Bill S-6 (Historical)

Canada–Madagascar Tax Convention Implementation Act, 2018

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

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.

Canada–Madagascar Tax Convention Implementation Act, 2018

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, I will be splitting my time with the hon. member for Sarnia—Lambton.

I am speaking today to this tax treaty. Now that we are on the subject of taxes, the finance committee is responsible for that subject. Today we had hearings on the government's spending and on other tax treaties. Normally, when government spending is up for testimony before committee, the finance minister shows up to answer questions. Curiously, today that did not happen. I say “curiously”, because his absence screams with suspicion. He sent his parliamentary secretary in his place.

Why would he do that today? It turns out that it was reported in The Globe and Mail today that the finance minister met with SNC-Lavalin exactly two weeks after the director of public prosecutions decided formally not to cut a side deal with that company to avoid trial and prosecution. Apparently, the—

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, as you can see, my colleague wants me to stand up on a point of order. I am not disappointing the member.

There is an expectation that we be somewhat relevant. I know the Conservatives want to change the focus of all debate to one issue, but this has nothing to do with Bill S-6.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

I believe that the hon. member for Winnipeg North was talking about relevance. I will be honest with you. Through this whole debate, there has been nothing relevant to Bill S-6.

The hon. member for Carleton seems to be going in a different direction. However, I will let him bring it back to Madagascar. I am sure it has something to do with Bill S-6.

The hon. member for Carleton.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, this debate is about fiscal evasion with respect to taxes on income, which is a matter of corporate ethics. I was raising the issue of corporate ethics with respect to SNC-Lavalin, which stands accused, with formal charges, of over $100 million in fraud and bribery.

Earlier today at committee, the Liberal chair tried the same trick the member across the way just deployed to silence me from speaking out on this very issue. This is a finance issue, and I am talking about the conduct of the finance minister. That minister refused to testify in the finance committee today precisely because he was afraid to answer why he was talking about justice and law enforcement with SNC-Lavalin two weeks after the independent and non-partisan director of public prosecutions had decided that the company was not entitled to receive a special deal to avoid prosecution and trial. When I raised that question, the chair slammed his gavel. When I raised it again, he shut down the meeting.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I rise again on a point of order. It is about relevance. The member seems to be upset about something that took place in the standing committee. I would suggest that he go back to the standing committee and raise a point of order if he is not happy with what took place there.

Today we are talking about Bill S-6, and I would ask the member to reflect on the content of Bill S-6.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

The hon. member for Winnipeg North does have a point with respect to this. The argument is very much about an activity that took place outside of this chamber. I will remind the hon. member for Carleton that what we are debating today is Bill S-6.

The hon. member for Carleton.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, you are indeed wrong. It happened at the finance committee, which is not outside of this chamber. It is a creature of this chamber.

I will continue, and I will advise our friends—

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, on another point of order, you asked the member to be relevant. You reflected on it being a standing committee. The member then stood in his place, and in essence, challenged your ruling by saying that he was going to continue the way he was speaking.

I would ask the member to understand that if he has an issue with the standing committee, the most appropriate thing for him to do is to go—

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

Order. I will stop this now. It is turning into a debate. Again, the point of relevance does come into play. I will leave it to the hon. member for Carleton to hopefully come back to Bill S-6 and talk about the treaty with Madagascar.

We have a point of order from the hon. member for Timmins—James Bay.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I just want to say, on behalf of the New Democratic caucus, that I have enormous respect for the work you do. I think you have a very difficult time at times, so we want to thank you for the work you are doing, and we certainly support you in most of your decisions.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, there is no doubt that the government would like to silence voices speaking out against it at this time. We have seen that over and over. We know that the Liberals, particularly that member, are prepared to ramble on about any subject under the sun whenever they get the opportunity. The member has never been concerned about relevance except when we talk about things he does not want Canadians to know.

We are on that subject right now. The finance minister and the Prime Minister do not want the former attorney general to speak about what she knew and what they tried to force her to do with respect to SNC-Lavalin. The Liberals shut down a finance committee today to avoid tough questions on that subject. Now this member, who speaks for the government, is trying to shut me down, because he does not want any more debate or discussion on this issue.

If they want relevance, I will tell them about relevance. This treaty is supposed to be about fiscal evasion with respect to taxes on income, but it is about more than that. It is about who the government is working for. We have seen a pattern with the current government of crony corporatism and favouring the powerful and moneyed elite.

Since the Liberals took office, there has been a massive spike in reported lobbying activity. That is because the government has become the leading decision-maker on who gets what money. Businesses increasingly understand that the way they get ahead in this Liberal economy is not by having the best product but by having the best lobbyist.

