Debates of May 28th, 2013

Technical Tax Amendments Act, 2012

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, I appreciate the member's advocacy on behalf of small businesses in his community. Small businesses are a huge driver of the economy and the success of new Canadians who have come to Canada.

I want to go back to my comments about taxes and if taxes are competently applied to the public good. Canadians, by and large, support contributing their share. At the same time, there are occasions when taxes need to be reduced.

The small business tax rate, for example, under the Conservative government, has been reduced by only 1%, and a huge part of that 1% reduction is being clawed back through a small dividend tax credit change in the 2013 budget. Some $2.34 billion will come out of small business pockets due to this dividend tax credit change over the course of five years.

How does that help small business owners reinvest in their companies, grow their companies and bring them up to technological advances? They will have $2.34 billion less to do that. This is in the context of a decrease in the large corporate tax rate from 22% down to 15%, at the cost of $60 billion, yet small business owners saw only a 1% reduction, which was then pretty much clawed back.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I would like to thank my hon. colleague for her contribution to this debate and ask her a very simple question.

As members of Parliament, should we not be focusing on promoting a more regular process for this kind of modernization of the income tax laws? Indeed, perhaps we should reduce the scope of such bills by making more regular updates. Instead of waiting 10 or 13 years to modernize our laws, should we have a more regular process to ensure that parliamentarians do not always have to consider 950-page bills, as we are doing today?

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, I would like to thank my hon. colleague for his question.

Clearly the current process is not working. I mentioned that in my comments.

It has taken over 10 years to make a few changes to the Income Tax Act. There is indeed a need for a formal process, but what is at stake here is the government's competence. Usually, governments are more competent than this Conservative government. It is normal procedure to introduce a bill like this more often, say every two or three years, yet that has not happened for many years. This is not acceptable and has to improve.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Speaker, I would like to pick up on a few comments my colleague has made about the question of choices a government makes.

In my riding of Ottawa South, there are 3,250 small businesses. They could have one, five or 50 employees, but they are the backbone of our local economy and the Canadian economy.

I want to ask the member about the choice the government is making about advertising. One of the things I hear from small business owners is how offended they are when they see hundreds of millions of dollars of advertising on TV about some kind of economic action plan, yet their small business taxes are increasing.

Could the member comment on that in terms juxtaposing the government's priorities, self-promotion versus helping to strengthen small businesses?

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, I concur 100% with my colleague's comment. Every day in my role as a small business advocate, I hear that these hundreds of millions of dollars of self-promotion are a grievous insult to the small business community. At the same time, we had the minister looking to put major new taxes and fees on small businesses in the historic Rideau Canal zone in the Ottawa area, which has since been reversed thanks to members such as that member, who spoke up on behalf of his constituents. That is just one example.

Another example of the government taking money out of the pockets of small businesses while spending it on self-promoting ads is the increase in tariffs. This is a government that has set a priority that apparently does not include small business, which is the heart of our economy and our communities. It is difficult to understand why it does not get it.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, I am very pleased to participate in this very important discussion today. I want to speak to the matter of taxes generally and why both tax legislation and a well-functioning tax system are so important to Canadians. Well-functioning is key, and I am very happy to hear my colleague across the way say a mere few minutes ago that it is not working the way it is, so I will appreciate her support of the bill when it comes to a vote.

All of this is underlined in today's legislation, the technical tax amendments act, 2012. As most Canadians appreciate, creating jobs and growing our economy is top priority for our government and the main objective of Canada's economic action plan. Since being elected in 2006, our government has been working on a number of important fronts to create optimal conditions for sustained growth. Indeed, we are making it easier for Canadian employers and entrepreneurs to successfully compete in the global economy and to make it more attractive for others to invest in this country.

The end goals here obviously are more jobs for Canadians and a healthy and thriving economy, and that “low tax in Canada” brand is getting noticed around the world. Indeed, here is what John Chambers, CEO of Cisco Systems, a major global technology company, recently had to say about Canada's economic leadership on an American television program entitled Charlie Rose:

The number one country in the world to do business is which one? It's Canada and that was a surprise to me when I first started seeing this occurring several years ago, but they have a government that partners with business to solve issues.... They are willing to work together to create an environment to say, “What does it take you to keep your jobs here or bring more jobs here?”

