Mr. Speaker, I want to follow on the comments of my colleague for Parry Sound-Muskoka, on the economic accomplishments of our government over the last three years, and talk about how this ways and means motion before the House today represents the spirit of many of those accomplishments.
It is a bill primarily about taxation measures. It demonstrates admirably how one can tighten up the tax system, make it fairer, but also through the tax system achieve other social goals and goals for society.
I mentioned fairness. Our government has taken a number of measures to make the tax system fairer for Canadians. Many of them are contained in this bill. The motion will amend the Bankruptcy and Insolvency Act, the Canada Pension Plan, the Children's Special Allowances Act, the Customs Act, the Old Age Security Act. It makes amendments to numerous bills which are based on the principle of fairness and achieving a social objective as well.
Since the draft amendments which are represented in the bill were first released in 1995 many helpful comments and suggestions from taxpayers have been heard and these are by and large incorporated in the bill before us today.
First of all, millions of Canadians are putting time and money into non-profit voluntary and charitable organizations. Their efforts are indicative of the collective response to urgent human needs, particularly in a period of fiscal restraint. To encourage these efforts, the percentage of net income to which a tax break for charitable donations applies will increase from 20 to 50. It will be 100 per cent in the case of testamentary gifts.
The legislation will also provide extra support for the education of our young people by increasing the limit on the transfer of education and tuition credits. To assist parents or spouses helping to support the cost of studies, if the student is unable to take full advantage of the tax credits related to the cost of their education, the ceiling will be lifted so that additional credits can be transferred to a spouse, parent or guardian responsible for the costs of the education. That increase is 25 per cent, from $4,000 to $5,000.
We also have taken a number of measures over time to assure Canadians that the system is fair, that if they are paying their fair share of taxes, to the greatest extent so is everybody else. We have done that in a number of ways.
First, it has been a question of tightening up our taxation system, closing a number of loopholes. For instance, through a concerted effort we have increased overall general compliance with the collection of taxes to the tune of $7.7 billion extra taxes collected.
Special compliance measures in selected areas have led to the collection of an additional $500 million in taxes. Accounts receivable have been reduced through a number of different measures. We have given Revenue Canada a greater ability to obtain the information it needs to ensure that taxes are applied fairly and that they are being collected.
Our mandate has given people some assurance that people are paying their fair share. I do not think there is one of us who has not heard repeatedly, every time we have had to cut a program or reduce spending in one area or another, that we should be closing those tax loopholes and taxing the corporations. A number of measures have been taken to address those fairness issues that bother so many of our constituents.
We have tightened the rules on the forgiveness of business debt. We have improved the rules preventing the artificial or premature recognition of tax losses. We imposed a 12 per cent capital surtax for banks and other deposit institutions. We have tightened up to
eliminate abuses in the energy sector while at the same time making it a more level playing field for renewable energy sources that can then compete with the more traditional energy sources and on a fairer basis.
We have introduced tighter rules governing the taxation of family trusts. We have addressed the whole issue of assets abroad both in individual taxation reporting and in the taxation reporting of businesses so that businesses with assets abroad will now have to disclose them. Property owners with assets of more than $100,000 will be required to disclose them. The government will then be better able to monitor the collection of taxes from wealthier taxpayers.
We are planning to stop the practice of moving assets offshore to avoid paying taxes. This is an age old abuse of the system which Canadians want to see brought to an end.
This bill also takes the necessary steps to protect the future of our Canada pension plan. Until now, when businesses were in receivership payment of the employer's CPP contributions often went delinquent once the business had finally declared bankruptcy. Remaining assets were divided among the creditors and the CPP contributions were left unpaid.
The legislation before us today will ensure that CPP and similar employer contributions owed to the government will now have priority. In this time of fiscal restraint Canadians can no longer afford to see the valuable dollars that support their social programs slip from the hands of government.
Through the taxation system we have done a number of things to improve child support and support to low income families. This is a massive piece of legislation before the House today. I have been able to touch briefly on a few of its provisions but with an emphasis on pointing out to Canadians that throughout our three budgets and the measures to implement those budgets there has been a tremendous effort to assure Canadians that all Canadians are paying their fair share, that we are closing those tax loopholes that make Canadians suspicious of one another from time to time and that we are doing our best to ensure not only that we are spending wisely but that we are collecting revenue in a wise and fair manner as well.