Canada's New Law: What You Need To Know

Canada has recently introduced several new laws and proposed legislation to address a variety of issues, including online safety, medical assistance in dying (MAID), foreign interference, and economic growth. One notable piece of legislation is the Online Harms Act, which aims to combat online abuse and hate crimes by regulating social media platforms and imposing steep penalties, including life imprisonment for inciting genocide. Other recent laws include the Canadian Sustainable Jobs Act, which promotes economic growth and sustainable job creation, and amendments to the Canadian Human Rights Act to address hate speech and discrimination. Canada has also introduced legislation to counter foreign interference, protect medical assistance in dying eligibility for those with mental illnesses, and establish a national council for reconciliation with Indigenous peoples. These new laws demonstrate the Canadian government's efforts to address contemporary challenges and promote the well-being of its citizens.

The Online Harms Act

The Act would establish a Digital Safety Commission of Canada and a Digital Safety Ombudsperson of Canada, supported by a Digital Safety Office. The Commission would oversee and enforce the new regulatory framework, while the Ombudsperson would act as a resource and advocate for users and victims. The Act would also provide clarity on the application of the Act and set thresholds for regulated services.

• Intimate content communicated without consent (including deepfakes)
• Content that sexually victimizes a child or revictimizes a survivor
• Content that induces a child to harm themselves
• Content used to bully a child
• Content that foments hatred
• Content that incites violence
• Content that incites violent extremism or terrorism

Under the Act, persons in Canada would be able to make a complaint to the Digital Safety Commission that harmful content is accessible on a regulated service. When a complaint is made, the Commission would have to make a preliminary order to the operator to make the content inaccessible unless it determines that the complaint is trivial, frivolous, vexatious, or made in bad faith. The Act would also impose a general duty on operators to act responsibly and make harmful content inaccessible to all persons in Canada.

Protecting children from sexual exploitation

Canada has introduced several laws and initiatives to protect children from sexual exploitation, both domestically and internationally. Here are some key measures:

Online Harms Act

The Online Harms Act, introduced in February 2024, aims to create a safer online environment for all Canadians, especially children. This legislation holds online platforms responsible for addressing harmful content, including livestreaming and adult content services. It creates a new Digital Safety Commission to enforce the framework and a Digital Safety Ombudsperson to support users and victims. The Act also enhances laws to protect children from sexual exploitation by amending the mandatory reporting of internet child pornography.

Amendments to the Criminal Code

Canada amended its Criminal Code in 1988 to create new child sexual abuse offences and expand opportunities for courts to receive children's testimony in cases of child sexual abuse. The Criminal Code now includes 16 sexual offences that could apply to child sexual abuse, and it specifies that children under 12 cannot consent to sexual activity.

Bill C-15, Criminal Law Amendment Act

In March 2001, the Canadian government introduced Bill C-15, the Criminal Law Amendment Act, to better protect children from sexual exploitation. This legislation modernizes child pornography offences to address new technologies and ensures that offenders cannot hide behind the anonymity of the internet. The amendments also fulfill Canada's commitment to the United Nations to criminalize the export of child pornography.

Action Canada for Sexual Health and Rights (SHR)

Action Canada SHR is an organization committed to protecting children and vulnerable adults from sexual exploitation and abuse. They have a zero-tolerance policy towards violence, abuse, harassment, or exploitation of children. Action Canada SHR investigates any complaints and takes appropriate disciplinary action. They also recognize the diverse needs and intersectional circumstances of different communities.

National Strategy for the Protection of Children

The Canadian government has invested $39.7 million in federal funding to protect children and youth from online sexual exploitation through the National Strategy. This funding supports local Internet Child Exploitation Units in several provinces, enabling them to hire and train staff, and purchase specialized equipment for investigations. The government also leads awareness campaigns and provides educational resources to help prevent and address online child sexual exploitation.

Amendments to the Criminal Code

Canada has introduced several amendments to its Criminal Code in recent years, addressing various issues such as online safety, medical assistance in dying, firearms, foreign interference, and labour laws. Here is an overview of some key amendments:

Online Harms Act:

The Online Harms Act, introduced in February 2024, aims to combat online abuse and hate crimes. It requires social media platforms and other online service providers to remove harmful content within 24 hours, including intimate content shared without consent, content that sexually exploits children, bullying, hate speech, incitement of violence, and incitement of violent extremism or terrorism. The Act establishes a Digital Safety Commission of Canada to regulate online platforms and enforce compliance. It also simplifies the mandatory notification process for reporting online child pornography and extends the limitation period for prosecuting such offences to five years.

Medical Assistance in Dying (MAID):

Canada has made several amendments to the Criminal Code regarding medical assistance in dying (MAID). The most recent changes, introduced in February 2024, focus on postponing the expansion of MAID eligibility for individuals with mental illness as the sole underlying condition. This extension aims to provide more time for provinces and healthcare practitioners to prepare and ensure appropriate protections are in place. Previous amendments, such as Bill C-7 in 2021, revised the eligibility criteria and assessment process for MAID.

