Mr. Speaker, I am very pleased to take part in the debate on Motion No. 485, moved by my colleague from Rivière-du-Nord, which deals with tax evasion through the use of tax havens.
The use of tax havens robs the Canadian tax base of billions of dollars every year. The direct impact of tax evasion is felt by all Canadians, because the government has to do without significant income that could be used to improve services and social programs provided to all Canadians.
OXFAM International's 2013 estimates illustrate how very serious the problem is. According to that organization, at least $18,500 billion is hidden by individuals who shelter their money in tax havens around the world. That represents a loss of more than $156 billion in tax revenue for governments.
In Canada, independent estimates have indicated that the tax revenue lost to offshore tax havens might be somewhere between $5 billion and $7.8 billion a year. Obviously, it is a known problem. Nonetheless, observers note that the problem keeps growing.
A lobby group by the name of Canadians for Tax Fairness indicates that Canadians have now invested $59 billion in Barbados, some $30 billion in the Cayman Islands and $20 billion in Luxembourg. Those are the top three tax havens that harbour Canadian capital. This topic is very relevant, especially given that we are debating this motion as Canadians are in the process of filing their income tax returns for 2013.
Canadians contribute honestly, as do small and medium-sized businesses. Canadian middle-class taxpayers and small and medium-sized businesses are carrying the majority of the tax burden in Canada. They are the ones who will pay the most taxes, while others hide their money in tax havens. Again, it is a question of justice and fairness for all Canadian taxpayers.
However, the fight against tax evasion is definitely not a priority for the Conservative government. It has demonstrated that on a number of occasions. In fact, since the Conservatives came to power, the number of investigators assigned to combatting tax evasion has dropped. Anything for a balanced budget, no matter what the cost or the consequences. The Conservatives have slashed the Canada Revenue Agency's budget by about $250 million, which hinders the agency's ability to effectively hunt down tax evaders.
The government will try to convince us that their tactical anti-tax evasion squad is the answer. However, what they are not saying is that their squad is actually the result of a reallocation of previously announced funding to create a team of just 10 to 12 people tasked with finding tax cheats. That will not fix the problem.
I think that we need to determine the scope of the problem and then implement the measures required to effectively address this significant issue. That will take a certain amount of dedication, which our Conservative colleagues do not seem to have.
Given the scope of the problem, my colleague from Rivière-du-Nord moved this motion, which calls on the federal government to thoroughly study and assess the amount of tax revenues lost to tax havens.
This motion builds on the official opposition's recommendations during the Standing Committee on Finance's study on tax fraud and the use of tax havens. Unfortunately, as usual, the Conservatives flat out rejected our recommendations. I believe the NDP is the only party that truly has the will and the determination to win the fight against the use of tax havens.
Unfortunately, Canadians cannot count on the current government, just as they could not count on its predecessors. Every one of them has allowed the situation to degenerate. As I said, the problem is getting worse.
Why have they not done anything? The losses are tremendous, and taxpayers are the ones paying the price.
Taxpayers will have to pay a bigger share of the cost of government programs and services. Because of the loss of revenue, the government is cutting departmental budgets. That additional revenue could have maintained or saved many programs and services. This is terribly irresponsible of the government.
Billions of dollars are being lost every year, and sadly, the government does not seem to think this is a priority. We do not want an estimate that fails to acknowledge the full extent of the problem. We want the government to measure, as precisely as possible, how much tax revenue Canada is losing because of the use of tax havens. That is the only way to determine the extent of tax evasion in Canada. The government's failure to do anything about this problem is appalling.
The United Kingdom, the United States and even Australia, to name just these three allied countries, published official estimates of how much these tax havens are costing them. Why does the government not conduct a similarly thorough study in order to effectively address the problem? This shows that the government is doing absolutely nothing to assess or combat the use of tax havens. Unfortunately, the government has no intention of carrying out such a study. How can we seriously address a problem if the government refuses to properly assess it?
In order to determine how much tax evasion is going on, the motion calls on the Canada Revenue Agency to provide the Parliamentary Budget Officer with the information necessary to prepare an estimate.
The motion also calls on the Auditor General or the Parliamentary Budget Officer to provide estimates of the marginal revenue of additional Canada Revenue Agency resources in the area of tax evasion.
Finally, the motion requires the Auditor General to evaluate, on a regular basis, the success of the Canada Revenue Agency in prosecuting and settling cases of tax evasion.
The NDP believes that the Government of Canada is responsible for protecting its tax base. This is a matter of fairness and justice for all taxpayers. Everyone has to do their fair share, and those who use tax havens should not be allowed to avoid paying taxes on the money they are diverting through such means.
The motion is just the first step in the pressure the official opposition is going to put on the Conservatives so that they truly address this problem and work to combat tax evasion.
The government should be doing the opposite of what it is doing now. It should be ensuring that the Canada Revenue Agency has all the resources it needs to prevent tax evasion and, if necessary, investigate and prosecute cases of tax evasion. Ultimately, the government needs to take responsibility and ensure that the tax system is fair and equitable for all Canadian taxpayers.
The NDP will hound the government until it properly represents the interests of all Canadians and gives the Canada Revenue Agency the resources it needs to effectively combat the use of tax havens. That is this government's duty. Unfortunately, we cannot help but notice that it is failing in that duty.