Mr. Speaker, several banks reported record profits in 1994. This has led observers to wonder whether the banks are paying their fair share of taxes.
Banks pay a considerable amount of taxes. They pay income tax and are subject to two federal capital taxes, including the large corporation tax which applies to all corporations with more than $10 million in capital, and the capital tax for large financial institutions which acts as a minimum tax.
During the period 1991-93, the six largest banks and their mortgage loan affiliates paid nearly $1 billion annually in federal income tax and capital tax. The banks also pay income tax, capital tax, property tax and other types of taxes to provinces and municipalities.
Members are probably aware of measures that were introduced in the last two budgets to ensure that banks, and financial institutions generally, continue to pay their fair share of taxes. This year's budget introduced a special tax on the capital of large deposit institutions, including banks.