Key among those strategies that we are employing is our government's low-tax plan for jobs and growth that has made Canada a great place to invest. It began in 2007, when our Conservative government passed a bold tax reduction plan that started us down the road to branding Canada as a low-tax jurisdiction for business investment. At the same time, our government also encouraged the provinces and territories to collaborate in supporting investment, job creation and growth in all sectors of the Canadian economy by establishing low combined federal-provincial corporate income tax rates.

Today, we have made substantial progress toward that objective, which has lowered the federal business tax rate to 15%. Also, in 2012, the last of the provincial general capital taxes was eliminated. This follows the elimination in 2006 of the federal capital tax and the introduction in 2007 of a temporary financial incentive to encourage provinces to eliminate their general capital taxes.

There are other key measures that we have taken since 2006 to fuel job creation and spur our economic growth. They include implementing a temporary hiring credit for small business to encourage additional hiring by this vital sector; reducing the small business tax rate to 11% and increasing the amount of income eligible for this rate to $500,000; supporting manufacturers by introducing a temporary accelerated capital cost allowance rate for investment in manufacturing or processing machinery and equipment, and extending it; eliminating tariffs on imported machinery and equipment and manufacturing inputs, to make Canada a tariff-free zone for industrial manufacturers by 2015; improving the ability of Canadian businesses to attract foreign venture capital by narrowing the definition of taxable Canadian property, thereby eliminating the need for tax reporting under section 116 of the Income Tax Act for many investments; and much, much more.

The fact is that our government's low-tax plan is working, and the world is increasingly noticing, as the quote from John Chambers clearly indicated. As a result of these and other tax changes, Canada now has an overall tax rate on new business investment that is substantially lower than any other G7 country and below the average of the member countries in the Organisation for Economic Co-operation and Development. That is both an incredible achievement and a draw for investment. It has proven invaluable in helping Canada skirt the worst of the global recession.

Let me quote at length what the Canadian Manufacturers and Exporters had to say about Canada's low-tax advantage and our Conservative government's business tax cuts, and I am quoting directly:

If federal tax rates had not been reduced, Canada's unemployment rate would have exceeded nine per cent in 2009 during the recession. Today, our unemployment rate would be higher than that of the United States, with about 200,000 fewer Canadians working....

Investment meanwhile has also increased. Canada's business sector invested $25 billion more in capital assets last year than in 2007, and $50 billion more than at the depth of the recession in 2009. Investment in industrial machinery and equipment, which has been given an additional boost by the rapid depreciation that the federal government has made available to manufacturers, has risen 12 per cent since 2007, and has jumped by 37 per cent since the end of the economic downturn....

It's time we get the facts on the table. Business investment has been a key driver of economic and job growth over the past five years, and lower taxes have contributed significantly to that growth.

This is a significant advantage for Canada in the global economy and will be a key contributor to Canada's long-term economic prosperity, and we are not going to stop there.

Canada's economic action plan is continuing our efforts to preserve this country's advantage in the global economy, to strengthen the financial security of Canadian workers, seniors and families, and to provide the stability necessary to secure our recovery in an uncertain world. Canada weathered the global economic and financial crisis well compared to a lot of countries, particularly when we compare it to most other developed nations.

As the Toronto Sun noted in a March 2013 article:

Since the Tories took over, no other G-7 country has surpassed Canada in per capita job growth. Canada has added 1.5 million net jobs since 2006.

...Canada is in good shape compared to all the other industrialized countries of the West.

Nevertheless, Canada is not immune to the global challenges that emanate from beyond our borders, especially in Europe and the United States.

That is why I was extremely pleased to note that our government has stated clearly that this is not the time for dangerous new spending that would increase deficits or raise taxes, like those proposed by the NDP with its dangerous carbon tax proposal.

We have heard time and time again in uncertain global economic times such as these that the most important contribution the government can make to bolster confidence and growth is to maintain our sound fiscal position. That means maintaining our focus on fostering prosperity for Canadians and their families by growing the economy and helping to create high-quality jobs. In other words, we have to do everything we can to keep taxes low for Canadian families and businesses and also make the tax system predictable for taxpayers. That is exactly what we would do through today's legislation, the technical tax amendments act, 2012.

As members know, the Auditor General released her study in the fall of 2009 on the existing backlog of outstanding income tax legislation, a backlog that this legislation seeks to address. While outlining the delay in addressing the current backlog of outstanding income tax amendments, the Auditor General also made some important observations about the impact of not dealing with this issue in a timely manner, an impact with far-reaching implications.

