Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Excise Tax Act and the Competition Act”.

Part 1 amends the Excise Tax Act in order to implement a temporary enhancement to the GST New Residential Rental Property Rebate in respect of new purpose-built rental housing.

Part 2 amends the Competition Act to, among other things,

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Rebate for purpose-built rental housing

(3.‍1) The amount of a rebate under subsection (3) in respect of a taxable supply of purpose-built rental housing — being prescribed property — is determined in accordance with subsection (3.‍2) if prescribed conditions are met and if

• (a) the taxable supply is a supply by way of sale of a residential complex or an interest in a residential complex to a person that is not a builder of the residential complex, or of a residential complex or an addition to a residential complex to a person that is, otherwise than by reason of subsection 190(1), a builder of the residential complex or addition, as the case may be, and the construction or last substantial renovation of the residential complex or addition, as the case may be, begins after September 13, 2023 but before 2031 and is substantially completed before 2036; or

• (b) the taxable supply is a supply by way of sale of a residential complex that is deemed to be made to a person that has converted real property for use as the residential complex and is, as a result, deemed under subsection 190(1) to be a builder of the residential complex and the construction or alteration necessary to effect the conversion begins after September 13, 2023 but before 2031 and is substantially completed before 2036.

Amount of rebate — purpose-built rental housing

(3.‍2) If subsection (3.‍1) applies, the amount of the rebate under subsection (3) is equal to the amount determined as if the first formula in subsection (3) and the descriptions for that formula were read as follows:

Public service bodies — purpose-built rental housing

(9.‍1) If a person that is a public service body is entitled to a rebate under section 259 in respect of the tax under subsection 165(1) that is payable in respect of a purchase from the supplier (within the meaning of subparagraph (3)‍(a)‍(i)) or a deemed purchase (within the meaning of subparagraph (3)‍(a)‍(ii)), if subsection (3.‍1) applies in respect of the purchase from the supplier or the deemed purchase and if the person files in accordance with subsection (7) an application for a rebate under subsection (3) in respect of the purchase from the supplier or the deemed purchase, the following rules apply:

• (a) the reference in subsection (9) to “sections 254, 256, 256.‍1 and 259” is to be read as a reference to “sections 254, 256 and 256.‍1” in applying subsection (9) in respect of the tax included in determining the rebate under subsection (3); and

• (b) no amount of the tax included in determining the rebate under subsection (3) may be included in determining a rebate of the person under section 259.

Market or industry inquiry

10.‍1 (1) The Commissioner may, Insertion start after consulting Insertion end the Minister, conduct an inquiry into the state of competition in a market or industry if Insertion start the Commissioner Insertion end is of the opinion that it is in the public interest to do so.

Direction to conduct inquiry

(2)  Insertion start The Minister may direct the Commissioner to conduct an inquiry into the state of competition in a market or industry if the Minister is of the opinion that it is in the public interest that such an inquiry be conducted Insertion end . Before making the direction, the Minister must consult the Commissioner to determine whether the inquiry would be feasible, including with regard to its cost.

Proposed terms of reference

(3) If, after the consultation Insertion start referred to in subsection (1) or (2), it is decided Insertion end to Insertion start proceed with Insertion end the inquiry, the Commissioner must prepare proposed terms of reference for the inquiry and publish them on a publicly available website and invite the public to provide comments during a period of not less than 15 days.

Final terms of reference

(4) After having taken into account any comments received from the public, the Commissioner must submit to the Minister for approval the Commissioner’s final terms of reference and, if they are approved, the Commissioner must publish them on a publicly available website.

Duration of inquiry

(5) The inquiry commences on the day on which the final terms of reference are published and the Commissioner must complete the inquiry and publish a report of the Commissioner’s findings on a publicly available website before the expiry of the period specified by the Minister, which period, subject to subsection (6), is not to exceed 18 months.

Extension

(6) The Minister may extend the specified period for periods of up to three months.

Sending draft to certain persons

(7) Before the report is published, the Commissioner must send to every person who was required to do anything under an order made under subsection 11(1) a complete or partial draft of the report and inform the person that they may, within three working days after the day on which it was sent, provide the Commissioner with the person’s concerns regarding factual inaccuracies or confidential information that should not be disclosed in the final report.

Order for oral examination, production or written return

11 (1) If, on the ex parte application of the Commissioner or his or her authorized representative, a judge of a superior or county court is satisfied by information on oath or solemn affirmation that an inquiry is being made under section 10 or 10.‍1 and that a person has or is likely to have information that is relevant to the inquiry, the judge may order the person to

Counsel

21 Whenever in the opinion of the Commissioner the public interest so requires, the Commissioner may apply to the Attorney General of Canada to appoint and instruct counsel to assist in an inquiry under section 10 or 10.‍1, and on such an application the Attorney General of Canada may appoint and instruct counsel accordingly.

• (b) any information obtained in the course of an inquiry under section 10 or 10.‍1;

• (b) any information obtained in the course of an inquiry under section 10 or 10.‍1;

• (k) directly or indirectly imposing excessive and unfair selling prices.

Prohibition if abuse of dominant position

• (a) a practice of anti-competitive acts; or

• (b) conduct

  • (i) that had, is having or is likely to have the effect of preventing or lessening competition substantially in a market in which the person or persons have a plausible competitive interest, and

  • (ii) the effect is not a result of superior competitive performance.

    End of inserted block

Additional or alternative order

Administrative monetary penalty

• (a) $25,000,000 and, for each subsequent order under either of those subsections, an amount not exceeding $35,000,000, and

Factors to be considered

• (a) the effect of the conduct on barriers to entry in the market, including network effects;

• (b) the effect of the conduct on price or non-price competition, including quality, choice or consumer privacy;

• (c) the nature and extent of change and innovation in a relevant market; and

• (d) any other factor that is relevant to competition in the market that is or would be affected by the conduct.

Limitation period

Exception — non competitors

Definition of competitor

(11) In subsections (1) and (1.‍1), competitor includes a person who it is reasonable to believe would be likely to compete with respect to a product in the absence of the agreement or arrangement.

the Tribunal may, subject to sections 94 and 95,

Reference if parties agree

124.‍2 (1) The Commissioner and a person who is the subject of an inquiry under section 10 or 10.‍1 may by agreement refer to the Tribunal for determination any question of law, mixed law and fact, jurisdiction, practice or procedure, in relation to the application or interpretation of Part VII.‍1 or VIII, whether or not an application has been made under Part VII.‍1 or VIII.