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The federal Finance Department is asserting that it has the power to freeze a law passed by Parliament that gives more generous tax treatment to small businesses, in what experts are calling a break with parliamentary tradition and federal law.
Despite the legislation receiving royal assent on June 29, Finance stated that the new rules won’t come into effect until Jan. 1, since no implementation date is spelled out in the bill. The move defies federal law, which says bills go into effect when given royal assent unless otherwise specified, according to experts in legislative process and parliamentary procedure.
The legislation, Bill C-208, reduces the tax burden on owners of small- and medium-sized businesses who want to pass on their companies to family members. It allows those business owners to claim proceeds from the sale of shares to an adult child or grandchild as capital gains, rather than as dividend payments. Capital gains are taxed at a lower rate, and in some cases a taxpayer can use a lifetime exemption to avoid paying any tax at all.
While 19 Liberals supported the bill, a large majority of the caucus voted against the measure, and the government did not support it.
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Canada's Finance Minister Chrystia Freeland attends a news conference on Parliament Hill in Ottawa, Ontario, Canada, April 19, 2021.
PATRICK DOYLE/Reuters
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House of Commons bid for virus-lab firing records could be doomed by election call
The legal battle over Ottawa’s refusal to release uncensored records regarding the firing of two federal scientists from the country’s top infectious-disease laboratory could be extinguished entirely if the Liberals win a majority government.
Former Commons law clerk Rob Walsh said it appears that the Liberal government is slow-walking the court proceedings in the expectation that a general election will be called in August and the party will win a majority.
Parliament is automatically dissolved once election writs are issued and that means all parliamentary business ends, including the motion to require the government to release classified documents on the two scientists.
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The government has warned that disclosure of information in the documents could jeopardize national security, and the court filing said it could also threaten Canada’s international relations. The RCMP are investigating whether the two dismissed scientists passed on Canadian intellectual property to China, including to the Wuhan Institute of Virology.
Read more: Liberal government found in contempt of Parliament over case of fired Winnipeg lab scientists
Top public-health official defies Parliament and refuses to release documents on fired scientists
As COVID-19 restrictions ease, families struggle to rebuild relationships with loved ones in group homes
For months, families have been struggling to navigate the visitation rules of congregate care settings. Each group home has been left to interpret provincial guidelines as they see fit, creating what some families see as a confusing, illogical and onerous patchwork of rules.
Now, as COVID-19 case numbers drop and visitation rules start to relax, families’ grief over missing their loved ones is being replaced with a new challenge: trying to rebuild relationships strained by months of limited contact.
For Daniel Zaretsky’s mother, loosening restrictions meant getting to hug her son – who has autism and is non-verbal – for the first time in more than a year. Zaretsky has been separated from his family during the pandemic as he lives in a group home in Vaughan, Ont., for people with developmental disabilities.
“He doesn’t trust us any more. Why would he?” Zaretsky’s father said, adding that his son has been withdrawn and less responsive during their outdoor visits. “That’s the reaction that you see with children who have been abandoned.”
The Decibel podcast, Lebanon’s ‘deliberate depression’: Lebanon’s financial crisis was only made worse last year when an explosion ripped through the port of its capital city, Beirut, killing more than 200 people. The Globe’s senior international correspondent Mark MacKinnon is in Lebanon, and talks about what he has seen in Beirut’s largest hospital, how Lebanon has gotten to the brink of a “social explosion,” according to its prime minister, and why this threatens the very existence of the country.
Subscribe to our Olympics newsletter: Going for gold under the cloud of COVID-19 makes the Tokyo Summer Games an Olympics like no other. Tokyo Olympics Update is here to help you make sense of it all, with original stories from Globe reporters in Canada and Tokyo, tracking Team Canada’s medal wins, and past Olympic moments from iconic performances.
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ALSO ON OUR RADAR Lightning beat Canadiens 1-0 to win Stanley Cup: The Tampa Bay Lightning brought home the Stanley Cup for the second time in a row last night after a 1-0 over the Montreal Canadiens in Game 5. The Lightning won Wednesday night before a packed crowd on home ice at Amalie Arena.
Two remain in AFN national chief race: After three rounds of voting, RoseAnne Archibald, who announced in May that she would not be seeking re-election as the Ontario regional chief of the AFN, and Muskowekwan First Nation Chief Reginald Bellerose of Saskatchewan are the last remaining candidates for the new national chief of the Assembly of First Nations. Nishnawbe Aski Nation Grand Chief Alvin Fiddler decided to withdraw from the fourth ballot to support Archibald, adding it is time for the national chief to be a woman.
Green Party lays off staff in Leader Annamie Paul’s office: Weeks ahead of her non-confidence vote, the Green Party has temporarily laid off two of Annamie Paul’s staff members, considerably reducing the size of her office. According to three sources, these staff changes went through despite objections from Paul.