Among the many negative effects for taxpayers caused by the uncertainty of the backlog of outstanding income tax amendments, the Auditor General's report identified higher costs of obtaining professional advice to comply with tax law; less efficiency in doing business transactions; inability of publicly traded corporations to use proposed tax changes in their financial reporting, as they have not been substantively enacted; and increased willingness to engage in aggressive tax planning.

Therefore, we will applaud this government for taking action to finally end this more than a decade-long backlog and the Office of the Auditor General for its report that really helped crystallize this issue for parliamentarians.

Furthermore, the Auditor General made a series of recommendations to help deal with this issue going forward, and as we stated at the outset, we agree with each of her recommendations.

For instance, the Auditor General recommended that the Department of Finance use an integrated and consistent process for recording, tracking and prioritizing all technical issues for possible legislative amendment. We agreed, and we moved to consolidate the system of the Department of Finance for ensuring that technical issues are documented and catalogued consistently, and that this system is maintained and kept up to date.

The Auditor General also recommended that the Department of Finance regularly develop and release draft technical amendments, including those that arise from comfort letters, so that taxpayers and tax practitioners know what changes will be made and can provide input. Again, we agreed, and we formally committed to bring technical amendment packages forward for consideration where appropriate, notwithstanding the fact that the prior technical amendments had not yet been adopted by Parliament.

In fact, this past December, the Department of Finance released a package of draft legislative proposals for public comment relating to a number of technical changes to the Income Tax Act and the income tax regulations.

Since there is only one level of taxpayer, we must work together to ensure Canada's taxpayers are treated with respect and taxes are kept low. An important way to keep taxes low is by returning to balanced budgets. We must recognize that balanced budgets are important for what they make possible and what they avoid.

Reducing debt frees up tax dollars that would otherwise be absorbed by interest costs. These dollars can then be reinvested in the things that matter most to Canadians, including lower taxes. Reducing debt keeps interest rates low, encouraging businesses to create jobs and invest in the future. It preserves the gains made in Canada's low-tax plan, fostering the long-term growth that will create more and better paying jobs for Canadians.

Canadian tax reductions that play an important role in supporting economic growth are those that enable businesses to invest more of their revenues in their operations. Such investments boost efficiency and productivity. It is this productivity growth that allows businesses to hire additional workers or offer higher wages in order to expand production and earn more profits.

Our government is committed to lower taxes for all Canadians. That is why we have introduced broad-based tax relief, with more than 150 tax reductions such as lowering the GST from 7% to 6% to 5% and introducing the landmark tax-free savings account.

Our strong record of tax relief is saving the typical Canadian family of four more than $3,200 each year. That is great news for Canada and great news for taxpayers. When we make these cuts, not every taxpayer benefits, but when we get an overall average savings of $3,200 per year, that means a lot to young families especially, and I have a lot of those in my riding, as many members do.

What is more—as is demonstrated in today's legislation, the technical tax amendments act, 2012—our government has been aggressive in closing tax loopholes used by a small group of taxpayers to avoid paying their fair share of taxes. I even hear there are some people in this House who have been using those loopholes. We will close them.

Ensuring tax fairness helps keep taxes low for all Canadians and their families, not only a select few. This is very important and reflects the feedback we have received from Canadians, who have consistently told us that they want a tax system that is both simpler to understand and comply with and ensures everyone pays their fair share of the national tax bill.

That is exactly what our government would deliver with this legislation. Put simply, this legislation would help ensure everyone is treated equitably under our tax laws.

Among the measures in the bill are enhancements to the Income Tax Act to better target and simplify rules relating to non-resident trusts. There are also modifications to rules to simplify and make more equitable the taxation of Canadian multinational corporations that have foreign affiliates.

In short, this legislation would close tax loopholes, crack down on tax avoidance and create greater fairness for all taxpayers.

I want to reiterate and stress in no uncertain terms tax fairness is a basic principle that our government is committed to upholding. We are proud to build upon it here today. I hope my friends across the way share our commitment. Who among us could oppose action to improve the integrity and fairness of the tax system? Who among us would oppose closing loopholes that allow a few businesses and individuals to avoid paying their fair share of tax? No one on this side of the House.

In all fairness, no one likes to pay taxes, but anyone who looks at it with a dose of reality at all realizes that without taxes we could not enjoy our standard of living, health care and all the things that sometimes we all take for granted.

