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Results: 1 - 15 of 487
View Gabriel Ste-Marie Profile
BQ (QC)
Thank you, Mr. Chair.
Like the minister, I too want to wish you a happy birthday, Mr. Chair.
I am going to start with a statement. Then I will ask my questions.
Hello, Minister. Thank you very much for being here this afternoon.
The committee has already been working on the problems of tax evasion and tax avoidance for some time, in particular on the tax schemes put in place by KPMG, providing a financial vehicle to enable certain of its clients to reduce their tax payable. In light of the internal documents relating to this plan provided to the committee by KPMG on May 17, 2016, this could be a form of tax evasion, so of something illegal.
All these problems are extremely complex, as you acknowledged and pointed out in your speech. Today, for example, we can read in La Presse that data from the Canada Revenue Agency show that its recent efforts to combat tax evasion by the richest Canadians have not led to any charges or convictions. The same kind of article can be read on CTV.
Experts have appeared here to tell us that there is a feeling of impunity toward the government and the CRA, among the users of the tax havens and the tax law experts who create their schemes. We have been told that to put an end to this kind of behaviour, the United States brought out the heavy artillery to deal with KPMG: investigations by the Internal Revenue Service, threats of searches and of charges of obstructing justice, penalties, criminal charges of fraud and conspiracy against the firm and its officers, and threats to charge the firm with being a criminal organization. Here, there has been none of that. Instead, the CRA has proposed voluntary disclosures and still nothing has been resolved with the clients who did not agree.
The experts reminded us that it is not possible to control what we can't see. Unfortunately, as you said in your testimony, the Canada Revenue Agency does not have access to all the information for doing these audits. For example, KPMG keeps going to court so it doesn't have to share its information with the CRA. The experts denounce the appearance of impunity and unfairness for the rich clients and the companies that create these schemes. They conceal their information from the CRA and contest the requests in court. At the committee, it is extremely difficult to get answers to our questions, to shed light on this entire matter. There are even witnesses who refuse to appear, in spite of the summons issued by the committee. These are no jokes!
I repeat: it is important to shed light on this entire matter and get to the bottom of things. We have to be able to put in place laws, regulations, processes and guidelines to prevent any form of tax evasion. That is why I am asking you, as Minister of National Revenue, to initiate a public inquiry into the matter of the schemes created by KPMG that enabled Canadian taxpayers to collect money in the form of gifts or otherwise, money that was not included in the tax returns of the recipients, from companies in the Isle of Man or any other country, as section 231.4 of the Income Tax Act empowers you to do. I believe the committee could also adopt a motion to that effect a little later.
Do you want to initiate a public inquiry, Minister, please?
Thank you.
View Diane Lebouthillier Profile
Lib. (QC)
Thank you, Mr. Chair.
I thank my colleague for all of his preamble and his long question. I have sincere sympathy for the victims of fraud and I understand how much it can affect their lives. However, I can say that under the provisions of the Income Tax Act, I can't comment on any specific case. As my colleague knows very well, I cannot give and I will never give the CRA any instructions concerning criminal investigations.
As is the role of our government, my role is to provide tools and resources so that the CRA, which is autonomous, can do its own work. Out of respect for the obvious principles of judicial independence, politicians must not ever interfere in investigations. That would be really very inappropriate.
View Gabriel Ste-Marie Profile
BQ (QC)
If I may, that is not at all what I asked. The committee's limitations are clear, and the only solution, the only tool, for shedding light on the entirety of KPMG's offshore activities is the public inquiry.
We are not talking about an investigation before the courts. You, as the Minister of National Revenue, are the only one who has this power under the Income Tax Act; you can ask for a public inquiry to be held to get to the bottom of things and shed light on the situation. In my opinion, that is what should be done.
I will ask you again. Please, can you ask for a public inquiry to be held into this entire matter so we can get to the bottom of things?
Thank you.
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Chair, as you all know, committees are independent. You manage your own business.
What I am seeing at present is that my colleague wants to play police officer. I invite him to give up his seat as a member and apply for a position as an investigator with the RCMP, where there are vacant positions. He would probably be happier there than in his present position.
View Gabriel Ste-Marie Profile
BQ (QC)
I am extremely disappointed to hear such nonsense being given as an answer.
