product of which is multiplied by the specified proportion of the member in the partnership. The credit may also apply on a prorated basis, if applicable.
In cases of multi-tiered partnership structures, a taxpayer is deemed to have a specified proportion in the second partnership that is equal to their specified proportion in the first partnership, multiplied by the first partnership’s specified proportion in the second partnership.
A taxpayer, as well as a member of a partnership, if applicable, must file a prescribed form to claim the credit and a return, if applicable, for the taxation year.
Additionally, any amount claimed under this credit is considered assistance received from a government immediately before the end of the taxation year to which it relates, thus making it taxable for the taxpayer or the member of a partnership.
The credit is treated as an amount paid on account of the tax payable by the taxpayer (other than a partnership) or member of a partnership for the taxation year for the purposes of the ITA, which has the effect of making it a refundable credit.
Under clause 5(2), this credit applies to the 2021 and subsequent taxation years.
In the Fall Economic Statement 2020, the government announced its intention to implement “a national, tax-based measure targeting the unproductive use of domestic housing that is owned by non-resident, non-Canadians, which removes these assets from the domestic housing supply.”39 Additional details were provided in the 2021 federal budget,40 which proposed a national annual 1% tax on the value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused. Budget 2021 also announced a consultation process to be led by the Department of Finance Canada in order to provide stakeholders with an opportunity to comment on the parameters of the proposed tax. The consultation ran from 6 August 2021 to 2 December 2021.41
Clause 10(1) enacts the Underused Housing Tax Act (UHTA), which contains 40 sections and falls under the responsibility of the minister of National Revenue. Clause 10(2) deems the UHTA to have come into force on 1 January 2022.
In general, the underused housing tax (UHT) applies to the legal owner or owners – who are neither permanent residents of Canada nor Canadian citizens – of residential property located in Canada, and it is payable proportionately to the owners’ legal interest in the property. Under section 6(3) of the UHTA, the tax is equal to 1% of the greater of either the value assigned to the property for property tax purposes, or the property’s most recent sale price. Alternatively, under section 6(4) of the UHTA, an owner is permitted to elect to use the fair market value of the property, as determined by an appraisal conducted that calendar year. Division 7 of the UHTA chiefly addresses the collection of the UHT.
Individuals subject to the tax are defined by exclusion in Part 1 of the UHTA, as those not belonging to any of the following groups (excluded owners):
Under section 7(1) of the UHTA, those who do not fall under any category of excluded owner are required to file a return by 30 April of each calendar year, or by a later date that the minister may allow. They must also pay any UHT amounts applicable under section 6(6). Under section 8 of the UHTA, the form and content of the return is to be prescribed by the minister.
Those subject to the UHT declaration may nevertheless be exempt from paying the tax in a given year, if they, their occupant(s) or the property in question falls under one of the following exemptions, found in sections 6(7) to 6(9) of the UHTA:
Section 11 of the UHTA details the filing and payment obligations of a bankruptcy trustee, receiver and any other representative who is administering, winding up, controlling or otherwise dealing with any property, business, estate or succession of another person.
Sections 12 and 13 of the UHTA (Part 6) contain anti–tax-avoidance rules that would require the UHT to be paid if a transaction or series of transactions were undertaken primarily to circumvent the UHT. Section 80 further addresses the tax liability of non-arm’s length transactions with respect to the residential property.
Sections 14 to 18 of the UHTA (Part 7, Division 1) address the making of certain payments under the Act and the effects of the minister extending the statutory return deadline, namely, any interest or penalties become calculable as of the extended deadline.
Sections 19 to 22 of the UHTA (Division 2) address the administration of the Act. In particular, it sets out the minister’s powers to delegate responsibility under the Act and to authorize any person to make inquiries. They cover the associated appointment of a hearing officer from the Tax Court of Canada, as well as the rights of the owners and witnesses related to such an inquiry to be represented by counsel and/or to be present during the inquiry.
Sections 23 to 28 of the UHTA (Division 3) chiefly concern the interest on outstanding UHT payments, such as the minister’s powers to waive, cancel or reduce any interest payable.