Since 2006, our government has introduced more than 75 measures to close tax loopholes and ensure that taxes are fair for all. By ensuring this integrity, we help make our tax system even more attractive for new business investment, which is a key goal of our government. The fact is that we want to make sure the world knows that Canada is open for business and is the best place to invest.

In closing, tax reductions brought in by our government are allowing individuals and families to keep more of their hard-earned money and are improving incentives to work, to save and to invest, while also contributing to the government's long-term economic agenda. What is more, once the federal budget returns to balance, we have committed to building on our record with additional broad-based tax relief.

Ensuring tax fairness through today's legislation helps keep taxes low for all Canadians and their families. This will help keep our economy strong and lead to a better quality of life for every Canadian. I encourage all members to support the legislation before us today and to help create a better tax system and greater fairness for all Canadians.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, my hon. colleague across the floor talked about creating jobs here in Canada. Jobs for whom? Are they jobs for temporary foreign workers? How many jobs were created for temporary foreign workers last year?

I know my colleague is not going to answer that, so I will answer that for him. There were 300,000 temporary workers allowed into country. We believe that, yes, we need skilled workers. We need highly skilled workers for jobs when we cannot find the workers here. However, last year, as we have seen through scandals throughout the last year, 300,000 temporary foreign workers were allowed into the country. My question for my hon. colleague is this: how is the government going to fix that broken immigration system that allows for unskilled workers to be imported into Canada?

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, we all know that many members from across the way, and I am not sure if my colleague who just asked the question was one of them, did ask for favours under this program because it benefited jobs and businesses in their ridings. At the same time, we know that with every program, from time to time there are people who literally lie awake at night trying to figure out ways to abuse a program that is there for good reasons. The Minister of Human Resources and Skills Development and the Prime Minister have committed to fixing that program, and we will.

The member who asked the question may have come in halfway through my speech, but I did use a quote in my remarks from an organization that talked about the number of real jobs that we have created in our country. We will stand second to no one when it comes to job creation.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, I listened to the member for Bruce—Grey—Owen Sound's remarks with interest. I know that he himself is a small business person and certainly has the interests of his businesses in his community at heart.

However, despite the PMO talking points behind his speech, the fact of the matter is that the Conservative government is doing a poor job. Growth has flatlined. We are lagging behind a number of our important competitors. Youth employment is stuck at high rates that are double that of other Canadians. The number of people out of work is still more than 200,000 persons higher than it was when the government first came in. Additionally, 25% of graduates are underemployed.

It is not working. I pointed out some of those of factors, as did the member for Ottawa South, who talked about taxes on businesses in his community.

My question is this: which economists would have advised the government that reducing the GST and then increasing EI payroll taxes by almost $10 billion, as well as adding other tax burdens around dividends and R and D credits to compensate for the GST reduction was the right trade-off for the economy? My understanding is that the GST was not supported by the economists, and these taxes on small businesses are definitely having a dampening impact on our economy, growth and jobs.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, I am glad that the member brings up the GST, because it was her former leader who declared back in 1993 that he was going to get rid of the GST, in order to get on the good side of the public, I guess we would say. Of course, we all waited for 10 long years, and that never happened. Almost immediately when this government came to power in 2006, we moved the GST from 7% to 6% and not too long after to 5%. I am glad to hear that she supports the direction in which we are going on that.

It has been over a decade since Parliament last passed a comprehensive package of technical income tax amendments. The member who just asked the question declared in her remarks half an hour or so ago that the system is not working. We all know that. The government knows that, and that is why we are all here today debating this bill. We will certainly appreciate her support on it at the end of the day.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, I would like to thank my colleague from Bruce—Grey—Owen Sound for his comments on the technical tax amendments act. Indeed, my colleague is very wise. Everyone would be better served if we could just get rid of this backlog of technical amendments.

I wanted to ask him today about something really important to me as the member of Parliament for Oshawa. He talked about Canadian manufacturers and exporters and their support for us and our government. There have been so many challenges facing manufacturers, especially in Ontario.

I wonder if I could get his comments on the different approaches. We have a Liberal government in Ontario that put in a green energy program with feed-in tariffs and we have seen recently how horribly this has affected our economy. It has driven up costs for manufacturers, small businesses and everyone in the province. They have lost at the WTO. It has just been a horrible disaster.

