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Results: 241 - 300 of 302
View Diane Lebouthillier Profile
Lib. (QC)
We have stated that the fight against tax evasion and aggressive tax avoidance are priorities of this government.
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Chair, as I mentioned from the outset, the Canada Revenue Agency is the one who detected the scheme put in place by KPMG.
I will ask Mr. Gallivan to answer my colleague, provide additional technical information, and complete the response.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you for your question.
I do, indeed, consider client service a priority. The fact that the Prime Minister chose a social worker as Minister of National Revenue was no mere happenstance. Since we're speaking to the issue of services to the public, I should mention that, for me, people who face greater challenges, and might not have their tax returns prepared by accounting firms, are important.
In the historic budgets we announced, we stressed the importance of improving telephone service as well. Many regions of Canada still don't have cellphone service or computer access.
And we want the public to be able to receive accessible, easy-to-understand documents by mail. This is particularly important given that 51% of Canada's population is functionally illiterate. This means that, when those people receive documents, they're unable to understand the contents.
With respect to volunteers, we need to see an increase in number, and they should be given much more support. The challenge is to help people who don't have the means to pay someone to fill out their tax returns. We're working on that.
View Diane Lebouthillier Profile
Lib. (QC)
Since your question is much more technical, Mr. Gallivan will answer it.
View Diane Lebouthillier Profile
Lib. (QC)
The 2013 program set a process in motion, in which the government determined that even more massive investments would be needed so that all amounts lost due to tax evasion and aggressive tax avoidance could be recovered.
View Diane Lebouthillier Profile
Lib. (QC)
I want to emphasize that the major investments that our government is making at this time show the importance we accord to the entire tax evasion and tax avoidance issue. These investments will enable the Government of Canada to hire many more people and modernize the tools needed to address a problem that's international in scope. Mr. Gallivan will be able to complement my answer in this regard.
View Diane Lebouthillier Profile
Lib. (QC)
Indeed, international agreements have been drafted because countries noticed the problem is international in scope. And the agreements signed in Beijing last week evince a clear interest in dealing with the issue at an international level. This is why it's important that the government put all the necessary resources in place so that all Canadians can get back their fair share.
View Diane Lebouthillier Profile
Lib. (QC)
I will ask Mr. Gallivan to respond to the technical aspects of your question more precisely.
View Diane Lebouthillier Profile
Lib. (QC)
We must work internationally, to ensure our partners can exchange information under the agreements.
Mr. Gallivan should be able to answer this by providing an update.
View Diane Lebouthillier Profile
Lib. (QC)
It's important to specify that 17 million electronic funds transfers of $10,000 are something major in Canada. And, as I was saying, our new tools are bringing the non-compliance abroad to light.
We are on the right track toward uncovering $1 billion through voluntary disclosure programs. That's an increase of more than 400% in the course of the last six years.
View Diane Lebouthillier Profile
Lib. (QC)
Given the technical aspect of this question, I will ask Mr. Gallivan to respond.
View Diane Lebouthillier Profile
Lib. (QC)
In the matter we're discussing—the KPMG matter—I can tell you that I wasn't present when agreements were signed on the subject. Mr. Gallivan will be able to respond to the various points in your question.
View Diane Lebouthillier Profile
Lib. (QC)
I am unable to confirm the authenticity of the document posted online by the CBC.
View Diane Lebouthillier Profile
Lib. (QC)
View Diane Lebouthillier Profile
Lib. (QC)
View Diane Lebouthillier Profile
Lib. (QC)
We have specified that the KPMG matter is not closed. Investigations concerning the identified taxpayers are ongoing. Given the major investments our government has made, we are confident that we can continue to work on all matters related to tax evasion and aggressive tax avoidance schemes.
View Diane Lebouthillier Profile
Lib. (QC)
As part of the announcement we made in April about the Canada Revenue Agency, we stated that the CRA was, indeed, going to undertake a detailed study of measures related to the tax gap. This will be done during the coming year.
View Diane Lebouthillier Profile
Lib. (QC)
Yes. You're correct. Resources have once again been allocated. In a summary of the situation that was given to me, I was told that, last year, people who were trying to contact the agency had to make up to 10 telephone calls before they could speak with someone and obtain information.
