Bill S-17 (Historical)

Tax Conventions Implementation Act, 2013

An Act to implement conventions, protocols, agreements and a supplementary convention, concluded between Canada and Namibia, Serbia, Poland, Hong Kong, Luxembourg and Switzerland, for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes

This enactment implements four recent tax treaties that Canada has concluded with Namibia, Serbia, Poland and Hong Kong. This enactment also implements amendments to provisions for the exchange of tax information found in the tax treaties that Canada has concluded with Luxembourg and Switzerland.
The tax treaties with Namibia, Serbia, Poland and Hong Kong are generally patterned on the Model Tax Convention on Income and on Capital developed by the Organisation for Economic Co-operation and Development (OECD). The amendments to the treaties with Luxembourg and Switzerland ensure that their provisions for the exchange of tax information reflect the current OECD standard on this matter.
Tax treaties have two main objectives: the avoidance of double taxation and the prevention of fiscal evasion. Since a tax treaty provides relief from taxation rules in the Income Tax Act, it becomes effective only after being given precedence over domestic legislation by an Act of Parliament such as this one. Finally, for each instrument implemented by this Act to become effective, it must be ratified after the enactment of this Act.

Bill S-17—Time Allocation Motion

[Peter Julian, NDP, Burnaby—New Westminster, BC]

It is the forty-fourth, the member for Algoma—Manitoulin—Kapuskasing is reminding me.

Mr. Speaker, the government has even lost track of the number of closure motions it has brought in. Every single time, it has another excuse, something else it rolls out to say it should not be debated in Parliament for this reason or it should not be debated in Parliament for that reason.

The reality is that the debate that should be held on this issue is around the Conservatives' failure on tax evasion. They slashed a quarter of a billion dollars from CRA. They have killed 3,000 positions for people who are supposed to be looking out and doing the follow-up through CRA. Of course, the Conservatives do not want that to come out in public, so they want to shut down debate. They want to ensure that in Parliament we are not debating the reality of the current government's complete and utter failure on tax evasion.

Now, the other reality is that the government gets it wrong when it rushes through legislation, as members know. There are a number of pieces of legislation before the courts, and there are others that have had to be redrafted because the Conservatives botched the drafting in the first place. That is another important role for Parliament, to ensure we can identify where the Conservatives have screwed up this time.

My question for my hon. colleague is simply this. Why do Conservatives constantly try to shut down debate when we all know it is their record that is the problem?

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, to answer the question on records, today we reached another record milestone. We moved tax freedom day two weeks ahead. That is because of this government's policies of not just sitting in the House and debating issues but actually getting it done. If we waited for the NDP to support us on everything it opposes, we would probably not have a million more Canadians working today than were working in the depths of the recession in 2009. Every successive budget, every successive policy change that we put forward, to not only help Canadians get back to work but to help those who could not find a job have access to EI, the NDP voted against. It would have us in the position of some of the countries we look at in Europe that are in recession.

Canada has an incredible record. When he talks about records, I do not mind repeating the fact that last month 54,000 young people got a job. Youth employment has been a challenge for us all. We have had many questions in this House, and rightfully so. We are concerned about our youth. If we were to travel to Europe, we would see 60% youth unemployment. We do not have that here. Ours is still too high, but there are 54,000 more of them working this month than last month. We think that is a pretty good record.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, as we mentioned a while ago, this is the 44th time the government is limiting debate on important bills. If they were that important, why did it not bring them forward before? That is the question of the day, really. Also, if they were that important, why were those bills not actually tabled here in the House, as opposed to in that other house of unelected senators?

The member across talked about the fact that we actually voted against certain bills and that this is why the government is moving time allocation. It is talking about the EI bills. Let me tell members that we voted against the EI changes in the budget because they do not respond to the needs of Canadians and the government is going in the wrong direction.

He also talked about the concerns for youth. Yet, here is a government that has cut back on that.

I spoke to a gentleman just this past weekend who used to work for the federal government, in the industry part, in skills training. He said we are not going forward; we are actually going backward.