I would like to ask my colleague in his wisdom if he could contrast our plan as a government to lower taxes to continue investing in manufacturers and exporters versus the opposition's plan. He mentioned the topic of taxes. We see from the opposition consistently that they just want to raise taxes and bring new ones in. He talked about the carbon tax and also the $50 billion in unfunded promises from the opposition.

If he could comment on how that is going to affect manufacturers, and contrast the two approaches, it would be beneficial to us here in the House.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, the member for Oshawa is the best member that Oshawa has ever had, and I thank him for the great question.

I do not have enough time here today to talk about the amount of taxes or the will to add taxes that the opposition members would like to see. As we all know, the New Democrats have never seen or heard of a tax they would not like to put in, and the Liberals, when they are in, have never seen a tax that they have not put in, and we all know what that does to young families.

I have three young sons trying to get started out, and I can tell members that lower taxes help them to raise their families and get a better start in life, not the opposite. It is the same with small businesses.

In my riding, agriculture and tourism are probably the two biggest industries, but small businesses and small manufacturing businesses are what we have there. That is our trademark and what makes our riding. Although we had some problems through the recession, the same as most ridings did, our small business owners were able to cope, with the lower taxes and tax rates that this government has put in. It is the only way, long-term, that businesses can do it. If we do not create a climate where government can let businesses compete and be profitable on their own, we are not doing our job.

We have had nothing but praise from small business owners on this, and that is why we are going to continue in that direction.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I want to inject some numbers into this debate.

The hon. member said that reducing debt keeps interest rates low, yet when the Conservative government took office, the debt was $480 billion and it is now $605 billion. The Conservatives have added $125 billion of debt to Canada.

He said that reducing corporate tax rates is important so that there is money to invest in the corporate sector, yet Mark Carney, the outgoing Bank of Canada governor, said it has $500 billion sitting on the sidelines. Unemployment is higher today than when the Conservatives took office.

The hon. member said the number one focus is on economic growth. I wonder if he can tell us what Canada's economic growth has been over the last six years, in percentage terms. That is what I really wanted to know. Does the member know the answer to that question?

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, the amount of feedback that I talked about in my opening remarks, from representatives of different organizations who certainly support the cuts to business taxes, and the number of net jobs that we have created over recent years, say it all. My hon. colleague can ignore those comments and numbers all he wants, but the reality is that they are out there. We have had great support for a lot of things we have done in our budget, and that is why we are going to continue in that direction.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, first of all, I would like to say that I will be sharing my time with my colleague, the hon. member for Sherbrooke.

Contrary to what we just heard, while the government is trying to make up stories about a non-existent carbon tax, Bill C-48 has to do with actual tax-related issues.

This is not a platform for Conservative members to invent stories. No, this is a very important process. We are looking at how the system will change, as well as at the implementation of certain procedures and recommendations that came out of letters sent by the Minister of Finance, communications with accountants, for example, and pre-budget consultations.

We certainly support the various measures in the bill. As a result, we will be supporting the bill today at third reading.

However, a number of aspects of the overall process are problematic, and some issues have to be given due consideration. We were given 1,000 pages all at once. People will wonder how we can support what is basically a 1,000-page omnibus bill after we opposed the omnibus budget bills introduced in the past year. The answer is simple. The difference today is that we are discussing a bill that deals with the same subject, namely, various related acts. This is not like what happened last year. For example, Bill C-38 covered employment insurance reform, environmental protection and so on. For that reason, we do not have a problem with this bill.

What does bother us about the omnibus nature of this bill is that many of these measures have been dragging on for over a decade. We are not the only ones saying so. The former Auditor General also commented on the situation in her 2009 report. At that time, she pointed out that there were 400 measures that had not yet been enacted. These measures were proposed in comfort letters from the Minister of Finance or previous finance ministers in recent years, but none of them had been legislated.

I will explain how this works for the benefit of our viewers. Unlike with other bills, tax-related measures such as these are initially implemented through comfort letters in order to expedite their application. However, the House of Commons must later pass a bill to truly finalize these measures.

What the former Auditor General meant was that 400 measures had been proposed but that the House had not yet passed legislation on them. Bill C-48 contains only 200 of these 400 measures, so there is still a great deal of work to be done.

I mention this because the former Auditor General is not the only one who raised this problem. Various members of the business and accounting communities have also done so. They have testified before the Standing Committee on Finance and written letters to the Minister of Finance and the various MPs who have held that position in the past 10, 12 or 13 years, while these measures have sat on the shelf.

