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Results: 101 - 200 of 302
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his important question.
As I said, I've been determined since the start of my mandate to ensure that Canadians are treated fairly and equitably and that everyone pays their fair share. I'd also remind you that all tax files are different, some are simpler, others more complex. The complexity and scope of information requests influence the agency's approach. People who can't meet a deadline set by the agency may communicate with it and explain their situation. Those explanations are taken into account.
View Diane Lebouthillier Profile
Lib. (QC)
I'm telling you, I'm repeating to you, and I will repeat indefinitely that, as far as I'm concerned, everyone will be treated fairly and equitably.
View Diane Lebouthillier Profile
Lib. (QC)
Sir, if you came and visited my riding, given my reputation there, everyone would tell you that I treat people fairly and equitably. It's a point of honour for me.
View Diane Lebouthillier Profile
Lib. (QC)
I can tell you that our government has made historic investments in the fight against tax evasion. We're the first government that has invested nearly $1 billion in the fight against tax evasion. Furthermore, under our leadership, the agency has hired 1,300 auditors and conducted twice as many audits relating to offshore activities as were done under the Harper government.
View Diane Lebouthillier Profile
Lib. (QC)
Federal tax amounts associated with convictions have increased from $12.5 million in 2014-2015 to $45.4 million in 2017-2018.
View Diane Lebouthillier Profile
Lib. (QC)
I'm going to turn the floor over to the commissioner. He can answer your question.
View Diane Lebouthillier Profile
Lib. (QC)
As I told you, we've hired 1,300 new auditors and conducted twice as many audits as the Harper government did in the 10 years of its mandate.
View Diane Lebouthillier Profile
Lib. (QC)
The Canada Revenue Agency is currently conducting audits in more than 1,100 cases and criminal investigations in more than 50 offshore tax evasion cases. Our plan is working, and we're starting to see results.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his important question.
According to my information, the Canada Revenue Agency has identified more than 3,000 foreign entities associated with more than 2,600 owner beneficiaries who have connections with Canada, and it has already audited 80% of them. We have chosen to tighten the rules of the voluntary disclosures program, the VDP, to prohibit access to taxpayers who are named in the Panama Papers or in information leaks.
Under my leadership, we have struck a committee to determine how to tighten the agency's rules in tax evasion cases as well as the rules of the VDP. In the first year of my mandate, we began to review four countries a year under country-to-country agreements. When the agency intervenes with respect to a country, people who have assets in that country no longer have access to the VDP.
So we're doing everything necessary to ensure all taxpayers pay their fair share. I've said this, and I'll repeat it: we've given the agency tools to tighten the vice. I invite people to disclose their information voluntarily before the agency begins looking into what's going on in a particular country as part of the country-to-country exchange of information.
View Diane Lebouthillier Profile
Lib. (QC)
Pardon me, but I'd don't really understand your question.
View Diane Lebouthillier Profile
Lib. (QC)
Yes, indeed. I want to remind everyone here that Jean-Pierre Blackburn, a Conservative who was Minister of National Revenue, said that efforts to counter tax evasion were not a priority for the Conservatives when they were in power.
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Chair, I'd simply like to say this to my colleague Mr. Poilievre: I get up at 4 a.m.; if you had held a meeting at 6 a.m., it would've been a pleasure for me to spend more time with you.
View Diane Lebouthillier Profile
Lib. (QC)
I have another meeting at that time.
View Diane Lebouthillier Profile
Lib. (QC)
Hello everyone, and thank you for the opportunity to appear before the Standing Committee on Finance to discuss the main estimates.
I would also like to thank the agency’s four assistant commissioners who are with me today: Ms. Kami Ramcharan, Mr. Ted Gallivan, Mr. Frank Vermaeten, and Mr. Geoff Trueman.
At the Canada Revenue Agency, putting tools and services into the hands of Canadians, so that they can easily file their taxes and receive the benefits to which they are entitled, is what drives the work we do.
As Minister of National Revenue, I made a commitment to the Prime Minister on behalf of all Canadians to adopt an approach focused on our clients, the Canadian people.
The needs of Canadians and the environment in which the agency operates are constantly changing. That’s why the agency must adapt and improve its services on an ongoing basis. This is true both for people who file electronically and for those who file on paper. Regardless of how Canadians choose to interact with the agency, we have made improvements.
Allow me to list some of the ones that are already benefiting millions of Canadians.
More and more Canadians are filing their taxes online. This year, more than 90% of the approximately 24 million returns Canadians filed were completed online. My Account, the agency’s digital portal, now has more than 7.9 million users.
Enhanced digital services, such as Auto-fill my return and Re-FILE, allow Canadians to file or edit their tax returns online.
You may also have noticed that you can now access your notice of assessment instantly. In fact, the Express Notice of Assessment is now available in certified tax software.
The agency is also simplifying its communications. Indeed, providing Canadians helpful information depends on the use of clear, simple, easy-to-understand language. In 2017, the agency simplified the language it uses in most of its correspondence to Canadians. The Clerk of the Privy Council, in his 25th report on service excellence, commended the agency for this effort.
Responding to the questions of Canadians is also a key service that the agency must absolutely provide by phone. That is why we have an action plan to improve the quality of the services that our call centre agents provide. During the recent tax-filing period, the agency hired additional agents, and more than 3,000 of them were able to answer questions from Canadians.