I was very happy to learn last week, during a meeting with my senior officials, that the number of staff had been increased and that the number of calls each person was making had decreased to two. Naturally, my objective is to ensure people can be answered as quickly as possible when they call. People have concerns, even though 95% of Canadians fill out their income tax forms and do things properly. So we need to be able to give them answers. CRA clients are Canadians. It's the CRA that works for Canadians, not the other way around.
View Diane Lebouthillier Profile
Lib. (QC)
Yes. I believe the agency will achieve those better results. I have every confidence in the professionals in place. Since my arrival at the department, I've established a short-term, medium-term, and long-term action plan involving CRA staff, professionals, and senior officials.
The action plan submitted to the Minister of Finance and the Prime Minister's Office has enabled us to obtain, as part of an overall envelope, close to $1 billion to combat tax evasion and address all aspects of client access and client service.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you, Mr. Chair.
I thank you for the opportunity to participate in the committee's study of the main estimates 2016-17.
I am joined by several Canada Revenue Agency officials: Mr. Geoff Trueman, the assistant commissioner of the legislative policy and regulatory affairs branch; Mr. Ted Gallivan, the assistant commissioner of international, large business and investigations branch; and Mr. Roch Huppé, the assistant commissioner of the finance and administration branch. Mr. Huppé will speak briefly about the main estimates and answer your questions, but I would like to say a few words by way of introduction.
I spoke earlier today to your committee about some of the proposed measures in Budget 2016 that will help the CRA combat tax evasion and tax avoidance. A secure tax base is the foundation for a healthy economy, a sustainable social infrastructure, and a strong democracy. I would like to add that the Government of Canada proposes two additional areas of investment that will also support the work of the CRA and my priorities as Minister of National Revenue. Those priorities are in my mandate letter.
Budget 2016 proposes to invest $351 million in the CRA's ability to collect outstanding tax debt, and $186 million to improve service to Canadians through better telephone access, easy-to-understand correspondence, and increased outreach for vulnerable and low-income Canadians. That is a total investment exceeding $1 billion over the next five years, a testament to the importance of the work the CRA does.
As you are aware, Mr. Chair, Canada's tax system is based on voluntary self-assessment and compliance. Within this system, the CRA plays a special role. It administers tax laws for the Government of Canada and for most Canadian provinces and territories, and it administers various social and economic benefit and incentive programs that are delivered through the tax system. The taxes collected by the CRA are critical to families, businesses, and communities. When Canadians meet their tax obligations, they are helping to fund health care, post-secondary education, social programs, infrastructure, and many other programs. This is why it is crucial that everyone pays their fair share of taxes, so that all Canadians can benefit.
In 2014-15, the CRA processed $469 billion in revenues and engaged with 31 million individual and corporate taxpayers. More than 92% of taxpayers file their taxes and pay the amount they owe on time. The CRA also delivers important benefits to many eligible Canadians. Last year, the CRA delivered $22 billion in benefit payments to 12 million recipients.
With new funding of $186 million, the CRA will be able to reach out to Canadians who may be entitled to benefits but not be receiving them. By offering services that are proactive, more helpful, and easier to use, the CRA will ensure that people who interact with the agency feel like valued clients, not just taxpayers.
We are confident that our proposed investment in the CRA's ability to protect the revenue base while improving service to Canadians will yield significant returns. It will also help ensure that our tax system operates as fairly and effectively as possible.
I would now like to turn you over to Roch Huppé, who will walk you through the CRA's main estimates.
Thank you.
View Diane Lebouthillier Profile
Lib. (QC)
Since taking office as Minister of Revenue, I have visited offices throughout Canada. I can tell you that telephone service is not offered between 8 a.m. and 4 p.m.
Mr. Gallivan, who is more familiar with the improvements we are making, will be able to answer you on that point.
View Diane Lebouthillier Profile
Lib. (QC)
Yes, as we were saying, we have budgeted for $1 billion over the next five years.
