hazylavender/hi huggingface dataset:
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Gabriel Ste-Marie: during the first part of my speech, in March, I spoke in favour of this bill. It is a good bill. It is a step toward transparency that will help fight tax evasion and fraud. The bill is respectful of the provinces. In fact, Quebec's registry has been in place for almost a month. However, the tax cheats who were exposed in the Paradise papers did not create their shell companies in Canada; they created them in tax havens. The bill does nothing to address that. The work has only just begun. Cracking down on fraudsters who use tax havens requires a global registry--not just a registry of the real company owners, but also a registry of real beneficial owners of trusts. I am thinking, for example, of the real beneficial owners of the Isle of Man trusts that KPMG Canada created for Canadian tax evaders, the ones who were granted amnesty by the Canada Revenue Agency. It sounds like a huge undertaking, but it is not. In fact, this registry already exists to a large extent, and it is maintained, for one, in Luxembourg by a consortium of financial institutions. Even tax cheats like their banks to know they have assets somewhere; it is good for their credit. This registry is available to financial institutions, but not to governments that want to go after fraud. I think we can all agree that there is something wrong with that. Transparency, public registries and so on are excellent tools against fraud, but they do nothing against profiteers, against those who take advantage of all the loopholes in the Income Tax Act to use tax havens legally. Those individuals do not need to hide their income. All they need is a good accountant to make sure their income is not taxable, even when it is declared. The United States forced Canada's hand by imposing its idea of endorsing a 15% minimum global tax rate at the G20. The latest budget introduces Joe Biden's minimum global tax rate. Using tax havens will become less attractive, but the government is doing the bare minimum to fight tax havens. Income repatriated from tax havens that have information exchange agreements with Canada remains tax-free. This has to stop. Yes, we will support Bill C-42 , but it does not go far enough. A registry is good, but tax fairness is better.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Kevin Lamoureux: a part of dealing with the issue is bringing in legislation, but there are also budgetary measures that the government has taken in the last few years. We have beefed up the resources for CRA: A few budgets back it was close to half a billion dollars, and several hundred million dollars followed that. I am wondering if my colleague could provide his thoughts. Yes, the legislation is really important, but along with that legislation one has to establish, as we have, the financial resources, in good part, to be able to deal with the issue at hand.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Gabriel Ste-Marie: I have a simple answer: Yes, but all that is not enough. I want to talk about the example I gave at the end of my speech. In committee we looked at the issue of who really profited from the Isle of Man trusts created by KPMG for Canadian tax cheats. We worked for a long time on that issue. In the United States, when the same thing was done, there were investigations, criminal prosecutions and even jail time. The IRS, the Canada Revenue Agency counterpart, put a stop to it. Here, there have been no criminal prosecutions and no jail time. Even though we have laws, even though we have the funding, we do not have the will. The minister refuses to use her discretionary authority to make the CRA do more. We must change the way things are done by this government and the CRA, because we can see that our laws and funding are still not enough.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Jean-Denis Garon: allow me to return to the KPMG issue and the tax fraud scheme for which it faced criminal charges in the United States but was cleared of wrongdoing by the Canada Revenue Agency. At the time, we reminded the Minister of National Revenue that she had the power, by law, to launch an investigation that would have been led by a Tax Court of Canada judge. The minister still insists that the CRA is independent and that she cannot launch an investigation. Clearly, she is unfamiliar with the law. Despite all these lofty legislative initiatives, I wonder what my colleague thinks about the message this is sending about Canadian leadership in fighting international tax fraud.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Gabriel Ste-Marie: I thank my colleague and friend from Mirabel for the question. The minister came to committee and told us that she did not want to get involved in this, that she considered the Canada Revenue Agency to be independent. However, Mr. Lareau, a global tax expert, came to committee and told us that the minister was the only person in the country who had the power to launch an investigation. She has the power but is choosing not to use it, while the government is choosing to leave her in her position. It is not good enough, and it is unacceptable. We are seeing some progress being made worldwide under the leadership of the United States. The Biden administration is saying enough is enough. The wealthy need to pay a minimum of 15%. Now the G20, the OECD and other groups of rich countries are following suit. From day one, Canada has systematically been lagging behind others. It also does the minimum and maintains this system of impunity. The message being sent to KPMG and potential beneficial owners is that there will be no consequences if they try; at best, they will pay less taxes, at worst, they will have to pay it back. The message that is being sent is unacceptable.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Brad Vis: we know that the federal registry is not enough to fight money laundering because most small and medium-sized businesses in Canada are regulated by the individual provinces and territories. Does my Bloc Quebecois colleague think that the Government of Quebec could enter into an agreement with the federal government to improve the federal level's capacity to fight money laundering while respecting Quebec's jurisdictions?