Lobbyists managed to secure $400 million in handouts for Bombardier, a company that then laid off its workers, shipped the jobs to America and sold the IP to Europe. Europe got the IP. America got the jobs. Canadian taxpayers got the bill. Why did the Liberals do it? If the Canadian taxpayer did not kick in, the Bombardier-Beaudoin family would have lost control of the company. It would have had to issue more shares, which would have diluted its interest and brought it below 50%. Therefore, $400 million Canadian tax dollars from working-class people was used to protect the interests of feudal billionaires who wanted to maintain control of this company.

Why did the Liberals want SNC-Lavalin to get off these charges? It is a Liberal-linked corporation, which gave over $100,000 in illegal money to the Liberal Party and has lobbied the current government and its members over 100 times since.

The richest Canadians are paying $4.6 billion less. Those who inherit wealth and massive fortunes from ancestors, as the Prime Minister did, are able to shelter their money in special vehicles. The finance minister introduces tax changes that go after plumbers, pizza-shop owners and farmers, but interestingly, do not touch his family business, Morneau Shepell.

The Liberals set up an infrastructure bank that guarantees against losses for large construction companies in large public procurement projects so that all the risk is with taxpayers and all the profits are with the private-sector corporations.

That is the crony corporatism that drives the current government. Instead of relying on free enterprise, the Liberals want government control. Instead of meritocracy, they favour aristocracy. Instead of businesses making it by having the best products, they make it by having the best lobbyists. Instead of those same businesses obsessing over customers, those businesses have to obsess over pleasing politicians. That is the Liberal economy they are building. They are building an economy of political insiders, where people get ahead through their connections and where those with money turn that money into power and turn that power back into yet more money.

That is exactly the kind of crony corporatism we must end. When we do, we will replace it with a meritocracy driven by free markets, where we favour the challenger over the incumbent, the underdog over the fat cat, and everyday Canadians ahead of the interests of those on the inside track.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

Before I move to questions and comments, I will note that from the start of this debate, Bill S-6 was supposed to be the topic of discussion. Debate has gone far and wide. Normally, we allow members discretion. I assume they have a different path for their argument and that they will bring it back to Bill S-6. I ask the hon. members to ask questions and give answers about Bill S-6, the item we are debating.

Questions and comments, the hon. member for Winnipeg North.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, what Bill S-6 does, in good part, is take away barriers for investment in trade. The government has taken a very aggressive approach regarding world trade and tax agreements like this to enable Canada to have a stronger, healthier economy. That will give strength to our middle class.

Now to the question for my colleague across the way. The member who spoke before him talked about whether we should stop debating this proposed legislation, since all parties in the chamber are supporting it. She asked the government why we could not just let the bill go through so that we could debate other issues, perhaps those that the member across the way would like to talk about.

Would he not agree with me and his colleague, who spoke just before he did, that we should allow the bill to pass so that we can change topics?

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Speaker, we are members of Parliament and we have the right to speak to legislation before it passes. The government would do well to stop trying to ram legislation through without proper debate. That is exactly how we got into the problem with SNC-Lavalin in the first place.

Earlier today, I was told at finance committee that I could not ask about SNC-Lavalin because the deferred prosecution agreements are not a financial issue and do not belong in discussions at the finance committee. That is funny. Why were they in the budget if they are not a financial issue?

Liberals keep telling us what is relevant and what is not so that we will not look at what they do not want us to see. Our job is to hold them accountable. It is not to heap praise on the Prime Minister, who had nothing but praise heaped upon him his entire life. We are not here to be his cheerleaders. We are here to hold him accountable, and we will not apologize for doing so.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I take to heart your comment that we should be speaking about the bill, which is about Madagascar.

I have never been to Madagascar and I am probably not likely to go there, but I am concerned about the offshore tax havens that are protected by the Liberals. They may be in Madagascar but are more likely to be in the Cayman Islands and warmer climates.

In the KPMG case, in which a fraud scheme was set up so that billionaires would not pay tax, the government allowed KPMG not to be held accountable. Imagine if ordinary Canadian citizens did not pay their taxes. The government would come down on them like a ton of bricks, just as they do in going after single mothers in my riding over child tax benefits. Furthermore, not only did the government not prosecute KPMG: it picked a KPMG representative to be the treasurer of the Liberal Party. I guess Liberals just thought he did business so well.

This leads me to the question regarding SNC-Lavalin. The government wrote a get-out-of-jail card for one company and slipped it into an omnibus bill that we were not given the opportunity to properly debate. Members of Parliament were not aware that this get-out-of-jail card had been written at the behest of SNC lobbyists, but SNC lawyers were already aware that this legislation was ready to go and so they went to the independent public prosecution.

Canada is not Madagascar. We tend to think we are not a banana republic. However, this kind of shoddy backroom deal with friends certainly makes us look less than credible as a G7 country.

I would like to ask my hon. colleague what he thinks about this pattern of Liberal corruption involving lobbyists and insiders.