This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.
This bill has received Royal Assent and is now law.
This is from the published bill.
This enactment implements the Convention between Canada and the Republic of Madagascar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and a related protocol.
The convention is 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 has two main objectives: the avoidance of double taxation and the prevention of fiscal evasion. Once implemented, it will provide relief from taxation rules set out in, or related to, the Income Tax Act. That implementation requires the enactment of this Act.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
Chris Bittle Liberal St. Catharines, ON
Mr. Speaker, I would like to thank the hon. member from Newfoundland and Labrador, and it should be said again: 300,000 children lifted out of poverty. That is an incredible accomplishment.
The government cut the small business tax rate from 10.5% to 10%, effective last January. As of January 2019, though, this rate was further reduced to 9%. For the average small business, this will leave an additional $1,600 per year to reinvest in the business and create better, well-paying jobs.
Gord Johns NDP Courtenay—Alberni, BC
Mr. Speaker, on a point of order, we have heard the member speak for a few minutes now and he has not said anything that is relevant to this bill. I am asking if he could get back to the bill that is at hand here.
The Deputy Speaker Bruce Stanton
I thank the hon. member for Courtenay—Alberni for his intervention and his point of order. He is right that relevance, of course, is one of the limits on speech in the House. The member for Courtenay—Alberni already indicated that we are just a few minutes in. I must say that I was preoccupied here momentarily with a brief conversation with one of the clerks. Therefore, I will endeavour to pay close attention to what the hon. member for St. Catharines has to say, and I am certain that he will bring the speech right back to the subject that is before the House.
The hon. member for St. Catharines.
Chris Bittle Liberal St. Catharines, ON
Mr. Speaker, as I mentioned in the introduction, the thrust of my speech is about tax fairness, as Bill S-6 is about tax fairness, and talking about the other measures the government has taken with respect to tax fairness. I am happy to continue and bring it back again.
Next year, the combined federal-provincial-territorial average tax rate for small businesses will be lowered to 12.2%, by far the lowest in the G7 and the fourth lowest among OECD countries.
However, tax fairness requires action on multiple fronts, not just Bill S-6.
For example, in each of our budgets we have taken steps to strengthen the Canada Revenue Agency's ability to crack down on tax evasion and combat tax avoidance. I know those are issues that have been discussed by the opposition members in questions they have brought up.
The government has also taken action to close loopholes that result in unfair tax advantages for some at the expense of others. Actions like these help ensure the government's ongoing ability to support the programs and services on which Canadians rely.
Today's legislation, Bill S-6, targets strategies used by businesses and wealthy individuals to exploit gaps and mismatches in tax rules to inappropriately reduce or avoid tax. Bill S-6 greatly enhances our ability to counter tax avoidance strategies that would otherwise abuse Canada's tax treaties and reduce or avoid Canadian tax.
While we have made significant investments in the CRA, we know that fighting tax avoidance is not something that we can do alone. It is not easy work. Bill S-6 implements a multilateral convention that contains a number of treaty-related measures to combat base erosion and profit shifting, or BEPS. BEPS refers to tax avoidance strategies in which businesses and wealthy individuals can use gaps and mismatches in tax rules to avoid tax or shift profits to low-tax or no-tax locations. In other words, these strategies enable businesses and wealthy individuals to avoid paying their full or fair share of taxes.
To implement all these measures in a timely and effective manner, a new approach was required. This new approach is the multilateral convention contained in the bill, ultimately known as the multilateral instrument, or MLI. The MLI is a product of a global initiative, working with more than 100 countries and jurisdictions, including Canada. The purpose of the MLI is to allow participating jurisdictions to adopt measures to combat BEPS without having to individually renegotiate their existing tax treaties. The MLI would also improve the functioning of international tax systems by including measures designed to better facilitate the timely and effective resolution of disputes under tax treaties.
We have listened to Canadians. They want the government to take action to address tax avoidance, and we are committed to that. We are making significant progress.
The bill builds on the government's ongoing work to ensure that we have a tax system that is fair for everyone. Starting with budget 2016, the government has been giving additional funds to the Canada Revenue Agency, so that it can more effectively crack down on tax evasion and combat aggressive tax avoidance. These additional investments continued in 2017, and again in 2018, and they are already paying dividends.