Sections 29 to 32 of the UHTA (Division 4) address the records that owners must keep to establish their liabilities and obligations under the Act and to determine whether they have complied with them. As well, the minister has powers to demand information from owners and third parties where the owners’ names are not ascertainable. Additional provisions in Division 10 generally address the use of inspections, search warrants, seizures and the retention of information related to the administration or enforcement of the Act. Division 4 also addresses the handling of confidential information and the disclosure of information gathered under the Act to law enforcement in the case of serious offences or threats to national security, as well as the rights of individuals to appeal decisions made in that regard. Section 55 (Division 9) defines “confidential information” and creates corresponding summary offences for the mishandling of confidential information.
Sections 33 to 46 of the UHTA (Divisions 5 to 7) address the minister’s power to assess amounts owing under the Act, an individual’s ability to object to those assessments and their ability to appeal a minister’s decision in regard to such an assessment.
Sections 81 to 83 (Division 12) concern the general rules for the transmission of documents related to the Act.
Section 84 (Part 8) empowers the Governor in Council to make regulations to carry out the purposes and provisions of the Act.
Under section 47(1) of the UHTA, failing to file the required return under the UHTA carries a penalty equal to the greater of $5,000 for an individual ($10,000 if the person is not an individual) or 5% of the UHT applicable for that calendar year plus 3% of the UHT applicable to the property in the calendar year for each calendar month the return is past due.
Sections 49 to 51 detail a general penalty of $250 levied against an individual for failing to comply with any provision of the Act, a $500 penalty for failing to file a return as and when required under a demand issued by the minister and a $250 penalty for every failure of an owner to provide any information or record as and when required under the Act, respectively. Sections 56 and 57 also create summary offences for failing to pay the UHT when required, and generally failing to comply with any provision of the Act for which no other offence is specified.
In addition, section 52 provides a penalty for any person who knowingly – or by gross negligence – makes or participates in, assents to or acquiesces in the making of a false statement or omission in the provision of information required by the Act.44
Section 53 creates a summary offence for failing to file or make a return as and when required under the Act, and for failing to comply with an order or notice of the minister. The punishment for these offences, upon summary conviction, is a fine ranging from $2,000 to $40,000 and/or imprisonment for a term not exceeding 12 months.
Section 54 creates an offence for making false or deceptive statements when providing any information required under the Act, and for altering or destroying records, evading or attempting to evade compliance with the Act or payment of an amount payable under the Act, attempting to obtain payment of an amount under the Act to which the person is not entitled, or conspiring with any person to undertake such actions.
The punishment for these offences, upon summary conviction, is a fine of between 50% and 200% of the UHT amount payable or sought to be evaded – or between $2,000 and $40,000 if the amount that was sought to be evaded cannot be ascertained – and/or imprisonment for a term not exceeding two years.
The Attorney General of Canada may instead choose to prosecute the offence on indictment, wherein the applicable fines described above are increased to between 100% and 200% of the UHT amount payable or sought, between $5,000 and $100,000, and/or imprisonment for a term not exceeding five years.
Section 61 sets a time limit for the prosecution of these offences at no more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree otherwise.
Under section 47(2) of the UHTA, failing to file the required return by 31 December of the applicable calendar year renders an owner ineligible for the following exemptions (as described above): qualifying occupancy; not suitable for year-round use; uninhabitable due to a disaster or hazardous conditions; major renovations; and primary place of residence.
Clauses 11 to 40 make consequential amendments to various Acts, each coming into force on 1 January 2022. In particular, clauses 11 to 13, 20, 30 and 31 add a reference to the UHTA in Schedule II of the Access to Information Act,45 section 149(3) of the Bankruptcy and Insolvency Act,46 section 462.48(2)(c) of the Criminal Code,47 section 155.2(6)(c) of the Financial Administration Act,48 section 2(a) (definition of “program legislation”) of the Canada Revenue Agency Act49 and section 40(4) of the Air Travellers Security Charge Act,50 respectively.
