Mr. Speaker, I am delighted to rise today to speak to our economic action plan 2013. I would like to start by congratulating the minister on the fine job he has done. To me, it is like he has hit another home run. He has been up to bat nine times and each time, it does not matter what the economic situation is, he is able to adjust, respond and create and craft a plan that is suitable for the challenges we face. I am very proud to be on the team and I am proud of our economic action plan 2013.
I have to take a quick minute to contrast our plan with what would be the policies of the opposition. Ronald Reagan once said it best in terms of how the opposition would approach it. He said, “If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it”. For our part, we know there are certain measures that we need to take to ensure a strong and vibrant economy, jobs, economic growth and long-term prosperity. These measures certainly would not be the policies of the opposition.
Today, it is important for me to focus on some of the areas in our tax system. There are two really important areas on which I will focus on. One is red tape reduction. The other is the integrity of our tax system through looking at areas such as the closure of some tax loopholes.
Another quote I always like is from Albert Einstein. He said, “The hardest thing in the world is to understand the income tax”. That was a long time ago. As our world becomes more complex, our income tax also becomes more complex and adds complexity.
There is something that is important and that is a covenant. It is a covenant that the government has with the Canadian taxpayer. Taxpayers work very hard for their money. They expect to pay the minimal amount of taxes necessary for us to do the things that are important for them. Whether that be equipping our armed forces or providing the necessary roads and infrastructure, they want us to ensure we really focus on the very important use of their money because they have worked very hard for it.
With regard to that, it is important to remember that since we came to office, our government has been focused on recognizing that and has cut taxes for Canadians over 150 times. That leaves important dollars in their pockets to do the things they want to do for their families.
Right now, it is particularly important that we are focusing in on the tax system, as many Canadians are gathering their papers together and submitting their taxes to the Canada Revenue Agency. Many people have very simple taxes. They sit down, they have their income, they might enjoy the transit tax or the arts tax credit and they might have a few expenses, but for them, it is moving forward.
It is important to note that in order to maintain the integrity of our tax system, we need to focus in on loopholes, aggressive tax planning and the use of offshore tax havens and tax evasion. All of those things mean that ordinary everyday Canadians will have to pay more money.
We are certainly committed to maintaining the integrity of our tax system and also to protecting our tax base. It is important to note that in a 2012 study, PricewaterhouseCoopers ranked Canada higher than any other G7 country based on the overall case of complying with our tax obligation. That is a really big plus for us, Canada and our system.
Our government has realized that it needs to provide the CRA with important necessary tools to crack down on tax cheats. That is why we focused in on the CRA's international audit program by nearly 40% from the last year of the Liberal government. What Canadians need to hear is this. They will hear the opposition say that we have cut the audit program and so on, but we have not. We have really focused time, energy and resources on that program and it is bearing results. We have recouped significant dollars from the program.
When Canadians hide their income and assets in foreign jurisdictions, they take valuable tax dollars away from our health care, pensions and social programs. In other words, again, we all suffer from tax evasion.
In budget 2013 we proposes a number of measures that will further strengthen the CRA's ability to address the aggressive international tax planning and to combat international tax evasion. These tools will give CRA an unprecedented ability to maintain and protect the tax base. It is also important to recognize that the finance committee is currently looking at the issue of tax evasion and the use of offshore tax havens. These measures are very consistent with the testimony we have heard from witnesses in terms of important measures the government needs to take.
We moved forward on some of the important measures we heard, because it was important not to wait. I also hope through our study the finance committee is doing, we will actually have some additional recommendations we can provide for government.
Let us take a quick look at some of the tools included in economic action plan 2013. Currently, banks, credit unions, caisse populaire, trust and loan companies are required to report international electronic fund transfers of more than $10,000. Many people will know this by the name FINTRAC. Budget 2013 proposes that starting in 2015 the same information will get reported to the Canada Revenue Agency and we will be able to use this information to verify the accuracy of information provided by taxpayers who engage in foreign financial transactions.
Another really important program, which has been tried in other countries, and the banks all indicated last week that could be a very important tool, is the international tax evasion whistleblower initiative. In budget 2013, we announced our intention to launch a new initiative to encourage individuals to report information about international tax evasion and avoidance and, if eligible, receive a payment.
In addition to these measures, budget 2013 proposes a number of other tools to assist CRA in combatting international tax evasion and avoidance. We will extend the normal reassessment period for taxpayers who failed to properly report income related to specified foreign property, revise income verification statements to require more detailed information and streamline the process for CRA to obtain information from third parties, such as banks.
The opposition had stated on numerous occasions that it considered the fight against international tax evasion a priority. Our government has long recognized this problem and has consistently taken steps to strengthen the CRA audit and compliance capabilities. I trust the opposition will see the importance of these measures and actually support us in budget 2013.
There is one other area I want to quickly focus on in terms of the Canada Revenue Agency. As many people are aware, we had a red tape reduction commission that tabled a report almost two years ago now. From that report, a number of different departments in government agreed to move further in terms of how they would take care of the issues that created an unnecessary burden on our small businesses.
It is really the important reduction of red tape. It is a silent killer of jobs. It imposes crippling costs on businesses, restricts innovation, productivity, and competitiveness. It is bad for Canada and it is bad for business.
Last summer, as we travelled the country, we heard there were simple things we could do to make a big difference. I was at about 10 different round tables. There was a form that drove our businesses and our accountants nuts. I had never heard of it before. I think it is called a T59. It was something that was a real burden for them in how they were able to authorize someone to do their income tax work on their behalf and how they could authorize a provider.
That one change was specifically mentioned. We heard from Canadians and business owners and we made the changes that were necessary.
It is important to note that the Canadian Federation of Independent Businesses praised the government's extraordinary efforts to reduce red tape for small business. The minister was delighted, and we were pleased to receive the Golden Scissors Award.
We have many initiatives, which are actually mentioned in this budget. Our government continues to look at the important issue of reducing red tape. Other things we are intending to do is to continue making it easier for businesses to communicate with the Canada Revenue Agency. My Business Account is extremely popular. Canada Revenue Agency is responding in writing through My Business Account and standing by those decisions. There is online mail. I could go on and on, but there are many great things.
I would call on all opposition parties to support these important initiatives, whether it be combatting tax evasion or closing tax loopholes. They should be looking favourably at supporting the very important measures in our economic action plan.