In addition, we have increased the number of self-serve options to help callers get the information they need more quickly and easily. These improvements and other new measures, such as better training for agents and the implementation of a new telephone platform, will allow more callers to have access to telephone queues, which means fewer lines will be busy.
As I mentioned earlier, it’s also important to continue meeting the needs of Canadians who use traditional methods to file their taxes. This year, we’ve made it easier for those who choose to file on paper to do their taxes by mailing approximately two million forms and guides directly to them.
In addition, people can now make tax payments in person at any of the 6,000 Canada Post outlets. This new in-person payment service makes life easier for taxpayers who live in remote areas and who may not be close to a bank or have easy access to Internet service.
Another new telephone service that was launched this year is File my Return. This service helps Canadians with low or fixed incomes, whose situations remain unchanged from year to year, to file their income tax returns by answering a few questions through an automated phone service. This year, we sent out more than 950,000 invitations to Canadians who may be eligible for this new service.
Lastly, I’d also like to highlight the important work done by volunteers from the Community Volunteer Income Tax Program, the CVITP. This program has been around for a long time, helping eligible people who have modest incomes and simple tax situations file their returns. The funding announced in Budget 2018 will allow the program to open more year-round tax preparation clinics, which will help more Canadians access the benefits to which they are entitled.
To conclude, I’d also like to briefly touch on the agency’s recent accomplishments in fighting tax evasion and aggressive tax avoidance. The agency has taken concrete and effective steps to crack down on tax cheats. It has broadened the scope of its tools for improving its risk assessment systems. It can now assess the risks associated with all multinationals every year.
These improvements, as well as those made to other systems, provide the agency with more relevant information to better identify large businesses and individuals who may be participating in aggressive tax avoidance schemes or avoiding tax laws.
Moreover, with the implementation of country-by-country reporting, as of this year, the agency will automatically have access to information from other jurisdictions. As of March 31, 2018, audits of more than 1,112 taxpayers were underway with respect to offshore non-compliance, and the agency was conducting criminal investigations into over 42 tax evasion cases. In 2016–2017, the agency’s efforts resulted in 37 convictions, over 50 years in jail terms, and $10 million in fines imposed by the courts.
And I’m pleased to inform the committee that the fiscal service improvements offered to Canadians will not stop there, because this is an ongoing process. The agency must absolutely ensure that Canadians receive the benefits to which they are entitled. That is my priority. Budget 2018 announced the implementation of a measure to automatically register individuals for the Canada Child Benefit. Accordingly, I am pleased that approximately 300,000 additional low-income workers will receive the benefit.
Let me end by saying that improving service delivery to Canadians will continue to drive our efforts. This will ensure that Canada’s tax system is fair, helpful, and easy to use.
I will now yield the floor to Ms. Ramcharan, who will speak about the main estimates.
Thank you for your attention.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for her question.
To begin with, I would say that our government is the one that has decided to invest in fighting tax evasion and tax avoidance. The budgets allocated in 2016, 2017 and 2018 to fight tax avoidance and tax evasion amount to nearly $1 billion. Over the past two years, we’ve been working to create a structure that will allow us to fight tax evasion and tax avoidance.
Auditors are currently being hired. The Canada Revenue Agency is able to assess 100% of large multinationals. I would also like to thank the committee, which recommended tightening the rules regarding the voluntary disclosures program. That is being implemented. Thank you very much for your recommendations.
We have also targeted four countries a year, we work with the OECD, and we have signed more than 60 information disclosure agreements, country by country.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you for your question.
As mentioned in my mandate letter, customer service is a priority for our government. Budget 2018 will allow us to make concrete improvements through investments of more than $200 million in agency services. This considerable amount of money has allowed us to make significant improvements to the Community Volunteer Income Tax Program.
I had the opportunity to tour the offices of the Canada Revenue Agency, and everywhere I stopped, I made a point of meeting the volunteers. They mentioned that they had been left to their own devices and had received little support over the years. This has become a priority for me. As we know, volunteers work with the most vulnerable. We will therefore continue to work towards that end and take into account the information provided by volunteers across Canada.
Furthermore, thanks to new investments, we are working to modernize our digital and telephone services. We have restored postal service for seniors. Many people live in the regions and don’t have access to Internet. I think it’s very important to invest in services, contrary to the previous government, which had decided to reduce them.
View Diane Lebouthillier Profile
Lib. (QC)
As I mentioned earlier, our government is really the one that invested in call centres. I did a tour of Canada Revenue Agency offices across the country. I’ve met with employees over the past two years. When the Auditor General tabled his report to the agency, I wasn’t at all surprised to learn what was going on, because staff had already told us about the outdated system and the absence of investment under the Conservatives.
Implementing a telephone system that meets customer demand and providing training to employees will allow us to deliver the quality services Canadians expect.
View Diane Lebouthillier Profile
Lib. (QC)
The plan was proposed to the Auditor General when he tabled his report. As I mentioned earlier, we are currently working on a telephone system, which should be in place, as I mentioned earlier, in 2018-2019. We’ve hired new employees and training will be provided.
View Diane Lebouthillier Profile
Lib. (QC)
Our government is committed to respecting and renewing our relationship with indigenous peoples, which, in its opinion, is our most important relationship. It is also important that Northerners receive the credits to which they are entitled.
I met with several aboriginal communities in the Northwest Territories. We have adapted our communications products to Northerners and are working in partnership with Service Canada. We also visited 698 aboriginal communities across the country to share information on benefits.
