Government consults Canadians to advance key Budget 2023 priorities
June 6, 2023 - Ottawa, Ontario - Department of Finance Canada
The Government of Canada is today launching a series of consultations with Canadians on Budget 2023 measures to grow the clean economy; create new opportunities for workers; strengthen the government’s ability to fight money laundering and terrorist financing; modernize multinational business taxation to ensure tax fairness for Canadians and Canadian businesses; and consolidate Canada Mortgage Bonds into the Government of Canada’s regular borrowing program, in order to redirect savings to affordable housing programs.
Canadians are invited to share their views and feedback on the proposed measures as the government works towards implementation of these previously announced priorities.
The government is also seeking views on RBC’s proposed acquisition of HSBC Bank Canada.
Growing Canada’s Clean Economy was a central pillar of Budget 2023, including a list of clear and predictable investment tax credits. The government is seeking feedback on design details for the:
- New, refundable Clean Electricity Investment Tax Credit and Clean Technology Manufacturing Investment Tax Credit;
- Clean Hydrogen Investment Tax Credit, announced in the 2022 Fall Economic Statement;
- Clean Technology Investment Tax Credit, introduced in the 2022 Fall Economic Statement; and
- Proposed enhancements to the Investment Tax Credit for Carbon Capture, Utilization, and Storage, which were introduced in Budget 2023.
As the Department of Finance works to develop specific design details of these investment tax credits, it welcomes stakeholder organizations and individuals to submit their comments to cleangrowthITC-CIIcroissancepropre@fin.gc.ca.
Labour requirements will be attached to a number of these investment tax credits, as detailed in Budget 2023. The government will continue to consult with unions and other stakeholders on these tax credits to ensure fair pay for workers.
As committed in Budget 2023, the government is consulting with Canadians and Canadian businesses on the reciprocal treatment of its clean economy measures, including domestic content requirements. The government is considering matching other countries’ domestic content requirements with similar restrictions in Canada, in a manner such that any country with incentives open to Canadian business would receive reciprocal treatment in Canadian incentives, while businesses from countries which exclude Canadian businesses would face similar restrictions in Canada.
Ensuring Fair Opportunities for Canadian Workers with Federal Reciprocal Procurement. This will include ensuring the government buys goods and services from countries that grant Canadian businesses a similar level of access to their government procurement markets and contracts. The government will begin targeted engagement with provinces and territories, industry stakeholders, and workers and unions on concrete reciprocal procurement measures that can be implemented in the near term. Proposed measures will include placing conditions on foreign suppliers’ participation in federally-funded infrastructure projects, including provincial projects, applying strict reciprocity to federal procurement, matching domestic content requirements faced by Canadians companies abroad, and creating a preference program for Canadian small businesses.
Combatting Money Laundering and Terrorist Financing, as announced in Budget 2023, by strengthening Canada’s Anti-Money Laundering and Terrorist Financing (AML/ATF) Regime. Consultations will examine a broad range of issues to strengthen the AML/ATF Regime, including how different orders of government can collaborate more closely, measures to support investigations and prosecutions, information sharing, closing regulatory gaps, and the role of the AML/ATF Regime in protecting national and economic security. The government is seeking views on the related consultation document, which may be sent to email@example.com with “Consultation Submission” as the subject line by August 1, 2023. Feedback received from this consultation will complement this year’s Parliamentary review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Reforming and Modernizing Canada’s Transfer Pricing Rules to uphold the integrity of the tax system, ensure tax fairness, and preserve Canada’s attractiveness as a destination for investment and business activity, as committed to in Budget 2021. Transfer pricing rules are used for tax purposes to allocate income or losses connected to cross-border transactions among members of a multinational enterprise group. The Department of Finance is seeking input from stakeholders on the related consultation paper, which may be sent to firstname.lastname@example.org by July 28, 2023.
Consolidating Canada Mortgage Bonds into the regular Government of Canada borrowing program to ensure efficient pricing of government-backed AAA-rated bond offerings. As announced in Budget 2023, reduced borrowing costs from consolidation would allow savings to be redirected to priority affordable housing programs. In the related consultation paper, the government is seeking views on possible market benefits and impacts, as well as how best to proceed with implementation. Interested stakeholders are invited to submit their views to CMBconsultation-consultationsOHC@fin.gc.ca, with “Consultation on the proposal to consolidate CMBs” as the subject line, before July 14, 2023.
Royal Bank of Canada’s Proposed Acquisition of HSBC Bank Canada was announced on November 29, 2022. Under the Bank Act, the Minister of Finance is responsible for determining whether or not the proposed acquisition should be approved, including whether any conditions on approval should be imposed. In addition to regulatory reviews by the Competition Bureau (announced May 1, 2023) and the Office of the Superintendent of Financial Institutions, the Department of Finance invites comments on whether the proposed acquisition is in the best interest of Canadians and the Canadian financial sector. Views and feedback from Canadians will inform the Minister of Finance’s decision, and can be submitted to email@example.com before July 6, 2023.
Media may contact:
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
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