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Gabriel Ste-Marie: I thank my hon. colleague for his question, which he asked in excellent French. I really appreciate that. In my opinion, what we are seeing in this bill is a possible harmonization with the provinces. It seems to be respectful of the rights of the provinces. For example, Quebec has had its own registry for a month now. This will require collaboration and information sharing, as with all countries around the world, but things seem to be on the right track. Obviously, we must always do more to fight against money laundering, and our job is to remain vigilant to ensure that everything works well and that we can do more.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Kevin Lamoureux: creating a public, searchable corporate registry would ensure a much higher sense of accountability, and the government over the last number of years has expressed its interest in ensuring that everyone is paying their fair share when it comes to taxes and that there is more transparency. However, it is also important to recognize, as I did in the previous question I asked the member's colleague, that there have been significant amounts of financial resources allocated to the CRA. That money is there to support the idea of looking at who the people are who are paying taxes. I am wondering if my colleague could provide his thoughts. It is great that Ottawa is doing it and the Province of Quebec is moving forward on it, but it is really important that we see consistency from coast to coast, with other provinces and territories also providing similar legislation.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Sebastien Lemire: everyone must collaborate, but the federal government must show leadership and set an example on the international stage. It must send the message that it will no longer tolerate tax havens and fraudulent actions. For me, that is a problem. Let us take the Panama papers, for example. Quebec showed leadership. It recouped more money than the federal government, so yes, collaboration is important. I have looked at Quebec laws. The co-operative financial sector, Desjardins for example, is governed by Quebec's laws, and I find that it is much more effective in fighting these types of situations. There are things to think about, of course, but the federal government must be able to set the example and put an end to tax fraud.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Brad Vis: I know that the Bloc Quebecois will be supporting this bill. I would like to know if they are open to accepting some amendments to protect the privacy of small and medium-sized businesses and individuals, in certain cases, and to create more rules so that this work is not left to the civil servants after the bill is passed. Is the Bloc Quebecois open to protecting confidentiality in some cases?
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Sebastien Lemire: I cannot help but think of a debate that my colleague raised in the Standing Committee on Industry and Technology. The question was whether we were entitled to know the details of an $8-billion to $13-billion federal investment in a Volkswagen project. That element of transparency was at the heart of our discussions. I can also draw a parallel with sport. Confidentiality agreements keep athletes silent and force them to keep quiet when they are victims. Confidentiality is a very delicate issue. It is always arbitrary. I think we need to be able to really reflect on that. I am counting on my colleague to bring experts on this issue to committee so that we can come to an agreement and come up with the best possible amendments to this legislation, to make it as robust as possible.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Alistair MacGregor: my colleague very clearly outlined the problems and what more needs to be done, especially by Canada and the international community, about the sheer amount of wealth we lose out on every year to tax evasion and dirty money funnelling through the system. One of the parts in the bill to ensure compliance is a $5,000 penalty for corporations and up to $200,000 for individuals. I respect the fact that the legislation is trying to uncover the identity of the individual, but what does the member think about the paltry $5,000 fine for corporations? We know there are lots of avenues open to people to hide their wealth in corporate structures. Does he think that this particular financial penalty may need to be looked at and perhaps stiffened to ensure better compliance with the legislation?