View Diane Lebouthillier Profile
Lib. (QC)
I asked the agency for more information about what the people of the Northwest Territories had asked my department when I went to meet with them.
View Diane Lebouthillier Profile
Lib. (QC)
I don’t understand your question.
View Diane Lebouthillier Profile
Lib. (QC)
As I mentioned, the recommendations in the Auditor General’s report didn’t surprise me. In fact, when I met with the Auditor General, we were already working on an action plan to modernize telephone services, provide staff training and meet the standards that Canadians expect from the agency.
As for the much more technical details, I’ll ask Mr. Vermaeten to answer you.
View Diane Lebouthillier Profile
Lib. (QC)
I’m happy to give you that.
In 2016-2017, there were 37 convictions, resulting in more than 50 years of prison time and $10 million in court-imposed fines.
View Diane Lebouthillier Profile
Lib. (QC)
It’s related to tax evasion. If you want more technical information about tax evasion and what that means, Mr. Gallivan can tell you more.
View Diane Lebouthillier Profile
Lib. (QC)
Our government is the one that has invested the most to fight tax evasion and tax avoidance. As I mentioned, it might be interesting for you to have a little more information instead of talking through your hat. So I’m going to ask Mr. Gallivan to explain what tax evasion and tax avoidance really are.
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Gallivan will answer your question.
View Diane Lebouthillier Profile
Lib. (QC)
We’ll give you the right information. Take the time to listen to what Mr. Gallivan has to say.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
The last three budgets have really allowed us to create a whole structure to deal with tax evasion and aggressive tax avoidance. As I mentioned, tackling aggressive tax avoidance was not at all a Conservative priority. In fact, Mr. Jean-Pierre Blackburn, a former Minister of National Revenue, even said publicly that this was not a priority for the Conservative government.
Our government is really the one that has invested the most in fighting aggressive tax avoidance. I had the opportunity to meet with our OECD partners in Paris during the winter. The OECD commended us for the agency’s exceptional work. In the fall, Canada will even host the second OECD meeting on large businesses.
View Diane Lebouthillier Profile
Lib. (QC)
I would ask Mr. Gallivan to give you some technical details on that.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
I know full well that living with a disability is very complicated, for the person with the disability, and for the family living with that person. I want to make it clear that the act has not been amended. Exactly the same law applies.
The review we are conducting is drawing to a close. We will submit the data to the committee—I’m talking about the committee you abolished in 2006 and which was reinstated—at its next meeting. Then I’d be happy to provide you with that information.
View Diane Lebouthillier Profile
Lib. (QC)
Committee members will be the first to receive that information from us. We can send it to you after that.
We do this out of respect for the committee members who are involved, who are dedicated to working on this update and who provide us with recommendations on the disability tax credit.
View Diane Lebouthillier Profile
Lib. (QC)
You’re asking me about the Phoenix system, but with regard to the Revenue Agency...
View Diane Lebouthillier Profile
Lib. (QC)
Thank you for your question.
I did, in fact, travel to the Yukon, the Northwest Territories and Nunavut to meet people. I can’t give you any statistics at this time, but I’ve asked the Canada Revenue Agency for more information on this. Indeed, all the people I met during my tour are concerned about this issue. Moreover, I made a public announcement on CBC that I was taking into account what people had told me and that we were going to ask the agency about it.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
As a single mother myself, I know full well what single mothers experience. I’ll say it and say it again: it’s important that people get the services to which they are entitled.
If you have specific cases to submit, you can send them to my team. I’ll make sure that the rules are respected.
View Diane Lebouthillier Profile
Lib. (QC)
In a previous life, I was a social worker. I’ve always worked for the less fortunate and those who need the services to which they are entitled. As Minister of National Revenue, I can tell you that I’ll be there for the poor and those who need help and support. I’m telling you and I’m telling you again, if you have specific cases to submit, I would like to receive them. I’ll make sure that those people get the credits to which they are entitled.
I’m going to ask Mr. Vermaeten to give you some technical details.
View Diane Lebouthillier Profile
Lib. (QC)
I’m going to ask Mr. Vermaeten to really explain the process.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for her question.
As I mentioned, the Auditor General’s report didn’t surprise me at all. We made a major change at the Canada Revenue Agency to improve services and ensure that employees develop skills in much more specific areas. In 2016, we implemented what we called service renewal. Changes were made at the Canada Revenue Agency. More specialized services have been centralized in various offices. Instead of dealing with generalist staff spread across the country, people will be able to use these specialized services and get much better information.
Agency employees work very hard. I really want to congratulate them on everything they’ve done in terms of service renewal. The agency’s 40,000 employees contributed to this effort. Phenomenal work has been done since 2016.
Mr. Vermaeten may want to add to that.
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Chair, I appreciate the opportunity to participate in the committee's study of supplementary estimates (B).
I am joined by Commissioner Bob Hamilton, who will speak to you more about this and other topics following my remarks.
I’d also like to introduce three senior officials from the Canada Revenue Agency: Janique Caron, Acting Assistant Commissioner, Finance and Administration Branch; Ted Gallivan, Assistant Commissioner, International, Large Business and Investigations Branch; and Frank Vermaeten, Assistant Commissioner, Assessment, Benefit and Service Branch.
I would like to start by providing members with an overview of some recent achievements following the second year of my mandate as Minister of National Revenue.
First, the Government is steadfast in its efforts to crack down on tax evasion and combat tax avoidance. We will increasingly identify aggressive tax planning schemes that are not in the spirit of the Income Tax Act.
