Bill C-47

What does Bill C-47 mean, and what is its implication?

As we navigate through half of 2023, some fiscal rules have come into play influencing the lives of Canadians. Yes! You have guessed it right we are talking about the budget implementation act, also known as Bill C-47. Reading about financial legislation doesn’t sound fun to the general public. So, we will be trying our best to provide our readers with much-needed information about Bill C-47.

In simple words, Bill C-47 is an amendment that introduces several tax changes that were announced in the 2023 Federal budget. On June 22, 2023, this bill received Royal Assent and became law.

Bill C-47

What Does Bill C-47 Mean for Industry?

Bill C-47 aims to provide inflationary relief to Canadians and others before proposing measures. It makes several changes in the federal budget and impacts various industries.

1. Registered Education Saving Plans: 

With this bill, the Minister of Finance Canada is making the cost of education more affordable. The bill increases the withdrawal limit for RESPs from 5000$ to 8000$ for full-time students. Also, it increases the limit from 2500$ to 4000$ for part-time students.

2. Accountability of Airlines: 

Through this bill, the federal government can now hold airlines accountable for delays, cancellations, and lost baggage.

3. Tradespeople: 

The bill supports skilled tradespeople by doubling the Tradesperson’s Tools Deduction from 500$ to 1000$. It is to help the tradespeople invest in the tools they need to build Canada.

4. Food and Drug Act (FDA): 

It has caused major Food and Drug Act (FDA) amendments. It is supposed to remove the existing exemption for natural health products within the NHPR. This means that existing provisions of the FDA, as described above, now apply to natural health products.

5. Money Laundering:

Bill C-47 is designed to enhance financial transparency and reportable transactions. It aimed to combat money laundering and counter the financing of terrorism. Financial institutions and businesses will be affected.

Bill C-47—Sanctions Ownership and Control

This Bill includes adjustments to possession and manipulation. It has been done in corporate systems below Canada’s Special Economic Measures Act (SEMA).

In this section, a deemed ownership concept is introduced. It states that when an individual or entity controls another entity, they are deemed to own its property. The Bill defines three techniques to decide “control”.

What legislation was amended?

Bill C-47 includes the new mandatory disclosure rules. It increases the compliance burden for taxpayers, advisors, and promoters.

It revises and amends the mandatory disclosure rules using expanding the reportable transaction rules. It means more types of financial activities and transactions will be subject to reporting requirements. It also introduces new reporting obligations in respect of “notifiable transactions” and “reportable uncertain tax treatments”: This means that individuals and businesses will now have to report more information about certain transactions that they are involved in. Bill C-47 has increased penalties for extending the normal reassessment period in case of failure to comply with the mandatory disclosure rules.

It introduces amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). These changes empower the regulatory government. It increases the scope of AML (Anti-Money Laundering) guidelines.

What is the effect of the Amendments?

The complex effects of these amendments caused some major changes. It affected the realtors and their financial compliance. They strengthen reporting requirements for federally regulated financial institutions. Also, provide a stronger mechanism for penalty enforcement.

Deemed Ownership Provision

It is the major highlight of Bill C-47. As mentioned above, it introduces the “Deemed Ownership Provision” concept. It makes it easier for authorities to look behind complex ownership structures. In that way, they can investigate and interrogate the ownership rights of individuals.

Authority to Choose Persons Unrelated to the Targeted Foreign State

Bill C-47 gives the Canadian government the power to delegate global organizations. There can be no direct link between it and the foreign state targeted. This measure improves Canada’s ability to prosecute those committed to nefarious activities.

Application of the AML Framework for Sanctions Enforcement

This works on the enforcement of sanctions. The C-47 Bill aligns with the aim of AML. The aim is to integrate the prevention of crimes and financial delinquency.

Who is affected by the Amendments?

Bill C-47 addresses Money Laundering and Terrorist Financing. This legislation strengthens Canada’s efforts to combat money laundering, terrorist financing, and other illicit activities.

As a business owner or individual, it is crucial to understand the implications. It may impact operations or personal finances. But in the longer run it would solve Canadian financial challenges. So we can say the bill won’t affect the general public .

When do the Amendments come into force?

The amendments of bill C-47 came into force on June 22 2023.

How do the Amendments affect compliance with the SEMA and the JVCFOA?

Bill C-47 ensures the changed rules match the current SEMA and JVCFOA laws. This coordination strengthens Canada’s approach to global security challenges.

Conclusion

Bill C-47 represents a significant step. It works towards strengthening Canada’s efforts in combating money laundering and financing. As a business owner or individual, understanding the implications of this legislation is crucial. It ensures compliance and minimizes the risk of penalties or reputational damage. You can contribute to a more secure financial future. You can learn about the provisions of Bill C-47, seek professional guidance, and stay informed of ongoing developments.

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