Evidence of meeting #27 for Finance in the 42nd Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cases.
A video is available from Parliament.
President and Chief Executive Officer, Chartered Professional Accountants of Canada
Canadian taxpayers all have the right to confidential tax advice. In Canada, lawyers are able to provide confidential tax advice to their clients, and tax accountants are not.
The reason that taxpayers are allowed to have and are given the right to have confidential tax advice is that it's just good policy. It's what opens up a very frank, open, and transparent dialogue that enables the taxpayer to lay out their full tax situation so they can be appropriately counselled.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
I don't disagree with this. Actually, I agree with you in the most general case, but it also removes the transparency when there is something that's quite questionable taking place.
Prof. Lareau spoke about the case of someone making a donation that ultimately is not a donation because something is returned to the person later.
We're talking about aggressive tax avoidance. We can't do our work, and we can't get to the bottom of things regarding situations like these, because there is such secrecy.
How do we get around this? How do we ensure privacy, and how do we prevent that privacy from becoming a hurdle that encourages what could be illegal or immoral behaviour?
President and Chief Executive Officer, Chartered Professional Accountants of Canada
That's a great question. We've been on record for about 10 years, looking for the ability for our clients to access confidential tax advice from tax preparers.
We also, though, in asking for that have always said that we need to have a full dialogue on where the line is and what should not fall under confidentiality, because of those particular reasons.
I think we really do need to have a full dialogue about that. We need to get it right between the government and CRA's ability to seek compliance with the law, and the taxpayers' right to confidential advice.
Liberal
The Chair Liberal Wayne Easter
Thank you. I'm sorry. You're well over time, Guy.
You had a single question, Mr. Champagne. We'll cut it at that.
Liberal
François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC
Thank you, Mr. Chair.
Prof. Lareau and Prof. Cockfield, thank you for sharing your expertise with us.
Two things stand out in your testimony: the complexity of tax evasion and its international character.
I'm sure you are aware that, in the last federal budget, we invested $444 million so that the Canada Revenue Agency could have the technology, resources and teams needed to address tax evasion. We also focused on international cooperation.
In this regard, I would like to know what you think are the best practices in international cooperation on this issue. As you know, this is an international phenomenon. Canada may be required to fight tax evasion effectively. Prof. Lareau and Prof. Cockfield mentioned the speed, complexity and, above all, the international character of the various tax systems and the way people benefit from them.
Liberal
The Chair Liberal Wayne Easter
I have to cut you off there, because I thought it was a short question.
Can somebody give us a 20-second answer?
Professor, Faculty of Law, Queen's University, As an Individual
I will try.
I think the most important effort Canada is participating in is the OECD common reporting standard for the automatic exchange of cross-border tax information.
Liberal
The Chair Liberal Wayne Easter
I have one thing to do with the committee, and then I will thank the witnesses.
Committee members have received a letter dated June 4 from legal counsel Mr. Jamal. I think you all know the letter I am referring to. Is it okay to make that letter public? I can't see any problem with doing that.
Liberal
The Chair Liberal Wayne Easter
Okay.
With that, I certainly want to thank all the witnesses, and the members as well, for trying to stay within the parameters that we needed to adhere to in this hearing.
We thank you for your information and for coming forward today.
The meeting is adjourned.