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Sebastien Lemire: I think harsh penalties are needed. We must not give criminals a chance in life. Like my colleague, I am a progressive person who believes in sharing the wealth. It is pretty rich for the federal government to claim that it cannot provide decent health transfers because it does not have the money. We know where that money is. At the end of day, it means that our seniors, people aged 65 and older, cannot increase their income, and it means that our emergency rooms are overflowing. That is because our money is sitting in tax havens. Firm action is needed.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Kevin Lamoureux: I appreciate a number of the comments the member has made. The issue of tax fairness is really important to Canadians. It is one of the reasons why one of the very first actions this government took upon being elected back in 2015 was to establish an increase in the tax on Canada's wealthiest 1%. We see that as a very strong positive. At the same time, we enhanced the tax break for Canada's middle class and those aspiring to be a part of it. Through the years, we have been able to invest a great deal of money, in the hundreds of millions of dollars, to ensure the CRA has the financial resources to reinforce the issue of tax fairness and go after individuals who are trying to avoid paying taxes. What are the member's thoughts with respect to other provincial legislatures across the country and the important role they play in passing legislation of a similar nature?
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Daniel Blaikie: as I was saying in my concluding remarks, it is very important that the provinces be on board. Many provinces are showing leadership already. I think it is one of the virtues of the way the government is proceeding on this that provinces will be able to onboard and provide information out of their own registries into the federal registry. I understand there has been a lot of discussion between the federal government and the provinces. What I would say with respect to the tax fairness points that my colleague raised is simply this. As Canadians, we look around at other jurisdictions and see revelations like the Panama papers and others. We hear the government talk about investing in recovering some of those funds, but the record is that Canada has not and other jurisdictions have. When we hear about the resources given to the CRA, they seem to be spent more on chasing the poor to recover CERB funds, which they were encouraged to get by this very government, while the big tax cheats are getting away with it, either through tax havens or through the Canada wage subsidy program, from which the government has not even deigned to try to recover a dime.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Daniel Blaikie: one thing that has emerged from debate in the House is that the question of stacked ownership structures is something we need to look at. I will not prejudge the outcome of that study by already thinking I know the answer to that, but I certainly think this is something the committee should be looking into. I hope that, in its wisdom, the committee will find some recommendations that make sense and can improve the bill in that regard.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Jean-Denis Garon: in the past, it has been common for the government to pass imperfect but still useful legislation and then tell us that it has done everything it can, it has taken action and there is nothing left to do. This was true in the case of the whistle-blower legislation, which was passed 17 years ago. It is full of flaws, but for 17 years, we have been told that the job is done, even though there is no protection. I have a question for the member for Elmwood--Transcona. Once we pass the bill that is before us today, will the job be done? What are the next major steps for the government if it really wants to get tough on tax evasion, especially internationally?
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Daniel Blaikie: the short answer is no. The work will not end with the passage of this bill. I would say it is not a matter of resources, because the Canada Revenue Agency has a lot of resources, but rather a matter of resource allocation. The agency is heavily focused right now on recovering CERB overpayments from Canadians who are already experiencing financial hardship. When it comes to the high rollers with deep pockets, however, the agency leaves them alone. It really is a resource allocation issue. The Agency needs to focus on these high rollers. It has to stop chasing after people who do not have the means to repay the CERB--that is not a wise investment. It should be chasing down people who have the money to pay back what they owe.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Alistair MacGregor: I really appreciated my colleague's remarks regarding the Conservatives' crusade against carbon pricing, because he is right. If we were to get rid of carbon pricing tomorrow, it would do nothing to change the structural deficit that exists in our economy and the fact that we have a system today where 40% of Canadians control 1% of the wealth, and 1% of Canadians control 40% of the wealth. There has been a massive hoovering of wealth from a large group of Canadians to a very small group. That is why we need a beneficial registry; we need to see who is benefiting from these obscene amounts of wealth. Over the decades that this has been occurring, what has that structural deficit led to? What could Canada of today have been had we tackled these problems several decades ago? What does that mean to people's overall health, their well-being and their ability to access services? This is the structural problem that is fundamental to our policy direction today.