The Government has invested nearly $1 billion in Budgets 2016 and 2017 to address this complex problem that is taking resources away from the services that improve the standard of living of all Canadians.
The Agency’s auditors now have access to more and better refined information, which helps them to focus on the individuals and corporations that actively seek to avoid paying their fair share of taxes.
Second, we have strengthened our partnerships and cooperation with international governments. The results speak for themselves: The Agency is currently conducting more than 990 audits related to offshore financial structures. It is investigating more than 42 corporations and individuals with offshore accounts. The Agency has also imposed $44 million in penalties on promoters and tax preparers.
Third, regarding our work to improve support for indigenous peoples and people living in remote communities, the Agency is working hard to keep the government's promise. It is increasing its outreach efforts to make these individuals aware of the benefits available to them, and reducing the challenges associated with filing their tax returns.
This past October, in Yellowknife, I announced the Agency’s Northern Consultations Action Plan. This plan outlines actions over the next two years to improve the Agency’s services for northern residents.
My main objective is to improve the client experience for Canadians who access tax services. Canadians communicate with us in good faith. They are important clients, not just taxpayers. They deserve to receive quality services in a timely manner. In order to improve the customer experience, here are some of the latest service improvements from the Agency.
The Agency has introduced enhanced electronic processes for filing tax returns, such as information auto-fill. This secure service allows Canadians to automatically fill in parts of their income tax and benefit returns with information that the CRA has available at the time of filing the return.
Last year, more than 86% of Canadians filed their taxes electronically, almost 750,000 more than the year before.
In 2017, the Agency has taken steps to improve and modernize its call centre services. We have hired more agents and we have increased self-serve options, leaving more time for agents to provide the answers to more complex questions.
The Agency is also in the process of upgrading its call queue technology, and enhancing its training programs to ensure our clients receive the quality service they deserve.
While I am proud of these accomplishments, I fully recognize that there is still work to be done. This week's Auditor General's report was clear, and I accepted all of his recommendations regarding our call centres.
In our first Budget, our government invested $50 million over four years to improve the range of services we provide to the public. Starting this year, our clients will begin seeing the results of these investments.
Rest assured, we are listening to Canadians.
We know we must explain the Agency’s actions as clearly as possible so that its intentions are not misinterpreted.
We are seeking advice from Canadians to ensure that the Government’s programs and services are tailored to fit those who need them. We encourage Canadians to enter into a dialogue with the Agency to share their concerns.
Today, I also announced that we have re-instated the Disability Advisory Committee. This committee will be made up of 12 members with different backgrounds; they will work with the Agency in order to come up with recommendations so that it can administer disability benefits in a more fair, more transparent and more accessible manner.
Outreach and consultation are key, and the Agency will continue to work with Canadians to ensure their views are incorporated into the decisions it makes.
Mr. Chair, I will now yield the floor to Commissioner Hamilton, who will speak to the Supplementary Estimates (B) and other matters of interest to the committee.
I thank you for inviting me to speak with you today.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you for your question. I would also like to thank you for taking the time to meet with me. I know that you are a dedicated advocate for Canadians living with diabetes as well as for your constituents in Brampton South. My English isn't so good, so please accept my apologies, as I will continue in French.
First, I would like to point out that we have met with people from Diabetes Canada, Diabetes Quebec, and the Juvenile Diabetes Research Foundation to find out their concerns and to understand their points of view. After those meetings, I came to the conclusion that the agency clearly needs a mechanism to gather advice on these matters.
That is why, today, I announced the return of the Disability Advisory Committee. A committee of that kind had been established in 2004, but it was abolished by the Conservatives as soon as they came to power in 2006. These are the same Conservatives who now claim to be rushing to the defence of the most vulnerable.
The advisory committee will work collaboratively with the agency and will bring together major stakeholders in the field to make sure that all measures targeting persons with disabilities, including the Disability Tax Credit, are administered fairly under the provisions of the Income Tax Act.
The committee will advise the CRA on the specific needs and expectations of persons living with disabilities, will review and provide feedback on the CRA's administrative practices, in order to provide greater transparency and greater access to credits, and will make recommendations on how the agency can enhance the quality of the services we provide to persons with disabilities.
I understand completely that living with a disability can have consequences for those involved, their families and their surroundings. That is why I am committed to ensuring that the agency will administer measures for those with disabilities in a fair, transparent and accessible manner.
In the last two financial years, the number of those accepted has increased by 20%. We have worked to simplify the forms. We are working with specialized nurse practitioners who are able to fill in the forms for people living in areas where access to a doctor is more difficult. The agency has also hired nurses for the programs for persons with disabilities.
I invite the commissioner to complete my answer.
View Diane Lebouthillier Profile
Lib. (QC)
The government is determined to renew the nation-to-nation relationship with indigenous peoples, and to ensure that they receive the benefits and the credits to which they are entitled.
I have met with a number of indigenous communities to discuss problems with access to the agency's services, and I will continue to do so. I come from a remote area myself. So I know full well what it means to be a long way from Ottawa. As the proverb says, “out of sight, out of mind”.
The Canada Revenue Agency has published its communication materials in a number of indigenous languages. We are working in partnership with Service Canada. The agency has visited 698 indigenous communities across the country in order to provide them with information about the benefits.
Although the agency has made a lot of progress, there is still work to be done and we are going to do it in collaboration with indigenous communities and with our partners in the regions.