View Diane Lebouthillier Profile
Lib. (QC)
Yes, this really is customer service, where we have to respond to a request quickly and be able to provide information in a form that can be understood. Access to clients means doing outreach to people with disabilities, people who live in remote areas and may not have access to electronic services, and also seniors. So it is a service that is really based on the specific characteristics of certain client groups. There are also the aboriginal communities. We have to be in contact with them in order to give them access to various programs. In the case of the aboriginal communities, we have to make sure they are able to receive the Canada child benefit. To do that, people have to fill out their tax return. All in all, it is important for us to reach the entire population so everyone has access to the programs they are entitled to.
View Diane Lebouthillier Profile
Lib. (QC)
I sincerely thank my colleague for his question.
In fact, client service is part of my mandate letter and one of the priorities of the Canadian government. We have already begun to put measures in place so that the correspondence we send people is easy to understand. We talked about telephone services earlier. We want to ensure that people are able to get responses much faster.
We have put a whole system in place for processing requests. When people have trouble paying what they owe the government, it is important to treat them well and make sure that everyone fulfills their obligations.
View Diane Lebouthillier Profile
Lib. (QC)
Yes, that is also part of client services. We are well aware that, in the case of the neediest or most disadvantaged clients, things having to do with the tax system are complicated. A lot of people did not have access to additional credits. The government is therefore truly committed to this. One of the CRA's priorities is to provide information when people call.
The CRA does not let people guess and search in this very complex system for the credits they are entitled to. When people call, we provide them with guidance in this regard.
The volunteer program is also designed this way. We want to enable people to get the money they are entitled to, to improve their quality of life.
View Diane Lebouthillier Profile
Lib. (QC)
According to my information, and from my experience working with my representatives, the important thing for us is that people receive the services they are entitled to and the benefits they are entitled to. I am very happy about what has been announced by our government. At the CRA, everything is in place so that starting in July, people will be able to receive the Canada child benefit. These measures have been put in place by our government to enable people to have a better quality of life and to receive the money they are entitled to.
As I said a little earlier, I am a social worker. I come from a remote region. I am very familiar with disadvantaged populations, seniors, and people with little formal education. I know very well that these people do not all receive the services they are entitled to.
We have to reach out to those people. We have to offer services to people in remote regions, like Nunavut. Canadians do not all live in cities.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you very much, Mr. Chair.
I welcome this chance to address the committee.
I am joined today by senior officials from the Canada Revenue Agency: Ted Gallivan, the Assistant Commissioner of the International, Large Business and Investigations Branch, and Marie-Claude Juneau, the Director of the Access to Information and Privacy Directorate in the Public Affairs Branch.
Mr. Chair, as the world becomes increasingly globalized and cross-border activities become the norm, tax administrations need to work together to ensure that taxpayers pay the right amount of tax to the right jurisdiction. Cooperation with other tax administrations is critical to protecting the integrity of Canada's tax system and revenue base. In fact, Canada is part of one of the world's largest treaty networks, with no less than 92 tax treaties and 22 tax information exchange agreements in force.
In 2010, the U.S. Congress passed the Foreign Account Tax Compliance Act, or FATCA. FATCA requires non-U.S. financial institutions to enter into agreement with the Internal Revenue Service, the U.S. tax department better known as the IRS. This act, therefore, requires the reporting of information on accounts held by U.S. residents and U.S. citizens, including U.S. citizens who are residents or citizens of Canada.
If a financial institution, Canadian as far as we are concerned, is not compliant with FATCA, FATCA requires U.S. payers, that is, corporations and other entities that pay amounts such as interest or dividends, making certain payments of U.S.-source income to this financial institution, to withhold tax equal to 30% of the payment.
This 30% FATCA withholding tax can also be levied in respect of a compliant financial institution, on individual account holders that do not provide documents showing that they are U.S. residents or U.S. citizens. In some circumstances, FATCA could even require financial institutions to close the accounts of certain clients.
In February 2014, Canada and the U.S. signed an international intergovernmental agreement, an IGA, under the longstanding Canada-U.S. tax treaty. We should mention that the first fiscal agreement between Canada and the United States dates back to 1942. While our countries have been exchanging tax information without any problems for decades, this 2014 agreement provides for an enhanced exchange of financial information to improve compliance with our respective tax laws.
