House of Commons Hansard #230 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was economy.

Topics

Presence in GalleryStatements By Members

2:15 p.m.

Some hon. members

Hear, hear!

EthicsOral Questions

2:15 p.m.

Regina—Qu'Appelle Saskatchewan

Conservative

Andrew Scheer ConservativeLeader of the Opposition

Mr. Speaker, the paradise papers reveal that the Prime Minister's chief fundraiser, Stephen Bronfman, moved millions of dollars to offshore tax havens through a complex web of entities in the U.S., Israel, and the Cayman Islands. The papers show evidence of bogus records to hide payments, false invoicing, and six-figure gifts to avoid paying tax attributed to Bronfman.

At the height of a softwood lumber dispute, the Prime Minister chose to take Stephen Bronfman to a state dinner at the White House, leaving his Minister of Natural Resources behind. I have a simple question. What business did Bronfman have at the White House?

EthicsOral Questions

2:15 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, if you will permit, on behalf of all Canadians, I extend my deepest condolences to the families and friends of those who were killed in Texas, and we hope for a speedy recovery for all of those who were injured yesterday. It is appalling that this act took place in a place of worship, where worshippers should have felt safe. Canada, as a nation, stands in solidarity with the United States during this difficult time.

On the other matter, I can assure the opposition that we are fully committed to fighting tax avoidance and tax evasion, and we will continue to ensure that the CRA pursues all infringers upon that for the many years to come.

EthicsOral Questions

2:20 p.m.

Regina—Qu'Appelle Saskatchewan

Conservative

Andrew Scheer ConservativeLeader of the Opposition

Mr. Speaker, the Prime Minister spent part of the summer and the fall treating small business owners like tax cheats. He accused them of using loopholes to save on taxes.

Let us see what he will do now that some of the Liberals' closest advisers were named in the Paradise Papers and they are the ones who allegedly used loopholes to shelter their fortunes.

How long has the Prime Minister known that Liberal bagman Stephen Bronfman avoids paying all of his taxes in Canada?

EthicsOral Questions

2:20 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, we are fully committed to combatting tax evasion and aggressive tax avoidance. I will let the individuals concerned comment on their own situation, but I will say that the Canada Revenue Agency is reviewing links to Canadian entities and will take every appropriate action with respect to the paradise papers.

In the last two budgets, we invested a historic amount of money to combat tax avoidance and evasion, and our plan is working. There have been 627 cases transferred to criminal investigations, 268 search warrants, and 78 convictions. We will continue—

EthicsOral Questions

2:20 p.m.

Liberal

The Speaker Liberal Geoff Regan

Order. The hon. Leader of the Opposition.

EthicsOral Questions

2:20 p.m.

Regina—Qu'Appelle Saskatchewan

Conservative

Andrew Scheer ConservativeLeader of the Opposition

Mr. Speaker, first it was the Minister of Finance and now it is Liberal bagman Stephen Bronfman who has been caught red-handed. He apparently hid part of his personal fortune in a tax haven.

Why is the Prime Minister still making honest, middle-class Canadian families pay more while allowing his friends to avoid paying taxes in Canada?

EthicsOral Questions

2:20 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, in the last two budgets, we invested nearly $1 billion to identify high-risk taxpayers here and abroad. The Canada Revenue Agency is reviewing links to Canadian entities and will take every appropriate action regarding the paradise papers.

Our investments have already yielded results. We have identified $25 billion in unreported income. We will continue to work to create a system that is fair for all Canadians.

EthicsOral Questions

2:20 p.m.

Regina—Qu'Appelle Saskatchewan

Conservative

Andrew Scheer ConservativeLeader of the Opposition

Mr. Speaker, Stephen Bronfman once said that his goal was to, “raise a lot of money and to help...[him] become the next Prime Minister.”

Bronfman became the Liberal Party's head of revenue, and he hosted cash-for-access events with the Prime Minister. One event was advertised as an opportunity for donors to “form relationships and open dialogues with our government.”

Clearly, Bronfman believed that giving money to the Prime Minister would yield favourable outcomes. When did the Prime Minister learn that Bronfman's interests included protecting favourable offshore tax treatment?

