Mr. Speaker, the hon. member for Regina-Lumsden has asked when Revenue Canada is going to start paying more attention to collecting the approximately $3 billion of unpaid corporate tax. He will be happy to hear that we are paying attention and taxes owing are being collected.
I would like to clarify the amount owing by corporations. The hon. member indicated that approximately $3 billion is owed by corporations. In fact, the amount as reported by the Auditor General was $2.1 billion. Another $.8 billion was owed by employers who are not always corporations.
The hon. member should know that at any given time some proportion of taxes assessed by Revenue Canada is outstanding. These taxes are not lost revenue. They represent taxes that have been assessed but not yet collected. In many cases they are owed by honest taxpayers who intend to pay and by businesses who are trying to recover from the recession. They do not represent an untapped source of funds for the government to apply against the deficit.
These are accounts receivable which are already part of the government's fiscal plan. These moneys will be collected with interest, except where there are legitimate reasons to adjust the assessment. Less than 1 per cent of total gross revenues will be uncollectable as a result of insolvencies and bankruptcies.
I would like to add that corporations are not given special privileges. In fact, unlike most taxpayers, large corporations are subject to an accelerated collection procedure. The Income Tax Act prohibits the immediate use of enforced collection measures for most categories of debt for 90 days from the notice of assessment date, with the exception of large corporations who must immediately pay one-half of the amount assessed.
Revenue Canada's enforcement programs are based on a comprehensive strategy to encourage voluntary compliance to maximize the efficient and effective use of our enforcement resources.
All members of the House, including my hon. friend from Regina-Lumsden, will recognize that the results of this strategy are impressive: 95 per cent of taxes owing are paid voluntarily and Revenue Canada's mandate is to preserve the tax base. The department has always been and continues to be absolutely committed to the highest level of compliance possible.