View Diane Lebouthillier Profile
Lib. (QC)
As I mentioned, I am aware of the Auditor General's report and I accept all the recommendations it contains.
Right from our first budget, we decided to invest $50 million over four years, specifically to work on hiring staff in the call centres.
I can also tell you that, unlike your government, which, when Kerry-Lynne Findlay was the minister, made cuts to the Canada Revenue Agency, we have made investments in it, such as setting up a new telephone platform in order to better meet the needs of the customers who call the Canada Revenue Agency. The telephone system is 20 years old and it is out of date.
The cuts that you made also affected employee training and support. So we are working on training, because it is important to continue to provide training and support, so that Canadians can receive the best information possible.
We must also respond to the standards and needs of Canadians, not establish standards that meet only the needs of the Canada Revenue Agency.
View Diane Lebouthillier Profile
Lib. (QC)
Not at all. I am very pleased to be able to tell you that, in the last two years, I have visited the vast majority of Canada Revenue Agency offices. I went to see the call centres, I met with the employees who work there, and I listened to telephone calls.
Starting last year, we established our action plan so that we could meet the needs of Canadians. In my two years of work in the field, I have come to realize the extent to which the cuts that your government had made had weakened, and dismantled, brick by brick, the services provided to Canadians by the Canada Revenue Agency in the call centres. You should be ashamed of what happened.
View Diane Lebouthillier Profile
Lib. (QC)
I will let the commissioner answer your question.
View Diane Lebouthillier Profile
Lib. (QC)
What I can tell you today is that, in my opinion, it is important to let the agency do its job. The Canada Revenue Agency takes all the information about the Paradise Papers seriously.
View Diane Lebouthillier Profile
Lib. (QC)
The Canada Revenue Agency receives 30 million tax returns per year, from individuals or companies, and I cannot comment on any of them.
View Diane Lebouthillier Profile
Lib. (QC)
The Canada Revenue Agency will do the job it has to do. I can assure you that, as long as I am in this position, it will be done exactly in that way, meaning that we will not discuss any specific case.
View Diane Lebouthillier Profile
Lib. (QC)
I work with the officials of the Canada Revenue Agency. What our government has done in the last two years is invest almost $1 billion specifically to combat tax evasion and tax avoidance.
View Diane Lebouthillier Profile
Lib. (QC)
All taxpayers' files are confidential and will remain confidential. I can assure you that no, repeat no, parliamentarian will have access to the Canada Revenue Agency's files.
View Diane Lebouthillier Profile
Lib. (QC)
I certainly do not believe that you would like the Minister of National Revenue to be talking about your file, or about the file of any other parliamentarian. That would be completely inconceivable.
View Diane Lebouthillier Profile
Lib. (QC)
Our current telephone system does not allow us to record calls. We have to set up a new platform that will meet the needs of Canadians.
Commissioner Hamilton will be able to give you more details on the three measures that we will soon be implementing.
View Diane Lebouthillier Profile
Lib. (QC)
The agency has a program that allows people to challenge its decisions. I will invite the Commissioner to talk to you about the unique features of that program.
View Diane Lebouthillier Profile
Lib. (QC)
In our first two budgets, we have invested $1 billion. As we have repeatedly said, these are unprecedented budgets in which the government gave priority to the fight against tax evasion and aggressive tax avoidance. This has enabled us to hire 100 auditors. However, the Conservative government eliminated 50 auditor positions assigned to international tax evasion.
As of September 30, 2017, those funds had allowed the agency to conduct more than 990 audits and 42 criminal investigations related to financial structures abroad. Those activities are still ongoing.
That's the work those investments will allow the Canada Revenue Agency to accomplish in the next five years. The first budget, approved in 2016, covered the period ending in 2021. Budget 2017 provided for additional funds. This will help us work on tax evasion until 2022.
View Diane Lebouthillier Profile
Lib. (QC)
Unlike the Conservative government before us, our government decided to look into the tax gap. It was our promise to Canadians, and that's exactly what we are doing. We have taken a fact-based approach. To date, we have demonstrated our commitment to estimating the tax gap. We have actually published three studies since June 2016. We are continuing our efforts on the tax gap. That's what Canadians expect. In the summer of 2018, we will submit another report on the international tax gap.
I invite Commissioner Hamilton to give you more details on the issue.
View Diane Lebouthillier Profile
Lib. (QC)
Let me say to everyone here, around the table, that the Income Tax Act has not changed when it comes to the disability tax credit. No changes have been made to the eligibility criteria for the disability tax credit.
In addition, I can tell you that, at the Canada Revenue Agency, we are currently working to improve our communications with people so that they are much more respectful, much easier to understand—
View Diane Lebouthillier Profile
Lib. (QC)
What I am saying is that, at the Canada Revenue Agency, we are working to improve our communications with all Canadians so that they are much more respectful and do a good job of explaining the legislation to Canadians. Whether we decline or accept, we are trying to be much more human in our communications. Humanizing the Canada Revenue Agency's services is part of my mandate letter.
View Diane Lebouthillier Profile
Lib. (QC)
I can tell you that, between 2015 and 2017, the number of approved tax credit claims has increased by 20%. We have made the tax credit much more accessible. We have simplified the forms. We rehired nurses. We also give people access to specialized nurse practitioners who can answer questions and complete forms.
That's what we are doing at the Canada Revenue Agency so that people receive the tax credits they are entitled to.
I will ask Mr. Hamilton to elaborate on the technical aspects.
