Publication Search

Good morning, everyone. Thank you all for being here and for your great work.

I know that budget time is not an easy time. We can see that you have worked extraordinarily well. I thank you and congratulate you on another fine budget and another exemplary implementation act, as one would expect from the Department of Finance.

Ms. Hunt, I am interested in the proposals, which are good measures. I thank you for that. We need to move these issues forward, as this is obviously very important.

Where exactly do you think we are on risk management and money laundering and other financial proceeds of crime? I know that the Financial Action Task Force, or FATF, has made many recommendations to Canada over the years. I would like you to tell us where we are in terms of implementing international standards in this area. Have we implemented all the recommendations, or do we still have work to do?

Thank you, Ms. Hunt.

I would like to say that the FATF international standards are really minimum standards and that we can always do more. However, I am concerned—as are my colleagues; we have talked about this a lot—that we are not even complying with these minimum standards, which are also imposed on tax havens or countries that do not have the same capacities as us. What is preventing us from meeting these standards?

Thank you.

I am really looking forward to seeing Canada become the top country in the implementation of minimum standards. You can count on this committee to assist you in that task.

I will change the subject a bit. I am very encouraged by the measures in the budget that will provide Canada with a lot of success in the green economy of tomorrow. A lot of investments have been announced to that end.

On the other hand, one of the things that I hear a lot from businesses in my riding, but also from across Canada, is that Canada may be a little bit behind in its research and development efforts. In committee, we talked about the challenges facing manufacturing and other sectors in attracting more investment in research and development.

So I'm very pleased to hear that the Canada Innovation Corporation will be established to strengthen that. Can you give us more details on how that Crown corporation will be set up? What tools will it have?

Thank you very much.

As you will note, Ms. Wong, this committee is very interested in what we can do to strengthen our legislation on proceeds of crime and terrorist financing, among other things. And it has recommended twice that the registry be brought into force. I know you said that you've worked very hard to move this forward. I would appreciate it if you could put in writing what we are missing to meet our standards and what barriers are making it difficult. This would help us better understand your role and help you better.

I want to go back to the Canada growth fund. There are a lot of projects related to that fund and I would like to understand the nature of the projects we will try to fund with the private sector. I'd also like you to give me some concrete examples of the sectors in which we will be investing. What is your plan?

In another context, we've talked a lot about green finance or sustainable finance.

In terms of taxonomy, a lot of work is being done by the International Sustainability Standards Board. I know it's not directly related, but how do you choose the best projects that lead to net-zero emissions and help achieve sustainability goals?

The taxonomy is missing from the budget, unfortunately, while the European Commission and other countries, for example, are moving quickly on this. Yet Canada seems to be waiting. However, it would be important to adopt certain standards in order to properly select projects. Will taxonomy play a role in selecting the best projects?

I want to make sure I understood correctly. We are going to rely on international standards, but the people at the Department of Finance are working to develop standards for Canada to ensure that projects lead to net zero.

We are very interested in seeing the department's progress on taxonomy, since it is related to the motion on green finance that we are studying.

Thank you, Mr. Chair.

I would first like to congratulate you on all the work that you and your teams are doing to produce these budget implementation bills and the budget itself. I know that this work takes the entire year.

I'm going to ask my question and I think we will come back to it in the next round. I primarily want to congratulate you for the courage you show in tackling a subject that is of extreme importance for all Canadians. Even if people have a salary and are part of the middle class and pay their taxes, a lot of people take advantage of tax loopholes and the freedom that, unfortunately, the courts have permitted by not halting those loopholes.

You have proposed some extremely important measures in the budget that aim to restore integrity to the Income Tax Act, particularly with the general anti-avoidance provision and the consultation that it involves.

I have just introduced the subject I will address in the next round. Thank you.

Thank you.

I will pick up where I left off. In the budget, important amendments have been proposed to restore a lot more integrity in our tax system and make sure that people pay their fair share of tax. There are going to be major changes.

I have an initial question concerning your consultation. You announced that you were going to hold a consultation until May 31 before releasing the revised legislative proposals. Do you think the period announced in the budget is going to allow for the committee to see the legislative proposals in the Budget Implementation Act, 2023, No. 2?

Thank you.

As a last point, I note that there is going to be a penalty for misuse of the tax law. This is a much anticipated change. Will there also be a penalty for third parties? A lot of accounting and legal firms, for example, suggest loopholes to people who are not very familiar with the Income Tax Act. Are those firms going to receive a penalty?

Okay. Thank you.

Can you make a connection between the proposed mandatory disclosure rules and the proposed measures to restore integrity?

Unfortunately, my speaking time is up.

Thank you.

Thank you, Mr. Chair.

Having been a public servant myself for a number of years, I can tell you that we understand the situation very well. We all hope there will be a satisfactory resolution, an agreement that is fair for everyone, for both the employees and the government, but also for all Canadians.

Regarding the motion, I know it comes out of good intentions. However, I have to point out that in Quebec, in most cases, federal and provincial tax returns are submitted together. A large number of people in Quebec use software that combines the two. Unfortunately, if we adopt this motion, we might be misleading some people in Quebec who might decide to fill out their tax return and send it. That would result in penalties in Quebec, because Quebec is not required to follow these instructions, obviously.

So it would have consequences for people in Quebec that I don't want to be associated with. That is why I do not support the motion.

Mr. Chair, I just want to point out that measures are available.

There's taxpayer relief for taxpayers in conditions where they can't file for X, Y and Z.... The CRA already has a process to waive penalties and interest due to circumstances that are out of the control of taxpayers.

I'm totally ready. Yes.