EthicsOral Questions

2:20 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, as you well know, we are fully committed to fighting tax evasion and tax avoidance. I will let individuals comment on their own situation. However, with respect to the paradise papers, the CRA is reviewing links to Canadian entities and will take every appropriate action.

In the last two budgets, we invested nearly $1 billion to identify high-risk taxpayers in Canada and abroad. Our investments have already yielded results. We are on track to recuperate $25 billion from our efforts against tax avoidance and tax evasion. We will continue to work for a system that is fair.

EthicsOral Questions

2:20 p.m.

Regina—Qu'Appelle Saskatchewan

Conservative

Andrew Scheer ConservativeLeader of the Opposition

Mr. Speaker, over the past two years the current Liberal government has demonized retail workers who enjoy an employee discount. It has demonized hard-working entrepreneurs and business owners, and characterized them as tax cheats. The Prime Minister is even raising taxes on diabetics to pay off his billion dollar deficits. Meanwhile, he is here in the House defending a man who hid his assets from the Ethics Commissioner.

Why is it that under the current government, it is always the middle class and working Canadians who pay a bit more, while wealthy friends like Stephen Bronfman always end up getting away paying less?

EthicsOral Questions

2:20 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, I am happy to talk about what we have done over the past two years. We raised taxes on the wealthiest 1% so we could lower them on the middle class. We have delivered a Canada child benefit that gives more money to nine out of 10 Canadian families to help with the high cost of raising kids. We did that by stopping to send child benefit cheques to millionaire families. On top of that, we are lowering small business taxes to 9%. We have put more money in the pockets of our most vulnerable seniors, almost $1,000 more, in the guaranteed income supplement. We made it cheaper and more affordable for young people to go to school. That is what we have been doing.

EthicsOral Questions

2:20 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, the stats that Prime Minister is quoting actually shows his government is doing a good job going after the small taxpayer, going after ordinary Canadians, but it always lets the big fish go.

We know about Stephen Bronfman through the paradise papers, but let us not forget that the government, through committee, stalled the study on KPMG and the Isle of Man. Let us not forget that the government has done nothing about the Panama papers.

The government has not taken seriously the issue of tax havens and offshore accounts. When will it?

EthicsOral Questions

2:25 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, on the contrary, we have always fought strongly in fighting against tax evasion and tax avoidance. Indeed, this is a multi-billion dollar issue. That is why we made a billion dollar investment to tackle it.

We are reviewing leaks to identify any links to Canadian entities and we will take every appropriate action. We use the information received through leaked lists when they arise, but we do not wait on these lists to attack the problem. That is why the CRA has more than 990 audits and more than 42 criminal investigations related to offshore financial structures,under way as of September 30.

EthicsOral Questions

2:25 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, the government is going after the small taxpayer, but not the big fish. The Prime Minister was elected on the promise to work hard for the middle class and those working hard to join it. The middle class cannot afford accounts on the Cayman Islands, but the Liberals' rich and wealthy friends can.

The Prime Minister said shortly after his election “Tax avoidance, tax evasion is something we take very seriously”, and promised swift action. Canadians are still waiting. What is the Prime Minister waiting for?

EthicsOral Questions

2:25 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, we are fully committed to fighting tax evasion and tax avoidance. That is why we put close to a billion dollars in the last two budgets to do just that. In investing historic sums to make sure we have the right tools to crack down on tax evaders, we have concrete results delivered. There are 627 cases transferred to criminal investigations, 268 search warrants executed, 78 convictions. We will continue to work hard every day for a tax system that is fair for everyone.

EthicsOral Questions

2:25 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, hiring more inspectors without changing the current treaties with tax havens will not amount to much.

An international consortium of journalists published a list of new names of people who are benefiting from tax havens: the Queen of England, rock stars, Trump's entourage, and, in Canada, the Liberals. What a surprise. Former Liberal prime ministers, former Liberal senators, and Liberal organizers were named.

Are the Liberals doing nothing to combat tax havens in an effort to protect the Liberal family?

EthicsOral Questions

2:25 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, Canadians know full well that in our first two budgets we invested nearly $1 billion to combat tax evasion and tax avoidance.