At the close of 2017-18, CRA had 50 ongoing criminal investigations related to the transfer of money that rightfully belongs in Canadian coffers to low- or no-tax jurisdictions. The government is also targeting those who promote tax avoidance schemes and has imposed more than $44 million in fines on those third parties.
We are joining this international collaboration in making these investments in the CRA because Canadians want their money back and want the loopholes through which these tax dollars flow out of Canada closed. If our economy does not work for everyone, if people do not pay their fair share, Canadians grow concerned and they want action.
We invested in the CRA, after years of cuts under the Harper government. Of course, it limited the CRA's ability to prosecute tax offences. We need to fund those who are on the ground. They are essentially police officers, and we saw today in Ontario, during Ontario Police Week, the provincial government cutting $46 million to front-line policing and the OPP.
We are doing the opposite. When we see criminal or illegal activity, in this case tax avoidance, we need to step up and take action. That is why we invested in the CRA. That is why we are putting more officials on the ground. This is not easy work.
Through my legal practice, I know that dealing with cases of fraud and white-collar crime is a very difficult burden for investigative agencies like the CRA. It is not a matter of seeing something on camera or hearing from an eyewitness. It takes a great deal of work to bring forward cases for enforcement and prosecution.
In the absence of investment, there will be a decline, and it will be easier for Canadians to avoid taxation and move their money overseas without fear of getting caught. This needs to be emphasized. The tax system needs to be seen to be fair. Justice should not only be done; it should be seen to be done.
This has been an important part of our investments in the CRA, ensuring that we have a tax system working for every man, woman and child in this country. That is money that needs to work for Canadians, including through some of the tax programs I talked about. It is about making our entire tax system fairer.
We talked about the CCB making the system fairer. I had a wonderful conversation with a constituent who is no longer receiving the CCB. She was able to use the CCB to start up her small business. There is more money in her pockets, tax-free. The opposition voted against this, but she received this benefit and was able to start up her business. She is now making enough money that she no longer receives the CCB. She is employing Canadians. She was able to take the step to help herself and better our community, and that is significant.
Coming back to the middle-class tax cut, I note that one of the first things we did as a government was lower taxes on the middle class and raise them on the wealthiest 1%. Again, it is about a tax system that works for everyone. We were shocked that the opposition voted against this, but it is a measure that Canadians wanted. They wanted to ensure that the wealthiest in our society paid a little more so those who make a little less could get a bit of a break, so that is what we did.
The previous speaker, the hon. member from eastern Ontario, said that families are not better off under our government. Nothing could be further from the truth. The average family is $2,000 better off—
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
Mr. Speaker, on a point of order, I believe you made a ruling about relevance a little earlier. I know we always allow great discretion, but the member is not really debating the topic at hand. A laundry list of what he considers to be the government's domestic accomplishments has nothing to do with this debate. I know members are given a lot of latitude, but I wonder if that latitude has been stretched.
The Deputy Speaker Bruce Stanton
I thank the hon. member for Kamloops—Thompson—Cariboo for her intervention and her reminder.
The hon. member indicated that he was arranging his remarks around a comparison, and it is through that comparison that he was able to venture into the subject area he was discussing.
We are almost out of time. I will give the hon. member 30 seconds to finish his remarks, and then we will move to questions and comments.
Chris Bittle Liberal St. Catharines, ON
Mr. Speaker, it is interesting that a Conservative member rose on a point of order for relevance, because I was directly addressing the previous Conservative speaker's comments. Maybe what he was talking about was completely out of order and we are both in the wrong.
To go back to my earlier remarks, the average family is $2,000 better off. The Conservatives will cite the Fraser Institute and will ignore the Canada child benefit, and that is their right; they can go on misleading Canadians. However, average Canadians are seeing more money in their pockets, for a tax system that is fairer, a tax system that is better and a tax system that works for everyone.
Marilyn Gladu Conservative Sarnia—Lambton, ON
Mr. Speaker, I thank the member opposite for not talking about Madagascar, which is the point of this whole debate. It is very ironic that the government would bring a bill forward to talk about our relationship with Madagascar.
Where does that fit in the priority compared to the relationship the government has ruined with China, Japan, India, Venezuela, Saudi Arabia and the U.S.? Could the member comment on that?
Chris Bittle Liberal St. Catharines, ON
Mr. Speaker, I did address the bill on multiple occasions. Perhaps the member was chatting with her neighbour, which is fine.