My question for the member is this. Why does the government continue to not allow proper debate to take place where it should be taking place, right here in the House, and what was the urgency on this?

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, there certainly is urgency to most of these pieces of legislation that we are putting forward. There was certainly urgency with respect to the budget bill that was passed just a few moments ago in the House.

Talking about urgency, if these tax treaties are not passed in this spring session of Parliament, they will not come into force on January 1. They need to be passed in the spring session in order to be enacted with all the countries with which we are working. There is urgency to this legislation. We need to get it done.

We were not sure if the opposition wanted to debate these. The NDP is sensitive on this. That party has individuals in its caucus, apparently, who do not believe in paying taxes. We are concerned about the Liberals because they are protecting a senator who has pretty much taken her money offshore and hidden it in a tax haven. We are a little concerned about how serious those parties are about protecting taxpayers' money.

We have put in place 75 different changes to tighten up tax loopholes. That is the right direction to go in, and we will continue moving to protect taxpayers.

[Bernard Trottier, Conservative, Etobicoke—Lakeshore, ON]

Mr. Speaker, I would like to thank the minister for clarifying the importance of getting these tax treaties passed. He mentioned that if this legislation is not passed within this calendar year, we might not be able to implement things by January 1, 2014. It might have to be postponed until January 1, 2015.

Could the minister perhaps explain the importance of tax treaties when it comes to overall trade with certain countries? If tax treaties are not in place, what would be some of the impediments to our trade with various countries, and what would that mean ultimately for jobs and economic growth in Canada?

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, we cannot reiterate that enough, and I thank my hon. colleague for raising that.

The fundamental purpose of the bill is to prevent double taxation. People do not like paying their taxes but they understand that if we want social programs, if we want to fund education or health care, then we all have to pay our taxes, but we should only pay our fair share of taxes.

International companies can move their money around. We want to make sure that, if taxes are not paid in this country, then they are indeed paid in the country where that company is making its profits. That is one important issue, especially the more international companies become. Allocating taxing rights between Canada and its treaty partners over different categories of income is very important. This gets very complex. I will leave it up to the accountants to perhaps explain it in detail.

Prescribing the method of relief for double taxation for different types is important. We need to describe that, and it is in the legislation. I would encourage all hon. members to read that.

The fundamental principle behind this legislation is preventing the avoidance and evasion of taxation. We have willing partners who are going to sign on to this agreement. It is time to move on to protect tax integrity in this country.

[Romeo Saganash, NDP, Abitibi—Baie-James—Nunavik—Eeyou, QC]

Mr. Speaker, one of the things that strikes me in this debate on a time allocation motion is that the government seems to forget that Canadians elected us not just to represent them in this august chamber, but also to provide good governance for all Canadians. We must work for all Canadians in the House of Commons and the committees, the institutions that are here on Parliament Hill.

In the current context, it is very difficult to convince the majority government that it is not necessarily taking the best approach. This time allocation process prevents us from making adjustments to certain bills, which should not be discussed at this time and are not in the interest of Canadians. That is why this process is being used.

I get the impression that we are again being prevented from debating a bill that has some serious flaws. We were supposed to debate Bill S-2 earlier, but the agenda is being changed again today. This is one of many examples that illustrate that there are flaws. The government just seems to want to leave as soon as possible and not correct the flaws that exist in a number of bills.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I would remind the hon. member that the motion says that there are five hours more of debate. I would think that if the discussions are precise, pointed and accurate, without members elaborating as the preceding member did, we could perhaps hear those comments. I would encourage the hon. member to come prepared to have a very specific debate.

There was a question before about the introduction of these pieces of legislation. Traditionally, these treaties are introduced in the Senate. There is time in the Senate for those proceedings. The House is a very busy place. The Senate has time to review them and to provide the background information. It came from the Senate, and it is time we moved it forward.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I am sure that the minister is aware of a gentleman by the name of Dimitri Soudas. He should know of him. He was chief of staff for the Prime Minister's Office. He is no longer there. He had serious tax issues. He was not paying his taxes for a number of years. We are looking at the current scandal in the PMO with regard to the Senate. He likes to talk about individuals who do not pay taxes. This is yet another example, right in the Prime Minister's Office.