Clauses 13 to 16, 18 and 19 amend the Excise Tax Act (ETA)51 to add returns filed under the UHTA to the list of returns that must be filed prior to the taxpayer being issued certain rebates or refunds under the Act. In particular, these clauses amend sections 77, 229(2), 230(2), 263.02 and 296(7) of the ETA, respectively. Clause 17 amends section 238.1(2)(c)(iii) of the ETA to add amounts owing under the UHTA to the list of those that must be paid in order to be excused from filing GST/HST returns until a $1,000 threshold is reached.
Clauses 21 to 24 add a reference to the UHTA to sections 12, 18.29(3)(a), 18.31(2) and 18.32(2) of the Tax Court of Canada Act,52 respectively. Clauses 25 and 26 add a reference to the UHTA to sections 97.29(1)(a) and 107(5)(g.1) of the Customs Act,53 respectively. Clauses 27 to 29 add a reference to the UHTA to sections 18(1)(t), 164(2.01) and 221.2(2) of the ITA, respectively. Finally, clauses 36 to 40 add reference to the UHTA to sections 51, 54, 108(7), 109(5), and the description of the amount represented by “B” in section 161(1)(d) of the Greenhouse Gas Pollution Pricing Act,54 respectively.
The Canada Emergency Business Account (CEBA) is a loan program put in place during the pandemic. These loans were paid out by Export Development Canada under section 23(1) of the Export Development Act.55
Eligible businesses that applied before 30 June 2021 were offered loans of up to $60,000 (in the early days of the program, the maximum amount was $40,000). These loans are interest free until 31 December 2023, and an annual interest rate of 5% will take effect on 1 January 2024. If at least 75% of the loan amount (for loans of $40,000 or less) is repaid by 31 December 2023, the remaining balance will be forgiven. For loan amounts over $40,000, at least 50% of any loan expansion received must also be repaid for loan forgiveness to apply.
As of 2 December 2021, $49.2 billion had been paid out in CEBA loans.56 In 2020–2021, a total of $13.1 billion was paid out in loan incentives (debt write-offs).57 The 2022 federal budget outlined $2.1 billion in additional incentives for 2021–2022;58 in fact, the latter amount turned out to be nil59.
Clauses 41 to 43 of Bill C-8 establish the limitation or prescription period to recover money owing under a CEBA loan, namely, six years from the date of default. The date of default is the day on which the person making the claim first knew, or ought reasonably to have known, that the default had occurred. The six-year period resets every time the borrower acknowledges their debt, for example, by promising to pay the outstanding balance or by making a payment. Money owing on the loan may be recovered by way of deduction from, set-off against or compensation against any sum of money that may be payable by the Government of Canada to the person, other than an amount associated with a Canada Child Benefit overpayment.
The length of the limitation or prescription period (six years) is similar to other loan and repayment periods, such as those established under the Canada Student Financial Assistance Act or the EIA60. However, the limitation period under the ITA is 10 years.
Clause 44 authorizes the minister of Finance to make payments of up to $100 million to the provinces and territories out of the Consolidated Revenue Fund for the purpose of supporting ventilation improvement projects in schools. The maximum payments per province or territory are:
Clause 45 authorizes the minister of Health to make payments of up to $300 million to the provinces and territories out of the Consolidated Revenue Fund for the purpose of supporting their COVID-19 proof-of-vaccination initiatives. The amount each province or territory receives is to be determined by the minister of Health.
Clause 46(1) authorizes the minister of Health to make payments of up to $1.72 billion out of the Consolidated Revenue Fund for the purpose of covering any expenses incurred on or after 1 April 2021 in relation to COVID-19 tests.
Clause 46(2) requires the Minister of Health to prepare and table in each house of Parliament a report setting out the number of payments made and the total amount paid under clause 46(1), if any, along with the number of tests purchased and how they were distributed. This report must be prepared within three months after clause 46 comes into force and every three months thereafter.