The government is committed to a fair tax system. This is part of that. Working within our international obligations, this is an important step forward. We hope at the end of the day the opposition agrees, looks to move forward on this tax treaty, supports it and sees it become law.
Gord Johns NDP Courtenay—Alberni, BC
Mr. Speaker, members heard earlier my earlier concerns that the member's speech was basically about the Liberal platform moving forward and that it was not germane to the bill before us, which is a bill about tax fairness. We agree that Madagascar has a similar tax system to Canada.
However, the government could have taken this opportunity to put forward legislative and regulatory changes that could have closed tax loopholes, which are costing Canadians billions and billions of dollars. Instead, the government comes forward with a bill like this, at the end of a session.
We have learned from the solicitor general in British Columbia that over $5 billion had been washed in B.C., which is now considering holding a public inquiry into this. If the Province of British Columbia decides to move forward with a public inquiry into tax evasion and the amount of money that has been used as shelters for housing and various different things, will the Government of Canada follow suit? Billions of dollars are at stake.
Chris Bittle Liberal St. Catharines, ON
Mr. Speaker, I appreciate the irony of the hon. member questioning the relevancy of my speech by asking a question for something not directly related to this topic either.
We are always happy to discuss issues with our provincial and territorial counterparts. Money laundering is already illegal and is a concern. It has been going on for a very long time. If there are opportunities for discussions and working together on that, I think Canadians would want the federal government and the province to work together on it.
Looking at differences between governments for enforcement, such as the RCMP and the CRA, which would be called upon to enforce those measures, the previous government made cuts to those agencies. We have invested in the RCMP and the CRA so we can better address the problems, as well as make the tax system seem fair and work for everyone.
Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders
Winnipeg North Manitoba
Liberal
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, one of the things we have seen over the three and a half years is a government that has looked outside of Canada's boundaries. In dealing with tax treaties and trade agreements, we are allowing and fostering more trade and opportunities for Canada's middle class and those aspiring to be a part of it. In good part, the trade file is one of the reasons we have been able to achieve hitting one million new jobs in Canada in the last three and a half years. I wonder if my colleague can provide his thoughts on just how important that fact is?
Chris Bittle Liberal St. Catharines, ON
Mr. Speaker, I could not agree more with the hon. parliamentary secretary and his comments. A million new jobs is something to brag about. It is significant. Canadians have worked very hard and it is clear our policies have worked to help fuel that innovation and entrepreneurship. Part of that is our trade strategy, whether it is with Europe, Asia, or standing up to the United States or by standing firm on our commitments and with our industries.
Canada has unprecedented access to global markets. That speaks well to the economy. Bill S-6 is a small part of that and it will move us forward. We are always looking forward to creating new jobs and helping Canadians in their entrepreneurship and in investing.
The House resumed consideration of the motion that Bill S-6, An Act to implement the Convention between Canada and the Republic of Madagascar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, be read the third time and passed.
Mark Eyking Liberal Sydney—Victoria, NS
Mr. Speaker, fellow MPs and parliamentary staff, I rise today to say goodbye. I have come to know many of you over the last 19 years here. We have spent many long days and late nights right here working together for Canadians right across our wonderful country.
Over 338 of us have the honour to sit in this chamber representing and working for our constituents back at home. Today I would like to recognize the ones who helped me get to this special place.
First, I would like to recognize my parents, John and Jean Eyking. I am so fortunate that they emigrated from their homeland, the Netherlands, not only to come to Canada but to start a new life on the beautiful island of Cape Breton. They raised 10 of us while being successful in business. They contributed to major projects in Cape Breton, and helped many in need. They will be recognized next week in the Cape Breton Business and Philanthropy Hall of Fame.
My parents cherished democracy and told us that voting is very important, but it was close friends of our family, George and Sharon Unsworth, who encouraged me to enter politics. I will never forget the day George came looking for me in the broccoli field and asked me to run.
I feel so fortunate that I became part of the Liberal team. Prime Ministers Chrétien, Martin and our Prime Minister today not only helped me achieve so much for Cape Breton Island but also gave me the opportunity to work with all Canadians, whether here in Canada or internationally. I look forward to more great work done by our Prime Minister after October.