View Diane Lebouthillier Profile
Lib. (QC)
It's ridiculous to say that the Prime Minister will interfere in cases that fall under the Canada Revenue Agency. We will let the revenue agency do its job.
All the information about the Paradise Papers is taken very seriously by the agency. If any charges need to be laid, it will certainly not be up to any parliamentarian to do so.
View Diane Lebouthillier Profile
Lib. (QC)
I would like to add something about the disability tax credit. By dismantling the important disability advisory committee, your government deprived the disabled, those who protect their rights and professionals in the area of the opportunity to share their opinions in order to better guide the agency's decisions. The disability advisory committee, which we have reinstated, will be a major tool for the agency. We must continue to work with our partners.
View Diane Lebouthillier Profile
Lib. (QC)
Since our government took office, the public has been at the heart of its concerns, a mission that is also part of my mandate letter. This has helped increase the number of people eligible for the disability tax credit.
I also want to point out that our interactions with stakeholders will help us examine the agency's administrative practices and improve the quality of, and accessibility to, the services we provide to people with disabilities.
We checked the numbers with Diabetes Canada. Diabetes Canada is not able to explain where the numbers we were given come from. The Canada Revenue Agency is doing all the checks manually. Anyone who meets the criteria is entitled to the tax credit, period.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you, Mr. Chair, for the opportunity to provide input into the standing committee's study of the main estimates.
I am joined by Mr. Roch Huppé, the agency's chief financial officer and assistant commissioner of the finance and administration branch, and Mr. Ted Gallivan, the assistant commissioner of the international, large business and investigations branch.
First off, I would like to highlight that the agency is seeking $4.2 billion through these main estimates—$3.2 billion of which requires approval by Parliament. This number represents a 1.9% increase from last year’s main estimates. The agency will use these funds to successfully continue its important work.
In November, when I last spoke to this committee, I gave an overview of the Canada Revenue Agency’s efforts to combat aggressive tax planning and tax avoidance, as well as how the agency is improving services for Canadians. I would like to take a few minutes, Mr. Chair, to update the committee on these two fronts and the ways they are being addressed by the agency.
As you know, the Canada Revenue Agency is an increasingly client-focused agency that exists to serve Canadians. As it says in my mandate letter, my overarching goal as Minister of National Revenue is to ensure that the agency is fairer and more helpful, and that its services are easier to use. The agency is currently overhauling its service model so that people who interact with it feel like valued clients, not just taxpayers.
The agency is committed to ensuring that Canadians have access to the information they need about taxes and benefits—on its website, through its call centres, or through written correspondence.
Since my last appearance, the agency has responded to the public’s needs by making it easier to get help over the phone. To make sure that Canadians understand the information they're receiving from the agency, we have simplified the language in 75% of the correspondence we send to Canadians, making it easier to read and understand.
The agency is also ramping up its outreach efforts to ensure that taxpayers understand and meet their tax obligations. These efforts improve tax compliance through a “get it right from the start” approach to educate, inform, and support taxpayers by improving service and encouraging voluntary compliance.
As you are well aware, we have just completed the 2017 filing season. Over 22.8 million T1 returns were received from February 20 to April 30. Close to 90% of returns were filed electronically. Roughly 58% of those returns were filed by tax preparers through EFILE, and 32% were filed by individuals through NETFILE.
New services were launched to help individuals and tax preparers submit their returns electronically for the 2017 tax filing season. The Auto-fill my return service automatically fills in parts of tax returns, making filing online easier. This tax season, additional slips and prior year returns are available for Auto-fill. Tax preparers can also amend their clients' returns electronically by using the new ReFILE service.
I'm pleased to tell this committee that our service improvements that benefit all Canadians will not stop there.
The agency is developing a new service for February 2018 that will fully prepare returns for Canadians with simple tax situations, low or fixed income, and whose financial situations are unchanged from year to year.
In addition, in order to meet our commitment to provide the best possible service to Canadians from coast to coast, the agency’s service renewal plans are well under way. With more Canadians than ever filing their taxes online, the resources needed for the agency to deal with paper returns are decreasing. So, we are reviewing and reorganizing workloads in order to work smarter and more efficiently.
That means we are improving our call centres and creating national verification and collections centres. These changes mean the Canada Revenue Agency will be a more efficient organization and provide better service to Canadians.
Still, we always strive to do better, prioritizing Canadians in everything we do. As our prime minister says, we can always do better.
Since my appointment as Minister of National Revenue, I have been committed to ensuring that Canadians get the benefits to which they're entitled. That's why the agency is proactively contacting Canadians who are not receiving the tax credits or benefits they should, to make sure that the government is supporting the most vulnerable and ensuring Canadian families have the support they need.
The agency is also expanding the community volunteer income tax program; now, more Canadians than ever with low and modest incomes will benefit from free tax preparation clinics.
Mr. Huppé will speak to the details of the main estimates, but before I yield the floor to him, I would like to briefly touch on the agency’s accomplishments on the compliance front and our plans for the way forward.
Most Canadians pay their taxes in full and on time. But some do not pay what they owe. This is not right; this must change. By combatting offshore tax evasion and aggressive tax avoidance, as does our government, we are protecting the important public services that Canadians rely on.
Since my last appearance before this committee, the agency has taken concrete and effective steps to crack down on tax cheats. We are currently conducting audits on over 820 taxpayers and criminally investigating over 30 cases of tax evasion specifically linked to offshore tax havens.
