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 bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Status

This bill has received Royal Assent and is now law.

Summary

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.

Elsewhere

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.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other S-6s:

S-6 (2022) An Act respecting regulatory modernization
S-6 (2014) Law Yukon and Nunavut Regulatory Improvement Act
S-6 (2011) First Nations Elections Act
S-6 (2010) Law An Act to amend the Criminal Code and another Act
S-6 (2009) An Act to amend the Canada Elections Act (accountability with respect to political loans)
S-6 (2007) Law An Act to amend the First Nations Land Management Act

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 3:40 p.m.

The Speaker Geoff Regan

I hope the House will indulge me while I reminisce for a second or two about the times we have had together, Mark. We got to be friends after we came in 2000. I was coming back after my involuntary sabbatical, but we came together.

I had the great pleasure of working with you over that time on many issues and many things. It has been wonderful to have you around. We had to deal with the hon. member for Cape Breton—Canso; that could be a challenge of course. The two of you were sharing an apartment for a long time, and everyone referred to it as the Cape Breton embassy because there were so many visitors from Cape Breton there. Many of us were upset that you decided to divorce, to split up and move into separate places. However, you reconciled later so everyone was pleased. On all sides of the House, people were pleased to see that.

We appreciate your sense of humour, all of us do, and your hard work. I know you care very deeply about the people of Sydney—Victoria, Cape Breton and all of Canada. I know you care deeply about your family. I want to wish you and Pam and your magnificent family the very best in the future.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 3:40 p.m.

Liberal

Mark Eyking Liberal Sydney—Victoria, NS

Mr. Speaker, there is so much love in this room that I think I am going to stay.

I do not want to challenge the Speaker; I never did in my 19 years. However, I am challenging him on this one. We are not divorced. We are just separated because of the kids, and we are all right.

I would like to make a few comments, and I guess I will start with the member for Saanich—Gulf Islands. I have to confess that not everybody in our family votes Liberal. There is one in our family who has a crush on her, but he has to let that go because she is married now. We have a Greenie in our midst.

I wish good luck to the member from Niagara, with Hayes MacNeil and Vince MacLean, his cousins. They are pretty entrenched back there, so good luck getting one of the MacNeils and MacLeans to run, but I appreciate it. There is so much Cape Breton connection here.

The tar ponds were also brought up. That was a really big challenge, but it was one of those things that happen where nobody in this House could disagree it had to be done. It started with a community group, with Dan Fraser and the community. They started it. At that time, there was a good Conservative premier, John Hamm, who stepped right up to the plate with the member for Cape Breton—Canso and me, and we got it done. If you, Mr. Speaker, and others in this chamber ever come to Sydney, go downtown and see this beautiful park. There is a new business there now with 300 or 400 employees. It is just a wonderful thing. It is a project that is not about me; it is about Canadians all doing the right thing and getting it done.

To the member for Timmins—James Bay, the beaver story comes up and for the record I have to straighten this out about what meeting the member for Cape Breton—Canso and I were coming from. It was a meeting at D'Arcy McGee's, and it was one of those meetings with the member for Cape Breton—Canso where I would say, “It's time to go home now.” It was April 1. God love the poor lady who was on 911 on the other end, but it was April 1. We saw the beaver and the member for Cape Breton—Canso called 911 right off the bat. He calls 911 and says we are two members of Parliament, on April Fool's Day, and we are on Sparks Street and we have a beaver. She told him he was tying up the line and all that stuff. I asked the member for Cape Breton—Canso how that was working out; well, it was not going very well. Anyway, we did get the beaver. The member for Cape Breton—Canso has some qualities. I do not think he was ever on a farm before, but he has some qualities. Anyway, we got the beaver across the road and he was not paying attention very much but we got the beaver in the river. However, he was following us back to the Cape Breton embassy and we had to go back and chase him down again, so we got the job done.

The member for Prince Albert and I came up here, and we are farmers and we worked hard for our people. There is never a day that we do not think about the fine people in this country and around the world who produce the food for us to put on the table. We always agreed on that and worked together on that. I thank him very much for being on agriculture and on trade with me. Maybe we can go down there. He knows Spanish better than I do, so maybe he can do the translation down there and we can do more projects.

Mr. Speaker, I will close. This has been such a wonderful experience for me, being in this House, as the son of an immigrant and being a business person. It is not easy for someone in business coming up here. Having so much support back home and here, I never had to worry about what was happening behind me, so I could always look ahead. I thank my colleagues very much.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 3:45 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, after so many tributes to one of our colleagues, it is hard to get back to the debate on a bill like Bill S-6.

