Public Accounts Committee on Nov. 17th, 2020

[The Chair, Conservative, Kelly Block]

Thank you.

[Lloyd Longfield, Liberal, Guelph, ON]

That would reduce the shipping time, which is good for business.

[The Chair, Conservative, Kelly Block]

Thank you very much, Mr. Longfield.

We will now move to Monsieur Blanchette-Joncas.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Madam Chair.

I'll start off with a point of information. I see time is running short. Later I would like to ask that we extend the study we're conducting today of the report on the taxation of e-commerce. Without taking up too much of my colleagues' hearing time, would you tell me when I can table a motion?

[The Chair, Conservative, Kelly Block]

Thank you so much, Monsieur Blanchette-Joncas. You of course are able to table a motion at any time. We would need 48 hours' notice to be able to debate it. With unanimous consent, we could consider a motion being brought forward if the entire committee believed it was something they wanted to do.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Madam Chair.

[Lloyd Longfield, Liberal, Guelph, ON]

Madam Chair.

[The Chair, Conservative, Kelly Block]

Yes, Mr. Longfield.

[Lloyd Longfield, Liberal, Guelph, ON]

Since we've already accepted the report of the subcommittee on agenda, I wouldn't give unanimous consent, but I think this is something the subcommittee could maybe consider at another time, something we could bring up in committee business.

[The Chair, Conservative, Kelly Block]

Thank you very much for that, Mr. Longfield.

Mr. Blanchette-Joncas, would you like to respond to that, or would you like to continue with your questioning?

[Matthew Green, NDP, Hamilton Centre, ON]

Just on a quick point of order, I'm unclear why we need unanimous consent, when it sounds as though the motion that is being presented is in line with the report. I'm wondering why at this point—this is through you to the clerk—this wouldn't waive the 48-hour rule and the motion wouldn't be in order.

[The Chair, Conservative, Kelly Block]

Yes, Mr. Green, you are correct. Technically he would be well within his rights to move a motion at this time.

[Matthew Green, NDP, Hamilton Centre, ON]

Let the record show that I stood for the Bloc's rights to present motions here in committee.

[The Chair, Conservative, Kelly Block]

Thank you very much, Mr. Green.

Mr. Blanchette-Joncas, how would you like to proceed?

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Madam Chair.

Thanks to my colleagues for that information.

I will continue to use my speaking time so as not to exhaust it, and I'll also allow my colleagues to intervene. I'll be able to table the motion without notice at the end of the round of questions to witnesses.

All right?

[The Chair, Conservative, Kelly Block]

Yes, thank you very much. You may proceed.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

My question is for Mr. Hamilton.

Mr. Hamilton, the Canada Revenue Agency informed the Office of the Auditor General that it did not have the legislative authority to require accommodation-sharing platforms to collect the GST or HST directly and remit it to the government. However, we have seen that certain provinces have entered into such agreements respecting the provincial tax.

Can you explain to us why the Canada Revenue Agency doesn't have the appropriate authority to act?

[Bob Hamilton]

It's important to note the differences among various types of transactions. We don't have the necessary legislative authority to require companies outside Canada to collect and remit taxes. However, we have some authority in the case of persons who rent a house and earn more than $30,000. The provisions of the act vary with the type of transaction.

An important point in the report concerns services such as Netflix and others. There is no statutory framework under which a company outside Canada can be required to collect taxes. This is the reason we mentioned that.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Mr. Hamilton.

I'll continue with my questions following on those raised by my colleague Mr. Berthold.

The Canada Revenue Agency acts quite quickly when it comes to collecting money from taxpayers. I occasionally buy products online myself. I'm charged taxes in some cases and not in others. You'd think it's just a matter of chance.

Why aren't we systematically informed that we have to complete a declaration, even a voluntary one, that there are taxes payable?

[Bob Hamilton]

It's true that we'd recover a lot of money, but, as Mr. Gallivan said, it's always about risk for us. Some transactions involve a lot of money and uncertainty. Since the agency's resources aren't unlimited, we have to conduct a risk analysis and target our efforts where the risks are high.

It isn't just a matter of collecting money and reporting good collection findings. The ability of people to receive the information we provide is also important. That's why we constantly vary our efforts and use different methods to communicate with...

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Mr. Hamilton.

Madam Chair, how much time do I have left?

[The Chair, Conservative, Kelly Block]

You have just under two minutes.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Thank you, Madam Chair.

My next question is for Mr. Ossowski.

From what I understand, the Canada Border Services Agency has acknowledged the Auditor General's findings and recommendations. However, you don't seem to have all the necessary resources to collect, for the government, all those taxes that seem to elude you.

Are you limited by an internal administration issue or prevented by a lack of resources from optimizing your inspections and thus avoiding findings such as those the Auditor General has made in your case?

[John Ossowski]

Certainly the CARM program that I mentioned is fully funded and that project is well under way.

In terms of the e-commerce strategy that I also referred to, we're building our business case now on it in terms of financial and legislative changes that we would be seeking.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Ossowski, if the agency is indeed overworked, can you suggest any potential solutions so you can carry out your mandate more effectively and regularize your situation in response to what the Auditor General has noted?