Through Budget 2016, the agency increased its information-gathering capabilities and improved the tools at its disposal. The agency now has access to more of the information it needs to fulfill its obligations.
In the last year, the agency has increased the number of auditors reviewing offshore tax schemes, promoters and large multinational corporations. It has started reviewing all taxpayers in certain segments of the population identified as high risk. The agency is using external data and publicly available information to maximize its efforts to identify non-compliance. It has expanded its efforts specifically geared towards intermediaries, making promoters a focus of our criminal investigations, with several under way.
As well, the agency is taking a much harder stance on taxpayers who appear on leaked lists of offshore holdings. For example, with the Panama Papers, the agency has over 122 taxpayer audits under way and is reviewing a treasure trove of data linked to these taxpayers. It has also executed search warrants, and several criminal investigations involving both participants and facilitators are under way.
Audits of the highest-risk taxpayers moving money between Canada and four foreign tax administrations of interest are under way, with more to come. So far, a total of 41,000 transactions have been analyzed, totalling over $12 billion. The Canada Revenue Agency continues to build its capacity to detect and crack down on tax cheats. It is developing a powerful business intelligence infrastructure and risk assessment system to target cases of high-risk Canadian and international tax evasion and abusive tax avoidance.
It is clear, Mr. Chair, that our government is committed to protecting the integrity of the Canadian tax system by combatting offshore tax evasion and aggressive tax avoidance on all levels. As Minister of National Revenue, I am committed to ensuring that the agency has all the tools and resources it needs to fulfill its role and meet Canadians' expectations.
Thank you.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
Cracking down on tax evasion and aggressive tax avoidance is indeed a priority for our government. Last year, the Department of Finance allocated extraordinary resources to the Canada Revenue Agency for that purpose, in the amount of $444 million. This meant that we were able to hire auditors throughout the year and acquire the tools necessary to combat tax evasion and aggressive tax avoidance. We are also busy getting rid of tax loopholes that result in tax advantages for some at the expense of others.
I will let Mr. Gallivan provide you with some more technical details.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
I have to tell you that I am particularly sensitive to the whole issue of small and medium-sized businesses, given that I was raised by parents who owned a small business. I come from a rural area where there are a lot of small businesses.
Our government has committed to supporting small businesses. In my view, they create jobs and wealth, and they diversify our economy.
At the Canada Revenue Agency, we have established a service to support small businesses as they are starting up. Last year, we held consultations with small businesses across the country. We wanted to determine how the agency could continue to improve its services and to help small businesses not only as they start up, but also as they continue their activities.
Mr. Gallivan will be able to provide you with additional information on that.
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Chair, I thank my colleague for his question and for his interest in small businesses.
As I was saying earlier, small businesses are a priority for me, given that I come from an area where there are a lot of them.
However, I do not entirely agree with what he has just said. We have not changed the tax rules on deductions that apply to small and medium-sized businesses. The same provisions continue to apply.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you, Mr. Chair.
I repeat that our government is committed to supporting small and medium-sized businesses. I must also tell my colleague once more that we have not changed any tax rules. The same provisions continue to apply.
I would also like to tell the committee that, in 2014, our colleagues here—
View Diane Lebouthillier Profile
Lib. (QC)
So, as I was saying, in 2014-2015, the party in power, my colleague's party, held consultations about the rules and decided to change none. The rules continued to apply and we are still applying them now.
Mr. Gallivan will be able to give you more details about the rules that apply to campgrounds.
View Diane Lebouthillier Profile
Lib. (QC)
The job that was entrusted to me in my mandate letter is about services to Canadians, about improving services, and about the fight against tax evasion and aggressive tax avoidance. I have to tell you, Mr. Dusseault, that I have never given a second thought to the colour of the text in the report.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you for your question, Mr. Dusseault.
I would like to thank the committee for the report it produced. My department has accepted all 14 recommendations in your report.
As for the voluntary disclosures program, I would like to remind you that, last year, I commissioned an evaluation by an independent person, Kimberley Brooks. She evaluated the whole process to determine whether everything was in order. In this aspect, indeed, it was.
I can tell you that we are in the process of responding to the 14 recommendations. Mr. Gallivan will be able to tell you what point we have reached.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
That actually gives the government the opportunity to talk about all the work it has done and will do to combat tax evasion and aggressive tax avoidance.
As I mentioned in my remarks, our activities are currently geared towards criminal activity. Investigations are under way and are taking their course.
As for tax evasion and tax avoidance, Mr. Gallivan has a lot more technical information. We know that Canadians want to know what is happening, they want everyone to pay their fair share and, if something is considered criminal, they want it to be dealt with as such.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for her question.
Our government has in fact committed to study the tax gap, something the Conservative Party never wanted to do. Our approach is quite different, in that we work on the basis of facts. That is how I asked the Canada Revenue Agency to work. The agency is working in collaboration with the Parliamentary Budget Officer on the tax gap issue.
A first report was submitted last June. The work is continuing. Other meetings will be taking place. The important thing for us is to use all the tools at our disposal, to make sure that Canadians have trust in the fairness of our tax system.
I repeat my commitment, and the government's commitment, to continue our work and to make it public.
View Diane Lebouthillier Profile
Lib. (QC)
A first report was submitted last June. As to how the work is continuing, Mr. Gallivan is more current as to dates and all the technical aspects.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question and for his concern for people. Indeed, not everyone has access to electronic services, and I am very aware of that.