Less known is that the agreement is reciprocal. So, the IRS is required to provide the CRA with enhanced information on certain accounts of Canadian residents held at U.S. financial institutions. The intergovernmental agreement was signed in February 2014 and legislation to amend the Income Tax Act to reflect the agreement was passed by the Canadian Parliament in 2014.
Canadian financial institutions that comply with the IGA and related Canadian legislation are now exempt from the 30% withholding tax. Further, Canadian financial institutions report to the CRA the financial accounts they maintain for U.S. citizens. We, in turn, securely transmit that information to the IRS.
Concerning privacy, the CRA is committed to administering this agreement, and all of Canada's tax agreements, in good faith. During the drafting process of the agreement with the Americans, the CRA, together with the Department of Finance, took great care to consult with the Office of the Privacy Commissioner (OPC). We received valuable input and adopted our approach accordingly as the negotiations progressed.
The CRA completed a privacy impact assessment in August 2015. The goal of this assessment was to identify, assess, and mitigate privacy risks. We then submitted this assessment to the Office of the Privacy Commissioner for review. These communications with the OPC and the resulting actions were undertaken with the specific intent of protecting taxpayer privacy.
Information can be disclosed only to persons or authorities who assess, collect, administer, or enforce the taxes and tax laws to which the convention applies. This information can be used for income tax purposes only.
The IGA further stipulates that the information exchanged is subject to strict confidentiality and other protections provided for in the convention, including the provisions limiting the use of the information exchanged.
The CRA exchanged information with the IRS on September 30, 2015. This exchange was done while the CRA followed all of the confidentiality protocols of the treaty and the IGA. Just over three months ago, on January 4, 2016, the CRA received the OPC's recommendations pertaining to the agreement.
My officials have provided to the committee both the OPC recommendations and a copy of our response to them for your information. It is important to mention that, following our submission to the OPC, none of their recommendations suggested that we were not to share this information last September. The next annual transfer of records with the IRS is scheduled for September 30, 2016.
I want to reassure Canadians that all tax treaties and exchanges of information are subject to strict confidentiality requirements. Mr. Chair, this is a priority for our government.
These information-sharing agreements are very important because they allow us to better combat tax evasion and tax avoidance. Canadians are telling us that they want us to crack down on tax evasion and tax avoidance, and the government is committed to do so, as I mentioned earlier this week. This sharing of information is critical to allow us to follow through on that commitment to Canadians.
In conclusion, I emphasize that Canada and the international community continue to move ahead towards greater tax transparency. But rest assured that confidentiality of taxpayer information remains a fundamental cornerstone of Canada's tax system.
Thank you for your attention.
View Diane Lebouthillier Profile
Lib. (QC)
I am going to ask Ms. Juneau to answer your questions and give some comments on that.
View Diane Lebouthillier Profile
Lib. (QC)
Currently, that information cannot be publicly released because it was obtained under a treaty. It is the prerogative of the country sending the information to authorize public release of the information.
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Long, our government takes the matter of privacy protection very seriously. All the information exchanged with the United States is subject to very strict confidentiality rules. The Canada Revenue Agency makes sure that tax cooperation with its partners is fully consistent with the privacy rights in effect in Canada. Information exchange is done electronically, through a dedicated, secure and effective transmission system.
All information that the IRS receives must be kept secret in the same way as information obtained under its own tax laws. All information can only be released to individuals and authorities in the American tax administration and can only be used for tax purposes.
Protecting the confidentiality of all transmissions is a major requirement for the agency. Protecting privacy really is a priority for the agency and for our government.
View Diane Lebouthillier Profile
Lib. (QC)
I will let Mr. Gallivan answer that question.
View Diane Lebouthillier Profile
Lib. (QC)
The financial institutions are aware of this kind of information exchange. I must emphasize that, if the agency had not signed an agreement with FATCA, the information exchange would be done by the banks. The fact that the agency is involved and that agreements have been reached with FATCA, allows us to protect the information even more and to respect confidentiality and privacy.