These people have said that it is not good for the business community, small businesses or people who have to deal with the tax code or the tax system. There is a great deal of uncertainty. The finance minister tells them that certain measures are going to be implemented but then the government waits 5, 10, 13 or 15 years before it passes legislation on these measures.

This creates a certain amount of uncertainty, which is not good for the economy, or for business people and individuals who are trying their best to understand issues that are already quite complex. Very few people outside the accounting community can really stand up and say that they truly understand the entire tax code. It is extremely complex. Fortunately, we have accountants who can help us to understand it. However, they are the ones who are saying that this somewhat haphazard approach is causing them problems.

Although we support these measures and therefore the bill, I believe that this process and this debate highlight the fact that the process needs to be reviewed and made faster.

If the minister is going to promise measures to business people, accountants and everyone concerned, those measures need to be passed in a timely manner, which has not happened in the past. Another issue that was raised is the fact that a number of measures are being passed at the same time. We need to avoid that.

As I explained, this omnibus bill is less problematic than the budget implementation bills. However, to wake up one morning to all these measures and so many related tasks will create a lot of work for accountants, business people and the public, who want to understand how the government manages the taxes they pay. It is important to make the process easier, and that is what the government should be focusing on.

As I already mentioned, we need to look at how the world is currently evolving. Tax season brings with it television ads encouraging people to buy tax software. People are making money off that, which is fine. I am not out to attack or criticize them. However, let us put ourselves in the shoes of someone who is not a tax expert. In my opinion, if the government simplified the process and made it more efficient and easier to comprehend, the public would be in a better position to understand how the system works. People would be more inclined to trust the government and how it spends taxpayers' money.

Just look at the current climate: people do not have a lot of faith in how their elected representatives are spending their tax dollars. This would be a step in the right direction and a good way to regain the public trust. Of course, this is not the ultimate solution. However, the government should have a closer look at this issue, and that is what the bill before us proposes.

I am not a member of the Standing Committee on Finance, but I had a chance to read the testimony given at that committee. It is quite interesting, because it shows just how out of touch past Liberal governments and the current Conservative government have been with reality as expressed by various accountants' associations during pre-budget consultations. They stated repeatedly that the government really needs to re-evaluate the situation.

The bill contains measures that have been under discussion since 1998. The time frame is completely absurd. If I were a small business owner who had to pay taxes and was trying to understand these measures, I would see that some of these measures were supposed to have been incorporated into our tax law in 1998 or 2001. It is 2013, and they have not yet been incorporated.

These measures are not yet part of the legislation. I see that as a serious problem. The process really needs to be re-evaluated. Every political party in the House would agree to that. Furthermore, members of the Standing Committee on Finance could examine it.

I will close on that point, Mr. Speaker. I am pleased to have had the opportunity to speak to the process, because although we support the bill, this has really highlighted some of its flaws. I think we need to use this debate as an opportunity to address these flaws and find ways to improve the system. We should not have to do this every 15 years, nor should we have to add hundreds of tax measures at the same time. A more appropriate approach would be better for taxpayers, entrepreneurs and accountants, to name a few.

Thank you, Mr. Speaker, and I now invite questions and comments from my colleagues.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I listened with great interest to my hon. colleague, who obviously has done a great deal of study on the bill.

The issue we are talking about here, in terms of this massive omnibus tax legislation that would bring the code up from many years, going back, as my colleague pointed, to 1999, is the fact that it is being done in an atmosphere in which the government is actually shutting down debate. The bill has been sitting there, but we have not done our job in the House of Commons of fully debating it.

When people back home wonder how we could possibly lose $3.1 billion, I would say to them that when we have a government that has numerous pieces of very technical information pushed through the House so that it cannot be debated, that is how we end up making mistakes.

I would like to quote Thomas McDonnell, one of the tax lawyers who spoke on the bill. He said that the changes run to well in excess of 900 pages. Further, he said:

[I]t will be passed without...informed debate in the House. Most parliamentarians voting on it will admit that they have not read it, let alone tried to fully understand the consequences of voting for (or against) it. This is not how Parliament is supposed to deal with one of its essential functions—the raising of revenue. It's sad to say it, but I don't think most of our parliamentarians understand this aspect of the role of Parliament, or, if they do, have the courage to go to the wall in defending it.

