Tax Convention and Arrangement Implementation Act, 2016

An Act to implement a Convention and an Arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and to amend an Act in respect of a similar Agreement

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment implements a convention between the Government of Canada and the Government of the State of Israel for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and an arrangement between the Canadian Trade Office in Taipei and the Taipei Economic and Cultural Office in Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. It also amends the Canada–Hong Kong Tax Agreement Act, 2013 to add to it, for greater certainty, an interpretation provision.

The convention and arrangement 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 convention and arrangement have two main objectives: the avoidance of double taxation and the prevention of fiscal evasion. Once implemented, they will provide relief from taxation rules in, or related to, the Income Tax Act. Their implementation requires the enactment of this Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Tax Convention and Arrangement Implementation Act, 2016Government Orders

December 8th, 2016 / 5:10 p.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, the member made reference to the middle-class tax cut and tried to disappoint my constituents. I think it is important that the member acknowledge that the middle-class tax cut, which is a super-fantastic thing, because over nine million Canadians will benefit from it, is one aspect of a very progressive budget.

I can assure him that many of my constituents who have children, and many of my constituents who are seniors and rely on the guaranteed income supplement, will be receiving literally hundreds, and in some cases thousands, of dollars more. That does not even deal with the middle-class tax cut. It is all part of the budget. There is a net gain for my constituents, and I am very proud of that fact.

With respect to the question the member posed regarding trade and tax evasion, I share the concern about individuals who choose to avoid paying taxes. I am very proud of the fact that we have a minister responsible for revenue who has allocated, I think, close to $400 million, and please do not quote me on that, to fight tax evasion. I see that as a good thing.

If we take it all together, I would highly recommend that the member reconsider his position on the budget, because the majority of his constituents will benefit.

Tax Convention and Arrangement Implementation Act, 2016Government Orders

December 8th, 2016 / 5:10 p.m.
See context

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Madam Speaker, certainly these are important issues. I might recommend to him a fact-finding trip to Taiwan and Israel in the month of February. I know I would certainly be prepared to pick up the slack in this place.

I want to ask him about the trade initiatives of the present government. We are seeing legislation come forward that kind of follows through with and implements things that were begun under the previous government.

We are pleased to see the bill come forward. We are pleased to see the continuation, the following through, of that, but we hope, as well, to see the present government undertake additional new initiatives on trade.

We are seeing the Canada free trade deal next week, which is something that was begun under the previous government. We have had CETA, again negotiated under the previous government.

Could the member tell us whether there are additional new trade initiatives the present government is undertaking? We are pleased to see the continuation of those things, but we would also like to see actual additional proposals, because it is so important that we continue to move forward with this trade agenda well into the future.

Tax Convention and Arrangement Implementation Act, 2016Government Orders

December 8th, 2016 / 5:10 p.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, I can understand why the Conservatives are a little nervous about this issue. According to the parliamentary library, there are 12 trade agreements. I could list off the countries or I can provide the information to my colleague across the way. I think what makes the Conservatives nervous is that they did not quite get the job done on CETA.

CETA was actually signed off by our minister, who did an outstanding job in finalizing it and getting it across the goal line. The Conservatives used to count that as 28 trade agreements. If we use their math, it would mean that they are actually being outperformed by this government. We did in less than 12 months of action what took the Conservatives more than 10 years. I know that they will be a little sensitive. They do not like to be outperformed.

Even if they look at the bottom line of trade deficits and so forth, one of the things the Liberals have consistently done is deliver trade surpluses. The best case in point is the multi-billion dollar trade surplus Mr. Harper inherited, and he turned that into a deficit. We are hoping in time to turn Mr. Harper's path toward ongoing trade deficits into a more positive light. It might take us a while.

We understand the importance of trade agreements. We will continue to push for trade agreements. I have a personal favourite, that being the Philippines. We have a bit of an agreement there. I would love to see something more, but that is more a personal thing.

I can assure the member that we have a very aggressive government that will continue to look for opportunities that will expand Canada's trading opportunities. If that means an agreement, an association, or just looking at side agreements and working with our provinces and different stakeholders, we are prepared to do that.

Tax Convention and Arrangement Implementation Act, 2016Government Orders

December 8th, 2016 / 5:15 p.m.
See context

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Madam Speaker, the member used this favourite Liberal phrase, “did not get it done”. He should not let the foreign affairs minister hear him use that phrase. It might bring back some bad memories.

I want to follow up on the member's comments about CETA. I think the member knows that we negotiated it. It was gift-wrapped and given to the government, and through various shenanigans and the Liberals' attempt to put their stamp on it, we almost lost that deal. In the end, certainly, we were very happy to see that completed. It is in Canada's best interest.

We are in a not bad place when it comes to trade. If the Liberals are trying to compete with us on trade, they are going to have a hard time doing it. Hopefully it is an effort they will undertake, and hopefully they will try to learn policy lessons from us in other areas.

The member spoke as well about the deficit. He knows that we had a balanced budget at the end of the previous government's tenure and that the debt-to-GDP ratio went down under Stephen Harper from about 34% to 31%. Projections are that they will go up to 38% now under this new finance minister.

The government talks about its economic record. Since the member brought up deficits, I wonder if he will use this opportunity to tell us when the current government will bring us back to balanced budgets. I have asked this question many times and still have not had an answer. I know that the member for Winnipeg North will be able to concisely drill down and give us the response to that question.

Tax Convention and Arrangement Implementation Act, 2016Government Orders

December 8th, 2016 / 5:15 p.m.
See context

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, I want to go back to the CETA comments. I wonder how the member would feel if I were to present him with a half-knit sweater for Christmas and package it up.

We honestly recognize that the Conservatives did do some work on CETA. We have acknowledged that.

We had leaders in Europe who had a very difficult time and it was off the tracks. If it were not for a very aggressive Minister of International Trade, working with the parliamentary secretary and a Prime Minister who was prepared to pick up the discussions and carry it over the goal line, we would not have that agreement. That is the reality.

It was signed off by this government. It does not mean that we cannot share in the glory, because at the end of the day, Canadians and Canada's middle class will benefit from it.