I want to take this opportunity to congratulate the member for Sydney—Victoria on all he has done. The kind words coming from all sides of the House prove that he was obviously very well liked and wonderful to work with all these years. I too would like to wish him all the best.

We are here today to debate Bill S-6. Our job is to talk about bills and discuss the various motions brought before the House. Bill S-6 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 based on the Organisation for Economic Co-operation and Development's model tax convention on income and on capital. A bill like this is introduced for two main reasons. The first is to avoid double taxation, and the second is to prevent fiscal evasion. Once this bill is implemented, it will provide relief from taxation rules set out in the Income Tax Act. It cannot be implemented until the bill is passed. We on this side of the House plan to support the bill.

Since we are talking about international relations, I want to talk about a speech that the leader of the official opposition gave to the Montreal Council on Foreign Relations, or MCFR. He gave his excellent speech to a full house on May 7 in Montreal.

The leader of the official opposition spoke about this country's foreign affairs, which is why I am making a link to the bill we are debating today. Maintaining healthy relations with other countries based on respect and rules is what enables us to continue to prosper and find our place in an ever-changing, fast-moving world.

Before I talk about the opposition leader's vision for foreign affairs, I want to talk about the government's track record in that regard. Shortly after the 2015 election, the Prime Minister said that Canada was back. He took credit for the good reputation that Canada had built over the years under all of the previous governments. Unfortunately, in 2019, it seems that Canada has gone nowhere. Here is what the opposition leader had to say:

The profound arrogance of [the Prime Minister]'s words foreshadowed how the new Prime Minister would conduct Canada’s foreign affairs: with style over substance.

It is public knowledge that the government has made many serious mistakes, and they are almost always attributable to the Prime Minister's poor judgment. Let us not forget the trans-Pacific partnership. He was a complete no-show for a very important meeting. Observers said at the time that the Japanese were seething about what they perceived as a last-minute betrayal by the Prime Minister of Canada.

We all know the details of his trip to India. Certain images come to mind every time someone mentions it. As the Leader of the Opposition said before the MCFR, what is perhaps less known is how seriously that trip hurt Canadians. Bilateral trade with India totals about $9 billion annually. The Prime Minister's trip to India seriously set us back in terms of helping Canadians benefit from increased trade.

We need to look at what is behind the image and the photo ops, at the impact of these actions. As former Liberal minister Ujjal Dosanjh stated, it is disappointing that the Canada-India relationship could have gone to the next level, but we have bungled it.

More recently, we have witnessed the government's defeatist attitude toward China. A wait-and-see approach has now become the norm. China has taken totally unjustified trade actions directed against Canadian farmers, canola farmers, the pork industry, and livestock genetics companies. Unfortunately, the crisis only seems to grow worse every day.

The Minister of Agriculture and Agri-Food has just returned from a G20 ministerial meeting in Japan, where she had an opportunity to talk to her Chinese counterpart and clearly state Canada’s position on the canola crisis, which is preventing Canada from exporting canola seed to China. However, this meeting on the importance of market access rules-based trade for Canadian agri-food products and opportunities was inconclusive.

According to the news release issued by the minister, she had an introductory conversation with the Chinese minister of agriculture on the margins of the G20 meeting and expressed Canada’s deep concern with the suspension of Canadian exports. The Minister of Agriculture has been asking China to allow her send a technical delegation to verify the Chinese government's allegations about the quality of Canadian canola for a month now, but she is satisfied with an introductory conversation with the Chinese minister of agriculture.

Unfortunately, the department’s news release makes no mention of the Chinese minister’s response. We do not know what he said, and unfortunately, we do not expect a technical delegation to be sent to China, since the minister surely did not want to displease her Chinese counterpart, while China is causing billions of dollars in damage to the Canadian economy.

That is not all. Today, Grain Growers of Canada called on the federal government to provide meaningful support to the Canadian agriculture industry. They want it to develop a strategy to address an increasingly unpredictable trade environment that is affecting the incomes of grain farmers. The strategy should recognize that China’s blocking of Canadian canola is politically motivated, which was acknowledged last week by the Prime Minister. However, government politicians are hesitant. The ministers refuse to stand up to China, and we are seeing the consequences. We are caught in the middle of the trade war between the United States and China. That has serious repercussions for all grain farmers in Canada.

The GGC press release also reveals that, in addition to the suspension of canola imports from Canada, soybean prices are dropping and imports to China have slowed to a trickle, reaching levels not seen in a decade. Industry and government officials have confirmed that Chinese importers are reluctant to sign contracts for other Canadian agricultural products given the uncertainty in the market.