I would like to ask my hon. colleague what he thinks of the failure of the Conservatives, particularly the Conservative backbenchers. They tell us that they want to stand up when its on a woman's right to choose, but when it is about the obligation of Parliament to vet bills on raising revenue from taxpayers, nobody on that government side is interested in looking at the issue fully and having a full debate so that we understand what the issues are and protect the taxpayer.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I thank my colleague for his question and for the quote he just shared. That is precisely the problem.

When they move a time allocation motion to shut down debate, they sometimes accuse us of wasting time on bills that we support.

This bill is a perfect example. We support it, but as my colleague said so well, this is a good opportunity to study something that is very complex and important for taxpayers in every one of our ridings. We have an opportunity to debate the bill and I must admit that I am no expert on the subject matter. Nevertheless, having the opportunity to share my point of view on this bill allowed me to study the issue and understand the concerns that have been raised.

Even though we support the bill, we must point out any major flaws on behalf of our constituents, the people we represent. Missing out on this opportunity is simply unacceptable, but that has happened to us some 30-odd times since the 2011 election. It is unacceptable, shameful and unfortunate and we are seeing it more and more from this government.

As my colleague said so well, when it comes to the taxpayers' money and complex tax issues, losing this opportunity to study and debate this issue is truly unfortunate. It is too bad that there are not more people across the way who share this opinion.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for his speech.

He spent a few minutes briefly going over the economic consequences of having a very complex tax system. Adding measures that are hard even for experts to understand and making frequent changes to the system can make it even more complex.

How detrimental is it to the economy when businesses and individuals have a hard time navigating our laws and our tax system?

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I would like to thank the member for his question, which is exactly what we are asking ourselves here today.

If we look at the measures themselves, some of them will work for the people and for businesses, for the very people we represent. However, the problem is the impact they have on the economy. That is what people told the Standing Committee on Finance during pre-budget consultations. They pointed out that waiting 10, 12, 13 or 15 years for the government to incorporate promised measures creates a climate of uncertainty that is not good for the economy.

I must say that it is a bit ironic for a government that claims to manage the economy so well to foster this climate of uncertainty. That is why we are raising this issue today. The government may not be so great at managing the economy after all. This issue is proof of that.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I would like to thank the member for Chambly—Borduas for agreeing to share his time with me. I am very grateful.

I am pleased to rise today to speak to Bill C-48, which is a step any government would need to take in order to update our Income Tax Act. It is a relatively complex law. To begin, I would like to point out that I am not a tax expert or an accountant. I did study the bill, which is about 950 pages long. I did not read the whole thing because, unfortunately, I ran out of time this morning. I do understand the broad strokes of the bill, however.

As a parliamentarian, I must say that it is always disappointing to be faced with bills of such scope. I would be surprised if a single one of my colleagues has read the entire 950 pages, one by one, and knows exactly what is in this bill, unless they happen to be one of the public servants who wrote it. It is always disappointing to see such massive bills, which no average person has the time to read or reflect on. We are asked to vote on these kinds of bills, as was the case for budget implementation Bills C-38 and C-45, which were 400 pages each.

They were mammoth bills, like today's. I must say that these are important and useful measures. They have their purpose, but it is important to mention that more frequent updating could have at least made things easier for MPs. We would not have had to read 950 pages today if tax laws had been updated more frequently over the past 10 years.

The most recent technical bill of this nature dates back to 2001, and it is now 2013. As a result, some things have been dragging on for over a decade and need to be changed for the better. This bill is not flawed, but before going into details, I wanted to point out that a bill of this size is problematic for MPs and prevents them from doing their job properly.

With a 950-page bill, we need to wonder whether the government has done a good job. Why did the government wait so many years to introduce it? Why not introduce it earlier? More frequent updates would have helped. That point was raised several times in committee. I did not have the opportunity to be there, but I read the transcript.

As the member for Sherbrooke, I agree with the principle of having a clearer system and more frequent updates to allow for more effective management, particularly for businesses and individuals who do their taxes each year and must comply with fairly complicated legislation. The Income Tax Act must be one of Canada's largest pieces of legislation at hundreds of pages long.

Of course, the NDP believes that we must fight tax avoidance and tax evasion while preserving the integrity of our tax system. That is why we support the changes proposed in this bill, for they are meant to address issues that allow tax avoidance. This is not a mammoth bill like the budget implementation bills, Bill C-38 and Bill C-45, but still, it is nearly 1,000 pages long. There is a difference though. This time, these are very technical measures that we supported and that we will support again at third reading.