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Daniel Blaikie: one of the big watershed moments was in the mid-1990s when the federal government decided to cut services massively and pushed the burden of spending down onto provinces. Many of them then pushed it down onto municipalities, and ultimately it has landed on the shoulders of Canadians because we do not have the same level of funding of social infrastructure that we had over 30 years ago in Canada. If we look at the corporate tax rate, in the year 2000 the corporate tax rate was 28% and today it is 15%. If we look at the percentage of government revenue that is paid by large corporations, that is down in proportion. Conservatives and Liberals both said that they were going to cut corporate taxes and that it was going to allow business owners to invest in their businesses, it was going to raise productivity and it was going to generate a lot more economic activity than would holding the corporate tax rate where it was to be able to fund social services. However, a common complaint of Conservatives these days if we listen to them at committee, as well as private sector economists and a lot of people in the business sector, is that Canadian business investment is pathetic compared to our peers and our productivity is not keeping pace, because that money was never invested back into their businesses. It was shunted out into tax havens or paid out in dividends, which, frankly, are not taxed enough, and all sorts of other things. Therefore, the promise of the big tax cuts for the fat cats never came home to roost. This is why we should change what we are doing instead of doing the same thing and hoping for different results.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Mike Morrice: we have heard from many across the country that one of the ways to address the $30 billion in corporate tax loopholes from last year alone is to put in place a minimum tax on reported profits; that is, the profits that some of the largest corporations in the country report to their shareholders. Canadians For Tax Fairness estimates that this could recoup $11 billion of that $30 billion every year. The governing party chose not to do that in budget 2023. Could my colleague from Elmwood--Transcona share more about that?
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Daniel Blaikie: we absolutely need to be engaging in the enterprise of trying to ensure that this tax revenue is not lost, to go out of the country or to go to people who already own and control 40% of Canada's wealth as part of that small 1%. I have a private member's bill requiring that if people want to benefit from the tax advantages of these tax treaties that Liberal and Conservative governments have put in place over the years, they have to have some economic substance to their business. Right now, what counts as a business is just a business number and a small mailbox somewhere in Barbados. Requiring that business to actually have something like a manufacturing facility or a desk and a computer with somebody hired to do some work seems like a pretty bare-minimum requirement for any legitimate business. There is what my colleague suggested, and then there are some other ideas about how we can ensure that people are not just paying a lawyer somewhere else to set up a fake company in order to get massive tax benefits.
Canada Business Corporations Act
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Ms. Marilyn Gladu: I apologize. The price of a home under the Liberals has doubled, and many Canadians have entirely given up on the dream of home ownership. Most young people now believe that owning a home is unachievable. Even if the money-laundering problem is adequately combatted by the passing of this bill, it is years too late. Therefore, it is not enough to stop the snow-washing in our housing market that is escalating costs for Canadians. I have concerns about the bill; not only does it exclude real estate in the scope, even though we know that this is a major place for money laundering to happen, but it also covers only federally regulated businesses. Many business owners are provincially regulated, so if the provinces do not come on board, then there are many ways that this could slip through the cracks. In terms of amendments, Conservatives would like to see amendments to protect privacy rights in the registry. We also want the registry to achieve the government's stated goal and have the capacity to do so. Will the bill give law enforcement enough necessary tools to capably combat money laundering and terrorist financing? Conservatives have some recommendations. The new and existing penalties for violating reporting requirements under the CBCA should be strengthened, corporations should be held accountable as individuals, and if the act is violated, there needs to be clarification on who can and cannot be exempted from the regulations. This bill is a critical update to our laws, and I look forward to seeing it at committee, where we can make amendments to improve the bill and eliminate money laundering in Canada.
National Day of Mourning
Date: 2023_04_28
Chamber: HOUSE OF COMMONS
Mr. Mike Morrice: today marks the National Day of Mourning for workers killed, injured or made ill by workplace conditions and hazards. In 2021, over 1,000 workplace deaths were reported in Canada, with 18 of them being young people from communities across the country. We must put health and safety at the forefront of all jobs to prevent further work-related injuries and loss of life. To start, we know a unionized job is a safer job. Collective bargaining and the right to strike are fundamental rights. These rights are central to our democracy and have resulted in improved working conditions for all workers.  I would encourage all my colleagues to read and press for the recommendations of the Canadian Labour Congress to ensure every worker in Canada is safe. While we pause today to honour and remember each life tragically cut short, let us also continue to push for better.