I am wondering if he could comment on Mr. Soudas and what he feels Mr. Soudas should be doing or why it is he did not pay his taxes to Revenue Canada. Does he have any thoughts on that?

[The Acting Speaker, Conservative, Barry Devolin]

Before I go to the minister, I would again remind all hon. members that questions and comments should be related to the bill before the House. I understand that in the course of discussions, examples are used and the debate wanders at times, but I would ask all hon. members to do their best to focus on the matter before the House.

The hon. Minister of State (Finance).

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I try not to interfere in individuals' lives, as other individuals in the House might want to do. My advice to Mr. Soudas would be to go back and get the raise due to him, because he never was chief of staff to the Prime Minister.

What we are talking about are international agreements in which Canada and other countries agree to protect their tax bases. I referred earlier to base erosion and profit shifting. That is the erosion of a tax base. The opposition may not understand that concept. Basically, it is making sure that people and corporations pay their fair share of taxes either in this country or in other countries where they may be doing business. It is no more complex than that.

There are about 30 pieces of legislation. We have many of these agreements in place, and we continue to put them together to protect our tax base. Not only that, but some of the countries we are dealing with today I would suggest are still developing countries, so we want to help them protect their tax bases. It is very important, not just for us but for them, that we move forward on something these countries have both agreed to for the benefit of their taxpayers and ours.

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, we are not actually talking about Bill S-17 at the moment. We are talking about the government's motion to limit debate so that we cannot talk about Bill S-17.

Over the last number of weeks, what we have heard from the government is that if we disagree with it, we are anti-Canadian and traitors. If members do not speak properly, then the Conservatives are going to move time allocation on these various bills.

It is not up to the member to determine how I am going to present myself in the House. It is up to my constituents. I am here because the people of Dartmouth—Cole Harbour who voted for me decided that they wanted me to come here to speak to bills, such as Bill S-17.

With its tendency to bring in time allocation, the government is suggesting that it is going to decide how much time I am going to have to speak on it, regardless of what I want to say. The member opposite now suggests that if he decides that I am not articulate enough or am not getting to the point quickly enough, as he would identify it, the government is going to bring in time allocation on that basis. I have wondered why it is that it will not agree to abolish the Senate, but now I understand that it wants to abolish this chamber. It wants to eliminate all free speech for the commoners, for the people of Canada.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, that was a rather mythological sort of question, I would suggest. I am not presuming that my hon. friend across the way would not be precise and concise in his presentation. I have listened to him on many occasions. I listened to him in the leadership debate for his party, and he was very articulate. We encourage him to continue with that. He will have time during this debate to actually bring the concerns of his constituents forward.

Forgive me if I repeat myself, but we have listened to many speeches in this House that are basically a mirror image of the speech that was just presented. I do not think that is a good use of those hon. members' time or of members' time on this side. We actually want to move forward with the protection of the tax system in this country and in the countries we are dealing with in Bill S-17.

[Hélène Laverdière, NDP, Laurier—Sainte-Marie, QC]

Mr. Speaker, I have two basic questions about this specific bill.

If it was so urgent, how come the Conservatives were not able to arrange for us to have the time we needed to thoroughly debate this bill? This is in itself an example of their incompetence, and it shows why it is important to take time to study bills thoroughly. We cannot trust the bills they give us. That is the first thing.

The second thing is more general and has to do with the number of time allocation motions we have had under this government. This has to be a Guinness world record. My question is very simple. The Conservatives are preventing us from thoroughly discussing bills in committee and are moving time allocation motions here in the House. What are they afraid of? Can they not back these bills up?

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, with 100 days of debate, I would repeat what I said earlier, for anyone listening to this debate at home.

We have very limited time to actually sit in this House or in the other chamber and debate substantive issues. One hundred days is a big chunk of our parliamentary calendar. We think it is appropriate that we now move forward and get this bill to the next stage. It is very important and critical for those countries and for fairness to the taxpayers in all the countries involved.