In terms of customer service, in my opinion, everyone must be treated fairly. Just because someone sends their returns on paper does not mean that they will be treated less well than those who filed their returns online.
I am happy that almost 90% of the people send their returns to the agency electronically, but when we receive paper returns, we process them in the same way as electronic returns.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
At the beginning of tax season, I was told that it was difficult to find forms in French in some places. It was also difficult to get forms in some other places. I immediately contacted people at the agency to resolve the situation. Mr. Gallivan will be able to give you more information about that and to talk to you about the agreements we have reached with Canada Post in terms of paper tax returns.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
As my mandate letter mentions, one of the agency's priorities is customer service. Our government is committed to having the agency provide Canadians all across the country with the best service.
The objective of streamlining the services is to concentrate processing activities in the three national verification and collection centres.
I have been able to tour the agency's offices all over Canada. Actually, the tour is just coming to an end. I have been meeting with employees to see how the streamlining of services is going in the trenches, because streamlining means change. Employees and management are working together and are committed to serving Canadians. I was extremely surprised to hear employees all over the country tell me that they had never seen a revenue minister in their offices and in their regions. Streamlining the services has allowed us to consolidate our services in the regions. As I see things, all the regions of the country are important.
The only office that was closed was in Toronto, but there are already three other agency offices in that city. We made sure that we worked with the unions to support employees through all the changes that were implemented.
Everywhere I went, I met Canada Revenue Agency employees who are committed to customer service. I always take the opportunity to tell them how much of a priority customer service is for me. I am a social worker by training and, as I see it, everyone must be treated the same, from the poorest to the richest.
View Diane Lebouthillier Profile
Lib. (QC)
You are perfectly right. The fact that there are two tax returns is peculiar to Quebec. The CRA is working closely with the Ministère du Revenu in Quebec. I have also met with my colleague, Minister Leitão, on several occasions.
With that introduction, I will ask Mr. Gallivan to answer your question in more detail.
View Diane Lebouthillier Profile
Lib. (QC)
Like us, all the committee members around this table want to work to provide a better tax system for Canadians. So I will be happy to answer your questions.
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
I will repeat myself and tell him that we have not changed the rules.
View Diane Lebouthillier Profile
Lib. (QC)
At the Canada Revenue Agency, we apply the legislation that is the responsibility of…. If the act is to be amended, we would have to consult the Department of Finance. At the Canada Revenue Agency, no changes have been made to tax rules. They continue to apply, as they applied when your government held public consultations when you were in power. You did not change the rules at that time and, in turn, we continue to apply exactly those same rules.
View Diane Lebouthillier Profile
Lib. (QC)
I met with the Auditor General over the winter on the objection process. We discussed his report. It was submitted and I have considered it.
We accepted all the recommendations on objections in the Auditor General's report. An action plan with the goal of reducing delays in processing objections is already being developed and will be submitted soon. We will make it public so that people know how to proceed when they have an objection.
We know that there is a backlog of objections and we really intend to reduce it. We want objections to be processed as quickly as possible. Service to Canadians is a priority for us.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you for your question.
As I mentioned before, what's important to us is that everyone pays their fair share and receives what they are entitled to. My goals are to have effective and efficient services that are geared to Canadians. That's actually at the heart of my mandate letter.
There are still services within the agency. Our goal is not to put people in difficult situations and shut down businesses, but to reach agreements with people to find the tax base that will enable the government to invest in public services, education and health, to help the poorest of the poor and to invest in infrastructure. That is what the Canada Revenue Agency is all about. There's always a way to reach a deal with the Canada Revenue Agency. Each case is treated separately. Our employees are there to help and support people, as well as to enter into agreements with them.
Perhaps Mr. Huppé could elaborate on that.
View Diane Lebouthillier Profile
Lib. (QC)
You have two questions.
I'll answer the first one about the $51 million for children in the care of the state, of foster families or people other than their parents.
Yes, the money is earmarked for the state, because child services and foster care fall under provincial jurisdiction. The money makes it possible to provide assistance to the children, because they have specific needs when they are young and live with those families. That's what the money should be used for.
View Diane Lebouthillier Profile
Lib. (QC)
It is understood that we cannot allocate the money directly to the children. It is allocated to the provincial governments, which in turn look after managing the social services.
View Diane Lebouthillier Profile
Lib. (QC)
I take note of your remarks. I can't give you more information, because these areas are under provincial jurisdiction.
The other question that you asked me is whether all the families have received the Canada child benefit. I will take this opportunity to convey a message that's important to me. I say this wherever I go.
Those who have not filed their tax returns are not entitled to the Canada child benefit or any tax credits. At the meetings I have, when I go to indigenous communities and when I meet with community organizations—I do some fieldwork, because it's important for me to involve the public—I tell those in charge that it's important that they talk to their people. That's the responsibility of every elected official, be they in Parliament, the provinces, municipalities and grassroots organizations, which are much closer to people and families. I tell them to check whether the people have filed their tax returns so that they are entitled to the Canada child benefit.
This is not about penalizing people. For those who have not filed their tax returns, they may go as far back as 10 years for some programs. So some people have received $15,000 or even more in tax credits, from the money they were entitled to. I therefore strongly encourage you to check in each of your ridings with your organizations and to ensure that the people file their tax returns so that they get what they are entitled to.
In terms of the agency, as long as I'm there, it will not make money on the backs of the poor. However, when it comes to the wealthiest who hide their money abroad, let me tell you—and I have said it before—I will not let them off the hook.
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