Mr. Gabriel Ste-Marie: Thank you, Mr.Chair. In an interview with Grald Fillion, tax expert Andr Lareau, who specializes in tax havens, pointed out that $350billion Canadian is parked in just 12tax havens. Companies are using tax havens for financing, operations and intellectual property activities. Mr.Lareau also notes that the government is aware that all of this Canadian money is stashed in tax havens but is doing nothing about it. He said that it's time for Canada to tackle the problem given that it has a $250-billion deficit, and that if it doesn't act now to change things, it never will. Is the government going to seize this opportunity to outlaw the corporate use of tax havens?
Hon. Diane Lebouthillier (Minister of National Revenue) : Mr.Chair, as soon as we took office, in 2015, our government made cracking down on tax evaders in Canada and abroad a priority. That's precisely why we put nearly a billion dollars towards that effort. I realize that my fellow member is impatient, but he has to understand that this is a very complex issue. Under our leadership, in three years, the Canada Revenue Agency has undertaken twice as many audits related to offshore tax evasion as it did in the 10years the Conservatives were in power. As we speak, the agency is conducting more than 50criminal investigations tied to international tax evasion. I repeat, this is a top priority for our government.
Mr. Gabriel Ste-Marie: You're right, I am very impatient, because whenever I bring up the fact that companies are using tax havens legally, the minister misses the point and tells me that she is going after fraudsters. I am talking about the legal use of tax havens by companies. Since Parliament began sitting virtually, it's been mentioned a few times that Denmark and Poland have decided to deal with the issue. Even France's finance minister, Bruno LeMaire, said that companies with subsidiaries in tax havens would not be eligible for public assistance. We hear thePrime Minister and other government officials say all the time that the wage subsidies are going to workers, so I'd like to cite another examplebanks. The government is injecting huge amounts of cash into the financial system and repurchasing troubled assets in massive quantities, and yet, the five major banks in Toronto, alone, are continuing to save billions of dollars every year by artificially redirecting their profits to tax havens. This is unacceptable. This has nothing to do with wages for workers, and everything to do with the repurchase of troubled assets, cash flow and billions of dollars that the government could be going after. Is the government going to seize this opportunity to make the corporate use of tax havens illegal?
Hon. Diane Lebouthillier: Mr.Chair, our government is taking unprecedented steps through the Canada emergency wage subsidy measure to support businesses and workers affected by COVID-19. This is largely a trust-based program, and we will not tolerate abuse. Anyone who tries to bypass the rules will face serious consequences. Applicants have to designate an individual to attest to the truth of their claim. What's more, any employer receiving the subsidy who is deemed ineligible will have to repay the full amount. Anyone who abuses the program could face a fine of up to 225% of the wage subsidy amount and up to five years in prison. The Canada Revenue Agency also has a myriad of tools at its disposal to detect a fraudulent claim. As I mentioned, cracking down on tax evasion is a priority for our government.
The Chair: Mr.Ste-Marie, you have about 30seconds to ask your question, and about the same for the answer.
Mr. Gabriel Ste-Marie: Thank you, Mr.Chair. That's an excellent answer, but it has nothing to do with my question. The Minister of Finance has the power to fix the problem now. Although completely immoral, the use of tax havens by companies is legal under section5907 of the Income Tax Regulations. Through simple regulatory amendments, the finance minister could put an end to this kind of abuse. We are going to have a $250-billion deficit to pay off, and everyone is going to have to chip in, including the rich who are currently taking advantage of the system.
Hon. Diane Lebouthillier: Mr.Chair, thanks to a historic billion-dollar investment, our government has given the agency the resources it needs to do the job, and we are starting to see results. I set up an expert advisory committee to provide us with guidance and recommendations. We tightened the rules for the voluntary disclosures program. We signed tax information exchange agreements with a number of countries. We audit four jurisdictions a year. We also work closely with the OECD.