Clauses 47 and 48 of Bill C-8 amend section 12 and Schedule VI of the EIAEmployment Insurance Act to specify the maximum number of weeks for which employment insurance (EI) regular benefits may be paid to certain seasonal workers in regions with very seasonal economies. Under the EI program, regular benefits are available to eligible persons who lose their jobs through no fault of their own and are able and available to work.62
Section 12(2.3) of the EIA sets out the maximum number of weeks for which certain seasonal workers may receive regular benefits. Under a pilot project introduced in 2018, the Pilot Project Relating to Increased Weeks of Benefits for Seasonal Workers,63 seasonal workers in certain regions are eligible for up to five additional weeks of benefits.64 The pilot project was developed in light of the challenge many seasonal workers face with seasonal income gaps. The Canada Employment Insurance Commission explains:
If the number of weeks of EI benefits for which a seasonal worker qualifies is not sufficient to bridge the period between the seasonal layoff and the return to their seasonal work, and the seasonal worker is unable to find other work, they are said to be experiencing an income gap or “trou noir.” The frequency and duration of income gaps can be impacted by the cyclical nature of seasonal jobs and weather patterns as well as by the EI economic region’s rate of unemployment, which affects the duration of EI benefits.65
While the pilot project was initially scheduled to end on 30 May 2020, it was extended by amendments to the Employment Insurance Regulations (EIR).66 The Budget Implementation Act, 2021 replicated the parameters of the pilot project in the EIA and extended the measures to 29 October 2022, with these changes coming into force on 26 September 2021.67 Employment and Social Development Canada indicated that extending the pilot project’s parameters would allow the government time to “[examine] the effectiveness of the approach used in the pilot project.”68
Currently, sections 12(2.3)(a) to 12(2.3)(d) of the EIA require that, to be eligible for the additional weeks of benefits provided through the pilot project (as specified in Schedule V of the EIA, based on hours of insurable employment and regional unemployment rate), claimants must be ordinarily resident69 of one of the regions covered by the pilot project (listed in Schedule VI of the EIA) and have benefit periods established between 26 September 2021 and 29 October 2022. In the five years (260 weeks) before this benefit period, claimants must have been seasonal workers. Claimants demonstrate that they were seasonal workers if they had at least three benefit periods established in the last five years during which regular benefits were paid or payable, and at least two of these benefit periods must have begun around the same time of year70 as their benefit period starting between 26 September 2021 and 29 October 2022. Note that the Canada Emergency Response Benefit and the Canada Recovery Benefit are not considered EI benefits, and periods for which these benefits were received do not qualify as EI benefit periods.71
The amendments in clause 47 of Bill C-8 move the contents of sections 12(2.3)(a) to 12(2.3)(d) of the EIA to sections 12(2.3)(a)(i) to 12(2.3)(iv) of the same Act and add new section 12(2.3)(b). Section 12(2.3)(b) allows EI benefit periods that fall within the period beginning 5 August 2018 and ending 25 September 2021 to be counted towards eligibility for the pilot project, provided that three conditions are met:
When presenting the federal government’s Economic and Fiscal Update 2021 in the House of Commons on 14 December 2021, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, stated that the government intended to “bring forward legislation … to ensure that seasonal workers who received pandemic benefits [72] can still qualify for the EI seasonal workers pilot project.”73
Indeed, the addition of new section 12(2.3)(b) to the EIA allows seasonal workers who qualified for the pilot project between 5 August 2018 and 25 September 2021 to qualify again for the period starting 26 September 2021 and ending 29 October 2022, without needing to demonstrate that they had at least three eligible benefit periods in the past five years. This facilitates participation in the pilot project (and the receipt of additional weeks of benefits) for seasonal workers whose employment was disrupted by the pandemic.
Since the addition of new section 12(2.3)(b) of the EIA changes the numbering used in section 12(2.3)(a), Bill C-8 makes corresponding changes to sections 12(2.4) and 12(2.5) and to Schedule VI of the EIA.