Firearms and National Security:

Bill C-21, introduced in December 2023, aims to address firearms violence and implement preventative measures. Additionally, the government has introduced legislation like Bill C-70 to counter foreign interference and protect Canada's national security. These reforms aim to address evolving threats and technological advancements, ensuring compliance with the Charter of Rights and Freedoms.

Labour Laws:

Canada has also amended the Canada Labour Code and the Canada Industrial Relations Board Regulations, 2012. These amendments prohibit the use of replacement workers during a strike or lockout and improve processes to protect public health and safety in such situations.

Changes to the Canadian Human Rights Act

On June 23, 2021, the Minister of Justice and Attorney General of Canada introduced a bill to better combat hate speech and hate crimes, provide improved remedies for victims, and hold individuals accountable for the harmful effects of the hatred they spread. The bill proposes to amend the Canadian Human Rights Act and the Criminal Code, with related amendments to the Youth Criminal Justice Act.

The Canadian Human Rights Act would be amended to classify hate speech as a discriminatory practice, allowing the Human Rights Tribunal to handle hate speech offenses. The Tribunal would be empowered to order the respondent to cease communication and, in some cases, pay monetary compensation and penalties. The Tribunal would also be able to award litigation costs against parties who abuse the process. The amendments would also provide additional remedies to address the communication of hate speech. The definition of "hate speech" would be based on Supreme Court decisions, clearly setting out what hate speech is and what it is not.

The Act broadly defines "social media services" as any website or application accessible in Canada, with the primary purpose of facilitating inter-province communication. All operators of social media services must cooperate with the newly established Digital Safety Commission of Canada, assisting the Commission in determining whether the service is regulated or not. The Act also clarifies that the mandatory reporting of internet child pornography legislation applies to social media services, simplifying the mandatory notification process and requiring additional disclosure in cases of manifestly pornographic content involving children. It extends the limitation period for prosecuting an offense to five years.

The bill still needs to be voted on by Canada's Parliament and studied by a parliamentary committee and the Senate, which may introduce changes to the final draft.

Tax changes

Canada has introduced several tax changes that will affect individuals and businesses. These changes are aimed at ensuring tax fairness and compliance, while also providing support to Canadians through various government programs. Here is a detailed overview of the recent and upcoming tax changes in Canada:

Recent Tax Changes:

• Capital Gains Inclusion Rate: The government has proposed a change in the capital gains inclusion rate, which will increase from one-half to two-thirds for dispositions occurring on or after January 1, 2026. This change will apply to capital gains realized in excess of $250,000 annually for individuals and to all capital gains realized by corporations and most trusts.
• Alternative Minimum Tax (AMT): Changes to the AMT calculation have been introduced for 2024 and later tax years, including an increase in the minimum tax rate and basic exemption threshold, as well as adjustments to the calculation of adjusted taxable income, special foreign tax credit, and minimum tax carryover.
• Canada Child Benefit (CCB): Starting in 2025, eligibility for the CCB will be extended for six months after a child's death if the individual claiming the benefit is otherwise eligible. This change is intended to support grieving parents and is expected to cost $15 million over five years, with ongoing annual costs of $4 million.
• Pension Contributions: As of January 1, 2024, workers aged 65 and older can choose to stop contributing to the QPP if they receive a QPP or CPP retirement pension. Additionally, the requirement to contribute to the QPP for workers aged 72 and older will end as of the year they turn 73.
• Short-Term Rental Expenses: Individuals can no longer deduct expenses related to non-compliant short-term rentals as of January 1, 2024. This includes all expenses, such as interest expenses, incurred after 2023 to earn income from operating non-compliant short-term rentals.
• Sharing and Gig Economy Reporting: New reporting requirements have been introduced for platform operators in the sharing and gig economy for the 2024 calendar year. This includes rental income from real or immovable property.
• Saskatchewan Provincial Corporation Tax: The lower tax rate of 1% has been extended until June 30, 2025, instead of returning to 2% on July 1, 2024.
• Zero-Emission Passenger Vehicles: The prescribed amount for zero-emission passenger vehicles (new and used) acquired on or after January 1, 2023, has increased to $61,000 before sales tax, up from $59,000.

Upcoming Tax Changes:

• Large Multinational Enterprises (MNEs): Effective for fiscal years starting on or after December 31, 2023, large MNEs with worldwide revenues exceeding €750 million will be subject to a 15% effective minimum tax rate, regardless of where their profits are earned.
• Interest Limitation Measures: These measures may lead to higher after-tax borrowing costs for some organizations and impact mergers and acquisitions (M&A).
• Mandatory Disclosure Rules and GAAR Amendments: The new rules and amendments can increase the risks associated with certain transactions, including large penalties of up to 25% of the tax benefit.
• Rental Housing Projects: An accelerated CCA rate of 10% under class 1 will be provided for new eligible purpose-built rental housing projects that begin construction after April 15, 2024, and before 2031.
• Property Additions: Immediate expensing (100% first-year deduction) will be provided for new additions of property to specific classes if acquired after April 15, 2024, and available before 2027.

Frequently asked questions