Lytton evacuees to get chance to see remains of the town: After last Wednesday’s fire that destroyed most of the town of Lytton, evacuated residents will have the chance to drive through the town on a bus this Friday. Hundreds of residents are hoping to join the bus tour planned by the regional district to see what’s left of their community.
Jacob Zuma hands himself over to South African prison: South Africa’s former president Jacob Zuma has surrendered to prison to begin serving a 15-month jail sentence for contempt of court. The sentence was handed down to Zuma after he repeatedly violated court orders to testify to a public inquiry on state corruption. The inquiry has uncovered evidence to support a litany of allegations of bribery and influence-peddling during Zuma’s presidency.
MORNING MARKETS Global shares decline: Global stocks fell on Thursday, tracking a slump in Asia amid a widening crackdown on the tech sector in China and concern over the strength of the country’s economic recovery, while oil prices also sagged on supply uncertainty. Just before 6 a.m. ET, Britain’s FTSE 100 fell 1.5 per cent. Germany’s DAX and France’s CAC 40 fell 1.35 per cent and 1.93 per cent, respectively. In Asia, Japan’s Nikkei closed down 0.88 per cent. Hong Kong’s Hang Seng dropped 2.89 per cent. Wall Street futures were down. The Canadian dollar was trading at 79.65 US cents.
WHAT EVERYONE’S TALKING ABOUT As climate change increases the risk of fires, Canada’s approach to wildfire management isn’t working
“Wildfire is a complex problem because it can be harmful – threatening human lives, property and natural resources – but also beneficial, maintaining the diversity and resilience of landscapes. Canada’s predominant fire suppression approach often disregards preventative and longer-term strategies that support wildfire mitigation, such as forest thinning, fuel removal and regular use of prescribed fire, which is the intentional use of controlled burning to manage landscapes.” – Kira Hoffman
Why is America’s history in dealing with Indigenous peoples held in a harsher light than Canada’s?
“In a January analysis, The Harvard Political Review cited this, saying the image of Canada as being more enlightened in its approach constitutes ‘a progressive facade.’ On the question of political autonomy, there is no comparison, writes Selena Zhao. In Canada, there is no recognition of Indigenous statehood under the Indian Act of 1876, which still exists.” – Lawrence Martin
Same-sex marriage is, slowly, finding acceptance in churches around the world
“It’s worth remembering that if we’re to embrace without discrimination all of the Old Testament teachings, we have to justify genocide, slavery and selling one’s children into bondage. As a Christian and an ordained cleric I believe that we can take the Bible seriously or literally, but we can’t always do both.” – Michael Coren
TODAY’S EDITORIAL CARTOON Open this photo in gallery
David Parkins
David Parkins/The Globe and Mail
LIVING BETTER
Four easy frozen desserts to help you keep cool this summer
No doubt about it, this summer is going to be a hot one. With record-breaking temperatures already hitting the West Coast, and heat warnings being issued in other parts of the country, this is a good year to get acquainted with making some delicious frozen treats. Julie Van Rosendaal has created options for pops, pies, sandwiches and slushies that will keep everyone cool and happy without relying on the frozen foods aisle.
MOMENT IN TIME: July 8, 1923 Open this photo in gallery
SAINT JULIEN, BELGIUM - AUGUST 02: The setting sun illuminates the sculpture of the 'Brooding Soldier' the monument commemorates the Canadian First Division's participation in the Second Battle of Ypres of World War I. August 2, 2014 in Saint Julien, Belgium. Monday 4th August marks the 100th anniversary of Great Britain declaring war on Germany. In 1914 British Prime Minister Herbert Asquith announced at 11 pm that Britain was to enter the war after Germany had violated Belgium neutrality. The First World War or the Great War lasted until 11 November 1918 and is recognized as one of the deadliest historical conflicts with millions of causalities. A series of events commemorating the 100th anniversary are taking place throughout the day. (Photo by Christopher Furlong/Getty Images)
Christopher Furlong/Getty Images
Brooding Soldier monument unveiled in Belgium
In 1920, Regina architect Chapman Clemesha, a First World War veteran, submitted a design to a national competition for memorials to commemorate key Canadian battles in Belgium and France. His entry was one of only two selected by the international jury – the other being Walter Allward’s more famous Vimy memorial. Clemesha’s Brooding Soldier was installed north of the Belgian village of Saint-Julien, at a place known as Vancouver Corner. It was on this battlefield that Canadian troops sustained the first gas attack on the Western Front and suffered 2,000 dead during the Second Battle of Ypres in April, 1915. It was also where Canadian Dr. John McCrae wrote his poem In Flanders Fields. The 11-metre Brooding Soldier was crafted of grey granite from France’s Vosges mountains. Rising from a rectangular base, the plinth transitions into the torso of a Canadian soldier, his helmeted head bowed, hands resting on his rifle in reverse arms. The clean lines complement the overwhelming sense of solemnity that pervades the memorial. At the formal unveiling, on this day in 1923, French General Ferdinand Foch paid special tribute to the Canadian soldiers who defiantly held the line during the gas attack. – Bill Waiser
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