In the United States, a senate committee held an inquiry that has changed things. It is our role to do that here. My role as an elected representative, and our role as a committee, is to ask the minister to initiate a public inquiry to get to the bottom of things. There are enough points to be raised to ask for that.
We are not getting any answers, other than being told to change jobs. What a load of nonsense. She is the one who has the power.
Is she going to do it, yes or no?
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Chair, I am going to ask my colleague to vote on budget 2021, which sets out proposals that really are even more useful for eliminating the loopholes used to avoid paying taxes in Canada, and that allocate additional money to the CRA so that it can modernize and improve its capacities.
In addition to all the work done and the agreements signed by the countries, I am also very happy to see that the United States has embarked on the same path. We are therefore going to work in collaboration with our partners. As I said at the outset, this is a long and complex issue, and I understand very well that the public are offended. We are continuing our work and we truly want to combat tax evasion. This is a priority for our government.
View Peter Julian Profile
NDP (BC)
Thank you very much, Mr. Chair.
I also want to wish you a happy birthday. Someday we will celebrate together, I'm sure.
I would like to welcome the minister and Mr. Gallivan.
I'm going to continue in the same vein as Mr. Ste‑Marie.
We are talking about thousands of Canadians, victims who have lost all their life savings. We know very well that in the frauds committed by Norshield and Mount Real, there are thousands of Canadians who lost everything. The system has never got justice for them.
Minister, you have been the minister for six years. What do you say to the victims, like Janet Watson who appeared before the committee, who say that the government has done absolutely nothing to protect them or to bring the guilty parties to justice?
View Diane Lebouthillier Profile
Lib. (QC)
Mr. Chair, I thank my colleague for his question. We know that I have very sincere sympathy for the people who have been victims of fraud, just as he does. I truly understand how much this can affect their lives.
However, as I said, and it doesn't bother me to repeat it, our government respects the CRA's status. I can't instruct the CRA to initiate audits and I do not intervene in audits. This is what protects the integrity of the tax system. We are going to continue doing the work we do, and because we want to keep moving forward, I invite my colleague to vote for the budget that has been introduced. It contains even greater resources to tighten the net and make sure that people pay their fair share.
If my colleague wishes to get any more technical and administrative information, Mr. Gallivan can answer him.
View Gabriel Ste-Marie Profile
BQ (QC)
Thank you, Mr. Chair.
If we want to get to the bottom of the tale of the shell companies set up by KPMG, if we want to get to the bottom of the tale of the thousands of small investors like Ms. Watson who were swindled, the only solution, according to the experts, is a public inquiry. Tax law expert André Lareau is one of the people saying that.
The role of requesting an inquiry has been assigned to you, Minister, and no one else. I also want to remind you that it was thanks to a whistle-blower inside the CRA that we got wind of the deals that were offered to the Isle of Man fraudsters. The reason the CRA's investigators are unhappy is that the order came from higher up. It takes a public inquiry.
Are you going to call a public inquiry, as you are given the authority to do by section 231.4 of the Income Tax Act, yes or no?
View Diane Lebouthillier Profile
Lib. (QC)
I thank my colleague for his question.
As I said, I can understand very well. I have enormous sympathy for the people who have been victims of fraud. I know how much this must affect them.
Out of respect for the obvious principles of judicial independence, I believe that politicians should never interfere in investigations.
View Gabriel Ste-Marie Profile
BQ (QC)
It isn't interference.
Minister, you are the only person in Canada with the power to shed light on it and get to the bottom of things. That is the power you have. You are the minister. Sympathy is not enough.
Are you going to initiate a public inquiry?
I understand it's a no. The message you are sending to everyone who has been swindled is that you are sympathetic, but you aren't going to do anything. That is unacceptable. That choice is the choice to do nothing to get it moving, to do nothing to get to the bottom of things. That is a definite sign of incompetence.
View Diane Lebouthillier Profile
Lib. (QC)
I can understand my colleague's frustrations. For our part, we govern. We establish priorities.
View Diane Lebouthillier Profile
Lib. (QC)
That is what my colleague will never be able to do. I have told him repeatedly that the Canada Revenue Agency is independent. I cannot initiate an investigation—
View Gabriel Ste-Marie Profile
BQ (QC)
You are the only person who can request a public inquiry. It would seem that you do not even know this. That is unacceptable.
Results: 1 - 15 of 487 | Page: 1 of 33

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