Grain Growers of Canada chair Jeff Nielsen says the time has come for the Canadian government to aggressively defend the interests of Canada's agricultural sector in China and around the world. GGC vice chair Markus Haerle of St. Isidore, Ontario, says that the issues we are seeing with trade into China can no longer be said to be commodity-specific. As a soybean farmer, he has seen his prices plummet and markets close due to the flooding of the market by U.S. product.

The press release concludes by saying that, in addition to Chinese disruption, the loss of the Indian pulse market and the Italian durum market has added to the long list of risks that farmers are expected to manage. That is what we have been saying for months. For at least two months now, we have been telling the House that the Government of Canada has to stand up to China because it did not stand up to Italy, it did not stand up to India when that country imposed tariffs, and it did not stand up to Vietnam. The Liberal government's inaction and wait-and-see approach are causing billions of dollars' worth of damage to the Canadian economy.

When we are talking about billions of dollars in damage to the Canadian economy, we have to spare a thought for every farmer in every province of Canada. Each of them has suffered losses on the order of $10,000, $20,000, $50,000 or $100,000 since the beginning of the year because they cannot sell their product.

We asked for three things. First, we asked for changes to the advance payments program. The Leader of the Opposition had to pressure the government into tabling a plan to help canola farmers. Second, we asked for a complaint to be filed with the World Trade Organization. There has been radio silence on that from the Liberal government. Lastly, we asked the government to appoint an ambassador to China. It seems obvious to me that if we want to resolve a crisis—

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 3:55 p.m.

The Assistant Deputy Speaker Carol Hughes

Order. The hon. member for New Westminster—Burnaby on a point of order.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 3:55 p.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

Madam Speaker, there are no government members in the House. We do not seem to have quorum.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 3:55 p.m.

The Assistant Deputy Speaker Carol Hughes

We do not have a quorum. The bells will ring to call in the members.

And the bells having rung:

We now have a quorum. Resuming debate. The hon. member for Mégantic—L'Érable.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, I am pleased to have the opportunity to address my colleagues.

I would like to remind the House of how the Liberals have managed international trade relations since the Prime Minister's trip to India. There has been the wheat crisis with Italy, the pulse crisis with India and, more recently, the canola crisis with China. The government chose not to take any action.

Canadian citizens and farmers are shouldering the burden of the government's failure to act. Unfortunately, they will have to bear that burden for a long time, because the government shows no interest or willingness to settle these disputes. The government refuses to be assertive and stand up for Canadians in international trade relations.

I will close by citing the Canola Council of Canada. This week, I received a document in which it calls for some very simple measures. The Canola Council of Canada is asking the government to take all possible measures to engage the Chinese government and come to a long-term agreement to restore canola seed exports.

They do not want introductory or preliminary meetings, they want a meeting where Canada clearly states its position.

Stable relations are vital if we want to fight tax evasion and maintain good relations with our colleagues in all countries. Unfortunately, it seems the government has no intention of moving in that direction. It is time for the government to take action on behalf of Canadian canola farmers.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4 p.m.

NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Madam Speaker, I would like to come back to the treaty with Madagascar, since that is the subject of today’s debate.

After the committee study, does my colleague think that the bill is a one-way deal?

Our economic relations with Madagascar are based primarily on Canadian mining companies operating there. However, there are very few companies from Madagascar operating in Canada. There is some trade, but this treaty is mainly a one-way affair. The Canadian companies operating in Madagascar will be the ones to benefit from it.

Is he concerned about the fact that the treaty is a one-way deal that benefits Madagascar's economy, not Canada's economy?

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, I would like to thank my colleague for his excellent question.

That is why we must establish sound trade relations with all countries, including Madagascar. That is why we are encouraging the people of Madagascar to invest more in Canada.

These types of treaties will make it possible to establish clear and specific rules so that bilateral investment and tax relations are clearer, which will also promote trade between our two countries. That is what we must remember.

As we have seen, when a government is unable to maintain healthy relations with other countries in certain areas, it affects all trade relations with those countries. We have also seen that it is practically impossible to maintain trade relations with China right now, since China does not play by the rules. That is why it is important to be firm in our relations. Other countries need to negotiate and respect trade rules. That is what we should do with China, but the government does not want to take a stand.

I hope that this bill will have an impact and that it will help improve trade relations with Madagascar. I hope that this treaty will not be a one-way deal.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4:05 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, tax treaties and trade agreements are important things on the international scene and the federal government needs to be proactive on them. By doing that, we enhance Canada's economy, support our middle class and in fact all Canadians in all regions of the country.

