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BANC - Standing Committee

Banking, Commerce and the Economy

Report of the committee

Thursday, June 1, 2023

The Standing Senate Committee on Banking, Commerce and the Economy has the honour to table its

SEVENTH REPORT

Your committee, which was authorized to examine the subject matter of those elements contained in Clauses 118 to 122 concerning cryptoasset mining in Part 2, and Divisions 1, 2, 6, 7, 26, 33 and 37 of Part 4 of Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023, has, in obedience to the order of reference of Thursday, April 27, 2023, examined the said subject-matter and now reports as follows:

1. Part 2, clauses 118 to 122 concerning cryptoasset mining

Clauses 118 to 122 of Bill C-47 propose amendments to the Goods and Services Tax/Harmonized Sales Tax (GST/HST) found in the Excise Tax Act, to set out the GST/HST rules for cryptoasset mining activity.

The committee is concerned that despite the consultations held by the Department of Finance Canada in 2022 on this topic, there is still ambiguity that arises on its implementation. The committee suggests that the department consult again with stakeholders, in particular to address concerns of the Digital Asset Mining Coalition.

2. Part 4, Division 1

Division 1 of Part 4 amends the Bank Act to create a single external complaints body for banks.

The committee believes that switching to a single external complaints body is beneficial for consumers, but suggests that a deadline, such as one year after Royal Assent of the bill, be considered for the designation of the external complaints body and for the resolution of ongoing complaints by the former external complaints bodies. Once the external complaints body is established, the committee expects the Financial Consumer Agency of Canada to use its powers to ensure that it is held to the highest standard of transparency and accountability and that it is fair for all parties.

3. Part 4, Division 2

Division 2 of Part 4 amends the Pension Benefits Standards Act, 1985 and the Pooled Registered Pension Plans Act to allow federally regulated pension plans and pooled registered pension plans to offer a variable payment life annuity to plan members at retirement.

The committee notes that much of the relevant information about variable payment life annuities will be contained in regulation, which is key to interpreting the legislation. At this point, the committee does not believe that it has sufficient information on this topic, particularly with respect to issues such as the expected market and scale for variable payment life annuities.

4. Part 4, Division 7

Division 7 of Part 4 would enact the Canada Innovation Corporation Act.

The committee suggests that the government conduct an evaluation of the Canada Innovation Corporation three years after its establishment to determine whether it has been successful in meeting its mandate and to publish the results of this in-depth evaluation in its annual report that should be tabled in Parliament.

Finally, the committee expects the government to conduct extensive consultations with stakeholders, as certain witnesses who appeared before the committee expressed that the government consultation process was insufficient. The committee continues to be concerned that the federal government chooses to include substantive changes to Canadian law in a budget implementation bill, which means that there is not sufficient time to properly examine the bill and hear stakeholders’ concerns.

The committee has no material observations regarding Divisions 6, 26, 33 and 37 of Part 4.

Respectfully submitted,

PAMELA WALLIN

Chair


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