We continue to work every day to ensure that everyone pays their fair share of taxes. The results speak for themselves: 627 cases have been transferred to criminal investigation, and there have been 268 warrants and 78 convictions.

We will continue to work hard every day to create a tax system that is fair for all Canadians.

EthicsOral Questions

2:25 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, the Cayman Islands is the kind of place where there are more bank accounts than people. Members of the middle class and those working hard to join it do not have bank accounts in the Cayman Islands.

For those who do not know, Stephen Bronfman was once the head of the Prime Minister's leadership campaign and is the chief fundraiser for the Liberal Party of Canada. He also happens to manage a trust in the Cayman Islands.

Have the Liberals failed to crack down on tax havens in order to protect Liberal organizers and friends of the Prime Minister?

EthicsOral Questions

2:25 p.m.

Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, as I said, I will let the individuals involved comment on their own situation.

Our government continues to crack down on tax evasion and tax avoidance. We will continue to work for the middle class and those working hard to join it. That is why we lowered taxes for the middle class and raised them for the wealthiest 1%. That is why we created the Canada child benefit, which gives more tax-free money to nine out of 10 families every month. That is why we are in the process of lowering the small business tax rate to 9%. That is what we are doing for the middle class.

EthicsOral Questions

2:25 p.m.

Conservative

Alain Rayes Conservative Richmond—Arthabaska, QC

Mr. Speaker, meanwhile, with his tax reform, the Prime Minister spent weeks essentially accusing our farmers, entrepreneurs, and professionals of fraud.

The paradise papers scandal is proof of the Liberals' hypocrisy. The names in there are not those of ordinary people. One is the Liberal Party's chief fundraiser, Stephen Bronfman. Another is former Liberal senator Leo Kolber. Both are very good friends of the Liberal Party.

My question is simple. When did the Prime Minister find out that his organizer had direct connections to tax havens?

EthicsOral Questions

2:30 p.m.

Gaspésie—Les-Îles-de-la-Madeleine Québec

Liberal

Diane Lebouthillier LiberalMinister of National Revenue

Mr. Speaker, our government is committed to combatting tax evasion and tax avoidance. In our first two budgets, we took concrete steps. We invested $1 billion, we have targeted four jurisdictions per year, and we have hired competent staff.

Our plan is working. We have transferred 627 cases to criminal investigation, and there have been 268 search warrants and 78 convictions. The Canada Revenue Agency is scrutinizing links to Canadian entities, and we will take appropriate action.

EthicsOral Questions

2:30 p.m.

Conservative

Alain Rayes Conservative Richmond—Arthabaska, QC

Mr. Speaker, they could speed things along if the minister asked the Prime Minister for his friends' phone numbers. Members of the Prime Minister's inner circle are using all kinds of schemes to hide millions of dollars in tax havens.

There is no doubt that the Prime Minister and Stephen Bronfman are connected. They have even vacationed together. In 2015, Mr. Bronfman said that he was prepared to do everything he could to help the Prime Minister win.

Why did the Prime Minister let his friend, the Liberal Party's chief fundraiser, avoid paying taxes like all other Canadians are required to do?

EthicsOral Questions

2:30 p.m.

Gaspésie—Les-Îles-de-la-Madeleine Québec

Liberal

Diane Lebouthillier LiberalMinister of National Revenue

Mr. Speaker, I repeat that our government is fully committed to combatting tax evasion.

The opposition members' hypocrisy is astounding. The former minister of national revenue, Mr. Blackburn, clearly stated in an interview that this was not even a priority for the previous Conservative government.

We do not need any lessons from a party that works every day to protect privileges for the wealthy. Canadians expect a fair tax system. That is what we promised, and that is what we will deliver.

EthicsOral Questions

2:30 p.m.

Conservative

Candice Bergen Conservative Portage—Lisgar, MB

Mr. Speaker, with the Liberals it is always the same, “You scratch my back and I'll scratch yours”. Stephen Bronfman said to the Prime Minister, “Anything I can do to help, just let me know”. The Prime Minister said “a big thanks for your help”, nudge nudge, wink wink, and the Liberals' buddies are taken care of once again.

Does the Prime Minister not see why Canadians are so outraged by yet another example of Liberal hypocrisy and conflict of interest?