Madam Speaker, I am pleased to participate in this debate on the underground economy and the recognition that Canadians generally have lost faith in our tax system. Somewhere between $60 billion and $100 billion in business transactions now take place beneath the surface in a way.
My question to the minister the other day was whether or not the government was taking any definitive action to encourage those people who now want to move their operations above ground and become legitimate players in the marketplace. Also to what extent would the government introduce programs that would encourage that to occur.
What is it about the tax system that has upset people? What is it about the tax system that has discouraged people who are hard working, who are running their businesses or going off to the mills or the mines, the farmers, the fishermen? It can be summed up in the interpretation bulletin IT-518 from Revenue Canada. This was sent recently to various businesses and individuals. It gives clues on all the things one can use as a tax deduction, legitimately to be fair, within the tax system, particularly when it comes to entertainment.
For example, this is not an exhaustive list but entertainment includes tickets for theatres, concerts, athletic events, or whatever the performance might be. Renting or leasing a private box at the sports facility and buying champagne for friends is all tax deductible. Renting hotel rooms to have a party and entertain people is deductible. Buying liquor for a hospitality suite of course is tax deductible. Taking a cruise in the Caribbean, the South Pacific or to Greece is tax deductible. Taking friends to a fashion show is also tax deductible. I guess people want to learn how to dress more modernly and so on.
If you want to take your guest to a nightclub, Madam Speaker, or out to a hockey game, a football game, a baseball game or whatever; or if you want to take your friends fishing in northern Canada, northern Quebec, British Columbia or wherever; if you want to go hunting in northern Ontario, northern Saskatchewan or northern Quebec, that is all tax deductible. Generally you can say: "Let us go on a three week vacation in Labrador and we will discuss business". Again that is tax deductible.
I am not saying there is necessarily anything dastardly or terribly sinister about this. However certain people can go fishing, hunting, camping, to the football game, or rent a room to entertain friends and it is done with the help of the tax system. The taxpayers generally pick up part of that tab. If one is deducting up to 80 per cent of those costs obviously then those who are at the hockey game watching the people up in the box drinking champagne or whatever, who have free tickets or only pay 20 per cent of the price, are paying their way buying hot dogs and so on.
In closing, after reading things like this bulletin from Revenue Canada is it any wonder that people have become absolutely disenchanted and disappointed with a tax system that can only be described as unjust, unfair and biased.