Evidence of meeting #61 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was amendment.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Roch Huppé  Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency
Ted Gallivan  Assistant Commissioner, International, Large Business and Investigating Branch, Canada Revenue Agency
James Wu  Chief, Funds Management Division, Financial Sector Policy Branch, Department of Finance

4:10 p.m.

Liberal

The Chair Liberal Wayne Easter

That one stumped you.

4:10 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

Roch Huppé

The large portion of that reduction is in relation to softwood lumber funding, and it's $125 million that's being reduced. We administer the softwood lumber program, and by doing so we remit these funds to the provinces.

What happened is that we managed to remit these funds before the end of fiscal year 2015-16. The Department of Finance had projected that we would make these disbursements in 2016-17. This is why the $128 million was included in our main estimates. It is simply now being removed because the payment has already been made.

4:15 p.m.

Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Thank you for that. Do I have extra time?

4:15 p.m.

Liberal

The Chair Liberal Wayne Easter

You don't have to take it all, if you don't want it.

4:15 p.m.

Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Okay. I'm finished, Chair. Thank you.

4:15 p.m.

Liberal

The Chair Liberal Wayne Easter

Mr. McCauley.

November 24th, 2016 / 4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Thanks for being here. Welcome.

I have several very quick questions, so I'd appreciate it if you could keep everything brief in your replies.

Can I just go back to P.E.I. and the jobs? You mentioned and I understand that if new opportunities come up, you're required to offer them the chance to move, but they can stay and you'll retrain. Is that a finance only rule? Is it just for this division, or is that across other divisions within the government? Is that a special agreement with PSAC?

4:15 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

Roch Huppé

Usually it's across government in the sense that when we move a position, we have to offer that relocation, whereby the employee can move with the position—

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Right, but with the decision to stay, you said that if the employee decides to stay, then you'll retrain that employee to keep the job.

4:15 p.m.

Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch, Canada Revenue Agency

Roch Huppé

If an employee decides to stay, in most of these cases, we will be in a position to guarantee that employee a different job in the same location as the current job.

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

That's interesting.

I just want to get back to some of the supplementary estimates. This is just to follow up on Mr. Aboultaif's question. We're running into the same issue. In our constituency offices, one out of every 100 issues is a CRA issue. Now we've seen a huge bump. These are not people hiding their money at the Isle of Man. It's Ma and Pa Kettle coming in.

I'm just wondering, with the new people—and I understand the focus is on going after the tax cheats, and we support that—is there a breakdown or a mandate of, say, hiring 100 new people, and 80 are going after corporations and 20 after carpenters, etc.? Is there a breakdown on that?

4:15 p.m.

Assistant Commissioner, International, Large Business and Investigating Branch, Canada Revenue Agency

Ted Gallivan

Yes. In other words, we have a number of distinct programs that would focus on, for example, substantiating credit claims—

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

With the increased amount of resources that we're committing to increase the number of bodies, what percentage are going after the small guy?

4:15 p.m.

Assistant Commissioner, International, Large Business and Investigating Branch, Canada Revenue Agency

Ted Gallivan

In terms of the $444 million, zero. None of the $444 million will be going after salary—

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

So it's just coincidental.

4:15 p.m.

Assistant Commissioner, International, Large Business and Investigating Branch, Canada Revenue Agency

Ted Gallivan

The only thing I would hypothesize, because I don't know the specific cases, is that even in our smaller space, for example, pharmacists who are accepting gift cards, we are increasingly going after an entire population. There was an issue with pharmacists who were asking for rebates to be paid in the form of gift cards. Gift cards are a taxable benefit, so in some cases we are contacting 1,000 taxpayers because we think we found something. We have a power called an unnamed persons requirement, where we can go to a group, like a wholesaler, and get a list.

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

This is something you would have done two years ago for a different industry or five years ago for a different industry, so it's coincidental, is what you're saying.

Okay. Very good.

On the new $440 million, what is your target for how many people you're going to hire, and how far along are you with getting those people hired, please? I'm sure you can answer that, Mr. Gallivan.

4:15 p.m.

Assistant Commissioner, International, Large Business and Investigating Branch, Canada Revenue Agency

Ted Gallivan

We always use FTEs because sometimes officials like myself get in trouble between FTEs and people, but broadly speaking, it's at 200, and broadly speaking, we have 150 or 160 in the door, but there is turnover on a continuous basis. Overall, our audit function is 10,000 people, and the number can fluctuate.

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

You're well on your way, then.

4:15 p.m.

Assistant Commissioner, International, Large Business and Investigating Branch, Canada Revenue Agency

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Perfect.

I just want to go to the FINTRAC supplementaries. There's $474,000 for funding to support disclosed financial intelligence to provincial security regulators. I looked it up. There are 68 reports. That's like $70,000 per report.

4:15 p.m.

Liberal

The Chair Liberal Wayne Easter

Mr. McCauley, FINTRAC is on Monday with the Minister of Finance, so I think this would be—

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

I'm sorry. I thought I saw it on today's.

4:15 p.m.

Liberal

The Chair Liberal Wayne Easter

No. The Minister of Finance is on Monday, I think.

4:15 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

It's my mistake. Okay.

How much time do I have left?