Evidence of meeting #46 for Finance in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was fintrac.
A recording is available from Parliament.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Is it accomplishing what I think it's supposed to accomplish?
October 31st, 2006 / 10:30 a.m.
Senior Project Leader, Financial Crimes - Domestic, Financial Sector Division, Financial Sector Policy Branch, Department of Finance
There are two aspects in the bill in respect of improving information sharing with CRA. There is the charity aspect. The bill will allow FINTRAC to share information with the Canada Revenue Agency in respect of charities.
The bill is also improving the disclosure provision in respect of potential tax evasion by adding elements to share also potential fraudulent claims of tax rebate and tax credits.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I'm sorry to interrupt you, but our time is limited. It's not to initiate or to look for tax evaders while there is an investigation going on, then, or to initiate one?
Senior Project Leader, Financial Crimes - Domestic, Financial Sector Division, Financial Sector Policy Branch, Department of Finance
FINTRAC will disclose information if they suspect money laundering or terrorist financing and tax evasion. FINTRAC may not know whether there is tax evasion.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
That's where the problem is. So this bill doesn't address that particular aspect.
Senior Project Leader, Financial Crimes - Domestic, Financial Sector Division, Financial Sector Policy Branch, Department of Finance
Well, CRA could disclose some information to FINTRAC voluntarily if they are looking into potential tax evasion cases. With the disclosure provision, the information would flow both ways, and that issue would be addressed.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay, thank you.
The Senate report had 16 recommendations, and I know we've discussed some of them. How many of those recommendations are incorporated in the legislation? I think when replying to Mr. McCallum's questions, you said recommendations 13 and 14 were not taken, but are there any other ones? Has an analysis been made?
Director, Financial Sector, Financial Sector Policy Branch, Department of Finance
In terms of what's in the legislation, what I want to be clear on is the combination of the legislation and the regulations that will come pursuant to this legislation. The vast majority of the recommendations will then have been taken into account.
As I mentioned, there are a couple that are not legislative.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Right. Was there a reply made to this report?
Director, Financial Sector, Financial Sector Policy Branch, Department of Finance
Not yet.
Liberal
Director, Financial Sector, Financial Sector Policy Branch, Department of Finance
It is my understanding that the committee hasn't asked for a formal response yet. I think our reply, in a way, is going to be when this bill is before the Senate.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Can you provide us with the information as to which recommendations you think are in the legislation—just a one-pager to say yes or no?
Director, Financial Sector, Financial Sector Policy Branch, Department of Finance
What we can do is give you essentially a full account of where we are on each recommendation.
Liberal
Director, Financial Sector, Financial Sector Policy Branch, Department of Finance
Sure, absolutely.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
My other question is this. In June 2005 there was a consultation paper regarding this anti-money laundering and anti-terrorist financing legislation. Is there any summary of what those consultations came up with?
Director, Financial Sector, Financial Sector Policy Branch, Department of Finance
All of the submissions we've received, where we got the okay, were posted on the Department of Finance website, and I believe they're still available on that website.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay, so everything is available.
And how many of the submissions would be considered to have been enacted in the legislation?
Director, Financial Sector, Financial Sector Policy Branch, Department of Finance
Most of the submissions deal with details of implementation—how you actually tailor these kinds of recommendations to the existing business practices of the reporting entities. They're really on the technicalities of implementation more than on the legislation.
But in terms of comparing the proposals in the white paper with what's in the legislation, the vast majority of what was in the white paper is now either in legislation or the subsequent regulations.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
And was the biggest problem the privacy issue?
Conservative
The Chair Conservative Brian Pallister
Thank you very much, sir. We are concluded.
I thank the witnesses very much for their participation.
Madam Ablonczy, would you like to make some closing comments?
Conservative
Diane Ablonczy Conservative Calgary Nose Hill, AB
No, except to thank my colleagues for their courtesy to me in my first appearance. I'm sure you all can put yourselves in my position. I have to tell you, in all honesty, I'd rather be over there than here.
Conservative
The Chair Conservative Brian Pallister
Thank you, Madam Ablonczy. Thank you, all. Thanks to committee members for their attention, despite their chocolate levels here this morning.
We will excuse the panel now, and the cameras will be off momentarily so we can continue our civil discussions this morning.
I think I can deal, actually, with Monsieur St-Cyr's issue in advance. It may save us time, and we'll then move to Madam Wasylycia-Leis's motion. Also, I should notify the committee that we've received notice from Mr. Paquette of his desire to present a motion on Thursday.
I want to quickly give you an overview of the work we have before us. This Thursday we will continue dealing with Bill C-25. I will encourage all committee members, if they have amendments to this bill, to bring them forward in advance of the discussions. It would facilitate discussion of the bill. I would encourage you to give those to the clerk by 5 p.m. tomorrow, knowing, of course, that you can bring amendments during the discussion if you so desire. It would facilitate our discussion at that time.
Also, we have C-28, the budget implementation bill, before us, which we must deal with by.... When? Is there a deadline on that? It should be as soon as possible.
We also have Bill C-294. Supplementary estimates also have to be dealt with by December 5. We have the fall fiscal forecast. And the minister will be appearing, we think, but not until the week after, we hope, the Remembrance Day recess.
We also have, of course, the priorities that I've asked you to identify and forward to us, because we want to get those over to Finance so they can come to speak to those and provide us with further information. That process will begin next Tuesday. So those priorities, I'd remind you.... When did we say we wanted those in by? They should be in by tomorrow at noon. Please do so, because we do want to make sure that Finance officials have a bit of lead time to prepare fully for your questions.
As well, we have private members' bills and the tabling of reports on the pre-budget consultations. We need to prepare that as a result of our weeks of deliberations. That has to be done by December 4. As well, Mr. McCallum has a notice of motion on the record in regard to GST rebates.
We have 10 meetings to do all of that. That being said, Mr. St-Cyr has raised with the chair his concern about--