The government indicated in the Economic and Fiscal Update 2021 that, in addition to the UHT exemptions listed in Bill C-8, it plans to bring forward an exemption for vacation/recreational properties, which would apply to an owner’s interest in a residential property for a calendar year, if the property is located in an area of Canada that is not an urban area within either a census metropolitan area or a census agglomeration having 30,000 or more residents, and is personally used by the owner – or the owner’s spouse or common-law partner – for at least four weeks in the calendar year.74
(2.09 MB, 96 pages). [ Return to text ] (2.09 MB, 96 pages), pp. 15 and 80. [ Return to text ] (2.09 MB, 96 pages), p. 80. [ Return to text ] (2.09 MB, 96 pages), p. 81. The term “assistance” is defined in clause 6(1) of Bill C-8. [ Return to text ] (2.09 MB, 96 pages), p. 81. [ Return to text ] (8.69 MB, 725 pages), Budget 2021, p. 217. [ Return to text ] (8.69 MB, 725 pages), Budget 2021, p. 93. [ Return to text ] (8.69 MB, 725 pages), Budget 2021, p. 594. [ Return to text ] (2.09 MB, 96 pages), p. 11. [ Return to text ] (2.09 MB, 96 pages), p. 81. In the context of the current legislation, a “backstop jurisdiction” is an informal term that is understood to be a jurisdiction where the federal carbon pollution pricing backstop system applies, either because the jurisdiction does not meet the federal benchmark standards or because it requested the federal backstop system. See Government of Canada, “1.3. Where the Act applies,” Greenhouse Gas Pollution Pricing Act: Annual report for 2019. These jurisdictions are referred to as a “listed province” for the purposes of “Part 1 – Fuel Charge” of the Greenhouse Gas Pollution Pricing Act (GGPPA), S.C. 2018, c. 12, s. 186, and appear in Part 1 of Schedule 1 to the GGPPA. In its Economic and Fiscal Update 2021, the government confirmed that the “designated provinces,” under new section 127.42(1) of the ITA are Ontario, Manitoba, Saskatchewan and Alberta, namely all the “listed provinces” provided in Schedule 1 that do not meet the federal benchmark, excluding the territories that requested the federal backstop system (Yukon and Nunavut). See Department of Finance Canada, Economic and Fiscal Update 2021 (2.09 MB, 96 pages), p. 14. The term “designated province” is defined as a province specified by the minister of Finance and “[i]t is expected that the designated provinces for a calendar year will be any provinces that are involuntary backstop jurisdictions.” See Government of Canada, Amendments to the Income Tax Act and the Income Tax Regulations proposed by Bill C-8. [ Return to text ] (2.09 MB, 96 pages), p. 81. [ Return to text ] (2.09 MB, 96 pages), p. 81. Additionally, section 248(1) of the ITA defines the term “farming” and may help provide guidance on the meaning of “farming activities” under new section 127.42 of the ITA. [ Return to text ] (2.09 MB, 96 pages), p. 82. [ Return to text ] (2.09 MB, 96 pages), p. 83. [ Return to text ] (8.69 MB, 725 pages), Budget 2021, p. 305. [ Return to text ] (3.70 MB, 402 pages), p. 112. [ Return to text ] (4.24 MB, 304 pages), Budget 2022, p. 255. [ Return to text ] (4.45 MB, 398 pages), p. 108. [ Return to text ] (2.59 MB, 280 pages), SOR/2018-228, 2 November 2018, in Canada Gazette, Part II, 14 November 2018, p. 4168. [ Return to text ] (2.59 MB, 280 pages), SOR/2018-228, 2 November 2018, in Canada Gazette, Part II, 14 November 2018, p. 4177. [ Return to text ] (7.70 MB, 352 pages), SOR/2020-111, 20 May 2020, in Canada Gazette, Part II, 10 June 2020, p. 961; and Employment Insurance Regulations, SOR/96-332. [ Return to text ]The concept of ordinary residence for the purposes of employment insurance is explained in the Digest of Benefit Entitlement Principles. See Government of Canada, “1.2.5 Ordinary residence,” Digest of Benefit Entitlement Principles Chapter 1 – Section 2:
The term “ordinarily resident” is not defined in the legislation. Taking the meaning of the word “resident,” it refers to the place in which a claimant has settled (EI Regulations 17(1) and 17(2)). The modifier “ordinarily” clearly excludes from the definition, any location in a place in which a person has no permanent residence, or places where a person only occasionally or periodically stays.[ Return to text ]
(2.09 MB, 96 pages), p. 83. [ Return to text ]
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