These changes are important. I would like to talk about the major changes, so that the viewing public can understand what they mean.

Part 1 of the bill deals with offshore investment fund property and non-resident trusts in accordance with proposals announced in budget 2010 and August 2010. These measures will ensure the taxation of Canadian residents' worldwide income from all sources.

Part 1 will therefore update the legislation in order to guarantee the integrity of the tax system and prevent tax avoidance. Of course, the NDP supports this change in order to try to keep our tax system as clear as possible. The NDP also wants to make tax avoidance impossible in any way, shape or form.

We realize that the existing legislation has some loopholes that people can use to avoid paying part of their taxes or to evade taxes in other countries. This fight will never end. People will always try to find ways to get around the law. Unfortunately, that is just how society is; some people will always try to abuse the system. As legislators, we must ensure that these people are punished or amend the legislation so that these things never happen again.

Parts 2 and 3 of the bill deal with taxation of corporations with foreign affiliates.

Part 4 deals with something important that I wanted to address as well, and that is bijuralism, an important aspect of our Canadian legal system. In Quebec we have civil law and the rest of Canada has common law. These are two different types of law. Part 4 deals with this situation that can sometimes be unclear and cause confusion.

It is therefore important in the Canadian context that these legal systems be respected in our federal laws, laws that apply to the entire country. There are differences between civil law and common law when it comes to real property, personal property and joint and several liability. The bill addresses these issues and clarifies them for individuals and businesses that have to deal with these differences.

Most of the changes are based on the specific circumstances of people in industry. In their testimony, they made their case to the legislators and the government to have the changes made. As the member for Sherbrooke, I pay taxes every year like everyone else, but I cannot put myself in the shoes of those whose tax circumstances are different or who are part of a business, for example. It is therefore important to have their comments so that we, as legislators, can change things that are flawed. Obviously, nothing is perfect.

In closing, I take issue with the size of the bill and the fact that the government waited so long to introduce such a technical bill. I am in favour of having a clearer, more precise process that is used more frequently so that the necessary changes can be made more quickly with smaller bills that are easier for parliamentarians to understand.

[Wayne Marston, NDP, Hamilton East—Stoney Creek, ON]

Mr. Speaker, my friend who just spoke talked about the length of time it took to get to this piece of legislation. In 2009, the Auditor General identified 400 technical changes that should have been completed at that point. She commented that this went back to 2001, when the Liberals were in government. Questions were raised about why the Liberal government failed to pass regular technical changes at that time.

Obviously, we have 1,000 pages before us today addressing only 200 of the 400 technical changes required. Oftentimes these changes slide into the system, even though they are not law yet, which makes things complicated. They are complicated for citizens and tax lawyers who are trying to deal with it.

Is the member aware of any plans on the government's part to start putting in these technical changes with a certain regularity?

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I would like to thank the hon. member for his question.

I hope that in the future there will be a plan and that the government will be more alert and focused on making significant technical changes to the tax system on a regular basis.

As the hon. member stated, 400 changes were proposed by the Auditor General of the time, but only 200 of them were included in the bill. There is still work to do. That said, if all of these changes had been included, the bill would have been 2,000 pages long. This is how the Conservatives do things.

I would prefer that these changes be made more often. They should also be shorter and more understandable to the average person, who expects to be able to understand tax law in order to properly obey it.

Of course the ultimate goal is to make all this clear to Canadians and to businesses, who have to file their tax returns every year and understand why they pay taxes, why they have such and such a credit or why they are in such and such a position.

In my view, these changes should be introduced as often as possible for the sake of clarity, to enable Canadians to be better informed.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, before I ask my question, do you see quorum in the House? I do not.

[The Acting Speaker, Conservative, Barry Devolin]

I believe that there is quorum in the House.

Questions and comments, the hon. member for Malpeque.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, it was just like watching ants come out of an ant hill as we asked for a quorum. Members are almost like the Prime Minister; they are in hiding over there today.

In any event, we are talking about the bill and various areas of tax relief. I wonder what the hon. member thinks of the fact that the government continues to reduce taxes to the corporate sector to the point that companies are sitting on about $560 billion of cash. They are not using that money to increase productivity, to create jobs or to develop new investments in technology. Is that not an area the government should be looking at to bring in revenues? The fact is that the tax system is out of balance, and the corporate sector is not pulling its weight.