After a couple of aborted attempts to hear from the minister for small business that never got off the ground, the Senate heard instead today from the minister for national revenue, Diane Lebouthillier. Senator Claude Carignan led off, asking about the “amnesty” granted to KPMG for setting up tax havens. Lebouthillier insisted that the CRA does not use the term amnesty, and that they are are working against tax evasion and tax avoidance. Carignan wondered if the “special offer” could apply to other firms who could ask for the same arrangement for their own clients. Lebouthillier noted the billions recovered last year and noted the study done into the operations of KPMG and that the CRA operated within its rules.
Senator Downe led for the Liberals, and asked about the off-shore advisory panel struck by the minister and when its report would be received and if it would be made public. Lebouthillier said that an initial report on the tax gap would be tabled in a few weeks, and in a supplemental for clarification, Lebouthillier noted that it would be made public along with the associated documents.
Senator Smith asked about Bill C-2 and its raise the taxes on the wealthy, and if there was a definition of the “Middle Class” therein. Lebouthillier noted the region she comes from and the groups who are being helped by the measures the government is putting into place, but didn’t actually provide that definition. Smith worried about how the relatively wealthy are still benefitting under the new system, but Lebouthillier didn’t really answer.
Senator Dawson asked about service delivery guidelines at the CRA around charities, and Lebouthillier noted an improvement in telephone services over the past six months, thanks to historic budgets that would help her fulfil her mandate letter.
Senator Daniel Lang raised the concerns found in the Senate’s national security committee study on terrorism, where FINTRAC was referring files to CRA around charities with suspicious links. Lebouthillier noted the focus on charitable organisations in her mandate letter, and the review that was going on. Lang rose again to zero in on the 120 files forwarded by FINTRAC and whether they were being investigated. Lebouthillier said that she had taken note of the question and would look into it in order to get an answer later.
Senator Ringuette asked about automatically signing up seniors for the GIS, to which Lebouthillier said that she was horrified by seniors poverty figures and that she was working with Minister Duclos in order to arrange paying arrears to those seniors, and noted that they have announced that the GIS would be made automatic. A supplemental on the same topic earned the platitude that “Canadians don’t work for the CRA — the CRA works for Canadians.”
Senator Patterson asked about tax filing in Inuktitut for people in Nunavut, and how the outreach programme has been greatly reduced. Lebouthillier noted that she shares the concerns. Patterson asked about certain forms only available in English and French needed by Inuit elders to prove their northern residence and other barriers they face. Lebouthillier noted that she was working with the minister of Indigenous affairs to help improve the situation.
Senator Joyal asked about tax havens and the treaties that Canada has with countries that host them. Lebouthillier pledged to work on combatting these havens and that they would have twelve times as many strategies, targeting more high-risk taxpayers with more auditors, going from 600 to 3000 audits per year. Joyal cautioned about her mixing tax evasion with tax avoidance, and he wanted review of those treaties that allow legal tax avoidance. Lebouthillier returned to points about the measures being taken to combat immoral actions that nevertheless are legal, and they would take measures with the Department of Finance. Joyal took an additional supplemental, asking what role that Canada would play within the OECD to review the international system that allows these havens to exist. Lebouthillier noted the agreement signed in Beijing and that they were continuing to engage on the international level.
Senator McIntyre raised the Panama Papers, and an investigate into their findings. Lebouthillier recalled the announcement she made that CRA has acquired these documents and are working on them.
Senator Greene Raine worried about foreign-funded charities holding up resource projects. Lebouthillier noted that they were winding up their audit programme and would be meeting with the charitable sector to find a new approach going forward.
Overall, while Lebouthillier was a bit repetitive in a few of her responses, particularly in her constant references to her mandate letter, I will note that this was quite an antidote from the way that QP happened down the hall just minutes previous. The Senate was asking much more substantive and reasoned questions, on topics that have been silent in the Commons while there is much braying about an electoral reform referendum. MPs, once again the Senators are proving that they’re the grown-ups in our parliament. This should be a wake-up call.
Sartorially speaking, snaps go out to Senator Diane Bellemare for a grey skirt with a subtle black pattern and a black structured overshirt with three-quarter sleeves and a teal top underneath, and to Senator Dennis Dawson for a blue-grey jacket with a white shirt with blue stripes and a red and navy bow-tie. Style citations go out to Senator Larry Smith for a taupe suit with a pale yellow shirt and a grey striped tie, and to Senator Nancy Greene Raine for a pleated/rumpled black jacket with a cream top with a cream collared shirt with a beige skirt.