Madam Speaker, I am pleased to speak to Bill S-3, an act to implement an agreement, conventions and protocols between Canada and Kyrgyzstan, Lebanon, Algeria, Bulgaria, Portugal, Uzbekistan, Jordan, Japan and Luxembourg for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The Bloc Quebecois agrees with this bill, especially since the bill is inspired by relatively standard models developed by the OECD.
The member opposite said that such protocols have been signed with 75 countries. I think that is wonderful but some of these countries have old protocols of agreement that are deplorable because they do not prevent fiscal evasion, which is the second objective of the bill. This is very important. We must not lose sight of this.
Certain corporations have head offices outside Canada and pay practically no taxes on income. When these Canadian companies bring their money back into Canada, the law tells them that they have already paid taxes in the country where they do business. The money is therefore allowed into Canada without any taxes on income. There are many companies operating abroad who are paying little or no income tax there and, when they bring their money into Canada, they do not pay a cent in taxes.
I would like to give an example that members will understand. There are three countries with whom we have duly signed conventions—old models, relics—and they are Liberia, Bermuda and Barbados. These are tax havens.
In Liberia, there are no income taxes. A company doing business in Liberia with a head office there pays one amount, $350 US a year. Whether its profits are $100, $1,000 or in the billions, it pays income taxes of only $350 US.
Let us take another example: Bermuda. Under an agreement with Canada, companies will pay no income taxes until 2016.
In Barbados, companies are subject to decreasing local taxation. In other words, the more money one makes, the less income tax one pays. The maximum tax rate is 2.5 % and the minimum rate is 1%.
Why do I mention these examples? Because the Minister of Finance owns Canada Steamship Lines. I have in front of me the organization chart of Canada Steamship Lines, which I would be willing to table in the House. I see that all the subsidiary companies are located in Bermuda, in Lebanon or in Barbados. There is practically no company any more that has its head office in Canada.
What does it mean? That Canada Steamship Lines, with its head office in Bermuda and its subsidiary in Lebanon, pays almost no income tax. Profits are imported into Canada. Here we tell them “Since you already paid income tax in the countries where you are doing business, you do not have to pay any here”.
When we see that Canada has such a great need of money to invest in health care and give back to the provinces in social transfers, I think the tens of millions of dollars that our Minister of Finance is saving through his company, Canada Steamship Lines, would really be welcome in the consolidated revenue fund. You and I, Madam Speaker, with only a simple T4, are paying a lot of income tax.
Once again, I wish to point out that the Bloc Quebecois supports Bill S-3, because it complies with the model proposed by the OECD. The Bloc Quebecois does, however, beg the government to do some serious housecleaning of all the old tax conventions it has signed with certain countries, especially those that are tax havens.