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-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?

[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.

[Kevin Lamoureux, Liberal, Parliamentary 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.

[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.

[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.

[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.

[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?

[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.

[The Assistant Deputy Speaker, Carol Hughes]

Is the House ready for the question?

[Some hon. members]

Question.

[The Assistant Deputy Speaker, Carol Hughes]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[The Assistant Deputy Speaker, Carol Hughes]

(Motion agreed to, bill read the third time and passed)

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, I suspect if you were to canvass the House, you would find unanimous consent to see the clock as 5:30 p.m.

[The Assistant Deputy Speaker, Carol Hughes]

Is that agreed?