Mr. Speaker, I have three points with respect to the government's policy initiatives just outlined by the Minister of Finance.
First, I am glad that in his statement he eliminated the criticism of the auditor general which had pervaded the finance committee's own report.
It makes no sense to distinguish criticism based on wasteful policies and the wasteful implementation of sound policies caused by faulty bureaucratic decisions. Waste is waste and the auditor general must fight it wherever he finds it.
Second, I agree with the minister that this entire controversy is not about the roll of family trusts as a vehicle for the evasion of taxes. The contemptible tax loopholes that once existed were closed by legislation some time ago.
I respect the integrity and goodwill of my colleagues from the Bloc Quebecois serving with me on the finance committee. However, after listening carefully for many hours to expert testimony on family trusts and capital gains taxation, I reluctantly and respectfully disagree with their continued allegations that family trusts have served recently and continue to serve as vehicles for tax evasion and avoidance.
Third, I want to raise a point of disagreement with the government's approach to solving the one clear and important problem identified by committee witnesses. This problem concerns the lack of data on real estate and private business assets left behind untaxed by emigrants. Under present rules the government taxes capital gains on these assets whenever they are sold and a fair value has been established.
Presently Revenue Canada has in place a rather unreliable system for assuring that the sales of these assets are recorded and taxed properly. Such sales are not brought to the attention of Revenue Canada automatically and emigrants avoiding the payment of these taxes are difficult to catch once they have moved abroad.
The government has chosen to tighten the net for catching all capital gains on such assets by a mandatory reporting rule and the payment of a security deposit. I find the latter provision to be an unnecessarily harsh and punitive measure. Many emigrants will not have assets acceptable to Revenue Canada as a security deposit and will be hard pressed to come up with some.
It would have been much kinder and more efficient for Revenue Canada instead to put contingent liens on real estate and ask operating divisions of the department to report the sale of privately held firms showing up in tax returns.
I regret that the government has failed to take the kinder and gentler approach to regulation and the treatment of Canadians. These emigrants deserve our respect and compassion even after they have decided to take up residence in another country.