I would like to thank so many back in Cape Breton who helped me get here. I cannot name them all, because we would end up sitting here until midnight, but I recognize the teams that worked on the ground to get me elected six times.
I thank Meryl Buchanan and the Victoria County team; Bob Jardine and the northsiders; Vince MacLean and Gerard MacNamara, from the Sydney team; Chief Leroy, from the Eskasoni team; and the dynamic duo, Dave Wilton and Mary Woodman and their New Waterford team. Of course, we can never forget our sign guys, Stan and Charlie. I thank the team for not only getting me re-elected but for putting on fundraisers every year to pay the bills.
I would especially like to thank everyone from my riding of Sydney—Victoria who had faith in me and checked off my name at the ballot box. Through my years of representing them, I had the opportunity to meet them in their kitchens, community centres, places of worship, and of course, workplaces. I was fortunate to represent such a diverse group of people with so much compassion and resilience.
When I was elected, my mom said, “Work hard for Cape Breton, and behave while you're up there.” One might say that is a bit challenging when I was sharing Cape Breton and living with Rodger. I know I am not supposed to call him Rodger. I am supposed to call him the member for Cape Breton—Canso, but we are too close for that. We not only pulled off a lot for people back home, we had a lot of fun doing it. I stand here today to recognize him, along with all my fellow MPs, who through the years supported me every step of the way.
All of us in this chamber get a lot of credit when we succeed in doing important work for our ridings, but we all know that our staff is one of the keys to our success. They must respond at all times not only to us but to our constituents when challenges arise.
My staff, John Patrick, Elizabeth, Ann, Meghan, Ryan and Sean not only take care of things back home but keep things running smoothly up here on the Hill.
I would also like to thank my previous staff who helped me: Darlene, John Coady, Diane and Kirby.
Every day our office faces new challenges. Some days it is helping a constituent. Other days it is assisting communities with projects or dealing with emergencies. We had the tar ponds and we had the major floods during Thanksgiving.
We have a workload at home and also in Ottawa, whether it is the work in this chamber or at committees. In our caucus it is crucial for bringing this country forward, and it all comes from our staff.
There are so many on the Hill who also deserve recognition. Whether they work in departments or help me get to the Hill by cab or get me on the airplane, they all help to get the job done, and I thank them all very much.
Over my 19 years, one of my biggest focuses has been the extension of the EI sickness benefits from 15 weeks to 50 weeks for those who need it the most. I would like to thank my staff for the important research and all the organizations that supported me in this pursuit. I would like to thank all the members in this chamber for unanimously passing my motion last week, Motion No. 201. We know the extension of EI sickness benefits is not only the right thing to do, but the smart thing to do.
Some people ask how I got through so many challenging situations over the last 19 years. It is because my team helps me get the job done. As I said, we do not get through politics alone. There are many sacrifices in politics, and many proud moments. I encourage all Canadians to get involved, whether by putting their name on the ballot or by encouraging and supporting someone who wants to put their name forward. People who do that are so important. We live in the most beautiful country in the world, whether it is our landscape or our culture and diversity, but without a solid democratic foundation, it is all for naught.
I am now going to thank the person who made my life complete.
Forty years ago, my wife Pam and I met. It started after a dance. She came back to the farm with me that evening because we had just received 10,000 new baby chickens. She helped me feed them. Her being from Dartmouth and my being from Cape Breton made for a lot of travel back and forth to see each other, and we are still doing that today.
Pam and I started a vegetable farm, and we were very successful. We received many awards. We had wonderful, hard-working employees who helped us achieve success, people like Joe King, Eldridge, Sissy and of course our special Whitty Mom.
I was not the only one to be successful in getting elected. Pam was elected the MLA for Victoria Lakes. Again, we worked hard together to accomplish many projects in our region, especially the one we are most proud of, doing a makeover of the world-famous Cabot Trail.
We were blessed with four wonderful children, Mieka, Josh, Bethany and Jonah, and along with their spouses Christian, Natalie, and Wade, we now have six beautiful grandchildren and one on the way. This is one of the main reasons that I am leaving this wonderful place. I am so happy that two of my grandchildren have joined me on the Hill today, Lucienne and Davie.
I would like to say goodbye with my personal definition of how to be fulfilled in one's life: May you live in the place that you love; may you do the things that you enjoy; and most importantly, may you be surrounded by those who share those goals with you.
I was truly blessed.