I want to go specifically to the canola issue. Canola is an important industry for our prairie provinces. It is an important industry for all Canadians. The best thing the Canadian government can do is not only lobby China, but bring the science to the table. The best canola in the world is produced in western Canada, and my home province of Manitoba is an excellent example of that.

What we need to do, beyond a shadow of a doubt, is what we have done time and again, which is demonstrate very clearly to the Chinese government that the science is there, that our canola is a world-class product and to say otherwise is just not true.

Would the member acknowledge that this is not the first time we have had issues related to China? Issues related to trade with China even occurred during Stephen Harper's time.

We have to allow the professional civil servants, the scientists, to be at the forefront, and that does not happen overnight, with the snap of a finger. It takes time. We have the science to support our claims. This is the way we can support our farmers, while also ensuring them that we have their backs.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4:05 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, no one is questioning the quality of Canadian canola. No one is questioning Canadian farmers’ willingness to ship the best possible canola to China. The problem is that the Minister of Agriculture asked China to receive a technical delegation a month ago, and China has not responded.

We are convinced that the only people who still think that there might be a technical issue are a few Liberal members.

There is nothing wrong with our canola, yet they refuse to take a political stand. They refuse to file a complaint with the World Trade Organization to show that we are not going to take this lying down. They refuse to appoint an ambassador, which would open up a dialogue and resolve the crisis. There was a time when we had an ambassador in China who helped us get through crises.

They cannot even appoint someone to resolve the crisis. That is the problem. That is what canola farmers are asking for. That is what the organizations are asking for. They are asking the government to do more, to take a stand and to take action on both fronts, not only on the technical and scientific front, but also on the political front, so that we can cover the entire spectrum of relations with China and resolve this situation. While we are waiting, Canadian farmers are paying the price, a high price, for the Liberals’ wait-and-see approach.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4:05 p.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

Madam Speaker, I wanted to tell my colleague that we agree on the issue of Madagascar, but the Liberal government also made arrangements with the Cook Islands, Antigua and Barbuda, and Grenada. These are three well-known tax havens with a near-zero tax rate.

Does my colleague feel comfortable about the Liberals signing all these treaties with tax havens?

What does he think about all the treaties that the former Harper government also signed with tax havens? Each year, they cost us tens of billions of dollars that should go to improving the quality of life and well-being of all Canadians, but that money falls through the cracks of our extremely unfair tax system.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4:05 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, I think that, first and foremost, if we want healthy international relations, we need treaties. We need treaties to hunt down tax evaders. If there are no treaties, we cannot hunt down tax evaders, because we will not have the means to retrieve the money from where it is hidden. That is why it is important to have treaties, so we can take further steps.

Once the treaties are signed, if there are improvements to be made, we will make them. However, we cannot recover money from places where tax evaders go unless we have a treaty that allows us to do so. That is the basis for international relations. We need a treaty first, so we can recover money from people who flout the standards we set together.

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4:10 p.m.

Liberal

Francis Drouin Liberal Glengarry—Prescott—Russell, ON

Madam Speaker, I would like to thank my colleague for his speech. Obviously, treaties with Madagascar and its people are important for our economy.

In his speech, my colleague mentioned the canola crisis. We worked together on this issue, but we may not have had the same vision as to the best way of resolving the situation. However, let us look at what the Conservatives are proposing as an alternative. They supported market instability in foreign countries. We know that the leader of the official opposition is pro-Brexit, a process that caused considerable instability in England.

We also know that the leader of the official opposition does not want to enter into a free trade agreement with China. What a great message to send to China about trade relations. He is also opposed to the presence of Huawei in Canada, although he is unfamiliar with the details of the study.

What message does a national strategy like that send to the Chinese when we want to negotiate with them?

Canada–Madagascar Tax Convention Implementation Act, 2018Government Orders

May 14th, 2019 / 4:10 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, at least we have a strategy and a position. The Liberals have no position.

Let's talk about the Liberal international relations strategy. The infamous trip to India is the perfect example of how to destroy international relations and Canada's image abroad. It is the perfect way to lose all credibility in seeking to establish trade relationships with other countries.

Ever since that trip, nobody takes us seriously. China, Vietnam and Italy are walking all over us. Everyone thinks they can walk all over us because, as far as the Liberals are concerned, international relations are all about image and not about substance and taking positions. While the Liberals bide their time so as not to offend, Canadian canola producers have to pay the price.