View Diane Lebouthillier Profile
Lib. (QC)
I must tell you that, clearly, we would have done things differently from the previous government when the time came to get the approval of Parliament. We would not have rushed the agreement into effect by hiding it in an omnibus bill more than 400 pages long. We would have taken the time to explain clearly to Canadians and to Parliament why the agreement was being adopted. We would have taken the time to discuss it in a much more open and transparent manner in order to provide parliamentarians and Canadians with all the information, as is right and proper.
View Diane Lebouthillier Profile
Lib. (QC)
After we had obtained all the information about FATCA, we clearly would still have entered into agreements with the United States. FATCA is an American act. The position that was taken at the time really allowed the Canadian banking system, and Canadians with dual citizenship, to be protected.
View Diane Lebouthillier Profile
Lib. (QC)
The current agreement adequately protects the rights of Canadians. As I mentioned, the action needed would have been more about the process of implementing the agreement with the United States. We would have worked differently by involving all parliamentarians in open and transparent discussions and by providing information that was fair and equitable for all Canadians.
View Diane Lebouthillier Profile
Lib. (QC)
That is true, but I must repeat that the difficulty was much more related to the process. If the process had involved all parliamentarians, we would probably not be here today discussing FATCA.
View Diane Lebouthillier Profile
Lib. (QC)
I think that Ted Gallivan will be able to answer that question.
View Diane Lebouthillier Profile
Lib. (QC)
As I mentioned a little earlier, we clearly would have done things differently in terms of what the previous government did when the time came to have the agreement approved. There would have been discussions in Parliament in which everyone would have been involved.
View Diane Lebouthillier Profile
Lib. (QC)
The NDP is loudly clamouring for measures to fight tax evasion and tax avoidance. However, the automatic exchange of information such as we have with the United States allows us to cross-reference information.
View Diane Lebouthillier Profile
Lib. (QC)
We can also identify inconsistencies in tax avoidance and tax evasion internationally.
Are you telling me that you are against measures that allow us to fight more effectively against tax evasion?
View Diane Lebouthillier Profile
Lib. (QC)
On Monday, we made a historic announcement about an investment of $444.4 million. We certainly responded to Senator Percy Downe, who has also taken a public position saying that he was in agreement with our direction. So we are now going to work in collaboration with the senator on the tax gap.
View Diane Lebouthillier Profile
Lib. (QC)
I will ask Mr. Gallivan to answer your question.
View Diane Lebouthillier Profile
Lib. (QC)
I would like to emphasize that FATCA is an American act and more than 100 countries have to comply with it in terms of Americans with dual citizenship, wherever they are in the world. As far as constitutionality is concerned, all agreements have been and are vetted by the Department of Justice.
View Diane Lebouthillier Profile
Lib. (QC)
As I mentioned a little earlier, Canada had to come to an agreement on FATCA. We had to sign an agreement with the United States. The problem was the process in the House. There should have been open and transparent discussions with all parliamentarians.
View Diane Lebouthillier Profile
Lib. (QC)
I will ask Mr. Gallivan to answer your question.
View Diane Lebouthillier Profile
Lib. (QC)
Do you want to know whether it would be a good idea to send all the information?
Under our current agreement, people who want to receive information about what has been transferred can get in touch with the agency or with their financial institution and the information will be provided to them.
View Diane Lebouthillier Profile
Lib. (QC)
As well, on the Canada Revenue Agency website, there is a special section on FATCA and everything that is involved.
View Diane Lebouthillier Profile
Lib. (QC)
If you want to amend the agreement, you would have to talk to the Department of Finance. That is the department that negotiated the agreement.
View Diane Lebouthillier Profile
Lib. (QC)
The Department of Finance negotiated the agreement. So you would have to check with that department to see if it is possible to change it.
View Diane Lebouthillier Profile
Lib. (QC)
Let me repeat the answer I gave. The Department of Finance negotiated the agreement. The Canada Revenue Agency implements the agreements negotiated by the Department of Finance.
Results: 241 - 300 of 302 | Page: 5 of 6

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