Evidence of meeting #129 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was treaties.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Alain Castonguay  Senior Chief, Tax Treaties, Department of Finance
Ted Cook  Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance
H. David Rosenbloom  Caplin and Drysdale, New York University, School of Law, As an Individual
Alain Deneault  Researcher, Réseau justice fiscale Québec
Brigitte Alepin  Chartered Accountant, Tax Expert, Tax Policy Specialist, Author, As an Individual
Arthur Cockfield  Professor, Faculty of Law, Queen's University, As an Individual
Dennis Howlett  Executive Director, Canadians for Tax Fairness
Brian Ernewein  General Director, Tax Policy Branch, Department of Finance

1:15 p.m.

NDP

Murray Rankin NDP Victoria, BC

The same as politicians.

1:15 p.m.

Voices

Oh, oh!

1:15 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

I agree with Mr. Rankin, as he chimes in, that certain politicians get it wrong as well, but in this case, I don't believe I'm wrong, sir. You're basing it on information and you're not prepared to say where it came from, and based on sometimes—

1:15 p.m.

Executive Director, Canadians for Tax Fairness

Dennis Howlett

The journalist analogy is a good one. Normally, any responsible journalist will not base a statement or a story only on one source. They check their sources. I know, from having submitted to journalists for publication, that they don't accept publication of an opinion article without multiple sources being checked.

1:15 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Well, sir, I have—

1:15 p.m.

Executive Director, Canadians for Tax Fairness

Dennis Howlett

In this case, that was done.

1:15 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

May I interrupt for just a moment?

1:15 p.m.

Executive Director, Canadians for Tax Fairness

Dennis Howlett

I have multiple sources that corroborate the information I was getting initially from one. I did not make any accusation without a pretty thorough cross-referencing—

1:15 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

I look forward to seeing those names, sir, when you submit that information.

1:15 p.m.

Executive Director, Canadians for Tax Fairness

1:15 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Do I have time left, Mr. Chair?

1:15 p.m.

Conservative

The Chair Conservative James Rajotte

You have about one minute.

1:15 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

As far as the tax convention goes, though—and that is why we're here—I have listened to all of the testimony today, and I must say that I didn't hear anyone, except perhaps Ms. Alepin, who thinks we ought not to proceed with it.

If I made a mistake in interpreting that, Madam Alepin, please correct me, but in your opening statement you did say that you do not support these tax conventions. Am I correct in my interpretation?

1:15 p.m.

Chartered Accountant, Tax Expert, Tax Policy Specialist, Author, As an Individual

Brigitte Alepin

I said in the opening statement, as you said, that I do not support Bill S-17. But at the close of my statement, I said that although I do not support it, I do realize that all the energy we are investing in trying to implement this system and the energy we are investing in trying to oppose it, as we presently do, may be a waste of time, considering the fact that maybe we should proceed in another way if we really want to stop this unfair system, whereby only a small group of taxpayers can take legal advantage of tax havens.

1:15 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Sure, and I appreciate that.

So to sum up, it sounds as though everyone except Ms. Alepin says this might be only one or two steps forward, and we'd like to take a hundred steps forward, but it is in the interests of Canada at this point to take at least those two steps forward.

Thank you.

1:20 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you.

Colleagues, the meeting is over at 2. We have to do clause by clause, but other members have indicated that they wish to ask questions. Can I get an indication as to how long clause by clause will take?

It will take no time at all?

1:20 p.m.

NDP

Murray Rankin NDP Victoria, BC

For the reasons we indicated, we're not going to oppose this bill on a clause-by-clause basis. So we don't need much time. I don't know how long your procedure takes, but we're not going to be registering—

1:20 p.m.

Conservative

The Chair Conservative James Rajotte

My procedure takes very little time.

1:20 p.m.

NDP

Murray Rankin NDP Victoria, BC

So we have no clause-by-clause response to make.

1:20 p.m.

Conservative

The Chair Conservative James Rajotte

Mr. Hsu, do you have a comment on clause by clause? Okay.

Ms. Glover's time is up.

I don't have a certain time for clause by clause, so it depends.... We just have to finish the meeting by 2 p.m.

Monsieur Caron, is it a final round here then? I'm being very generous as chair, but we're really straying way beyond Bill S-17 in a lot of our questions and answers.

So if it's something germane to S-17....

1:20 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

I will have a question for the officials when they come.

1:20 p.m.

Conservative

The Chair Conservative James Rajotte

It will be for the officials. Okay.

At this point, let me thank all of our witnesses for being here. I want to thank those of you who were here in Ottawa, and I want to thank Mr. Rosenbloom from New York and Monsieur Deneault from Paris,. Thank you very much for being here on very short notice. We very sincerely appreciate that.

We will call the officials back to the table.

Colleagues, I understand that you have the budget for this study before you. The amount requested is $3,800. Can I get someone to move this?

So moved by Mr. Hoback. All in favour?

(Motion agreed to)

That budget is carried. Thank you, colleagues.

Mr. Ernewein, if you wish to stay at the table, you're certainly welcome to. It's your choice.

We welcome our two officials back to the table.

Colleagues, in terms of procedure, if you look at the clause-by-clause consideration part of the agenda, that is exactly how I will be proceeding.

So pursuant to Standing Order 75(1), consideration of clause 1, the short title, is postponed. Therefore, the chair calls clause 2.

You have a question at this point, Monsieur Caron?

1:20 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

At what point can I actually ask my question?

1:20 p.m.

Conservative

The Chair Conservative James Rajotte

We'll do it on clause 2.

Mr. Caron, you can ask your question.

1:20 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Let's talk about negotiations.

Mr. Castonguay, I asked you how long the process took. You said that the treaty with Namibia was concluded first, in 2005-2006. The negotiations for a few treaties were completed fairly early—in 2006, 2007 and 2008. Why did you have to wait six years to introduce a bill to ratify them?