House of Commons Hansard #232 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was billion.
Alain Rayes Conservative Richmond—Arthabaska, QC
Mr. Speaker, on Monday, we learned that Stephen Bronfman, a close friend of the Prime Minister, was named in the paradise papers.
The Minister of National Revenue promised an independent investigation of these documents. Today, the Prime Minister said that he was satisfied with the explanations from his friend and Liberal Party bagman.
Could the Minister of National Revenue just tell us whether she agrees with her Prime Minister that his friend should not be investigated?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, I want to thank my colleagues opposite for giving me an opportunity to tell those watching us at home about everything our government has done in the past two years. We created the Canada child benefit for Canadian families who need support. We gave more money to our families. We worked with low-income workers to help them keep a larger portion of their hard-earned money by increasing the working income tax benefit by $500 million. We abolished the Harper EI reforms.
Alain Rayes Conservative Richmond—Arthabaska, QC
Mr. Speaker, the minister can keep repeating the same talking points, but Canadians are no fools.
The Prime Minister's political interference on behalf of his close friend is a clear signal to investigators that there is one rule for Liberals and another one for every other Canadian who pays taxes. The Prime Minister has the nerve to tell us that he is satisfied with the assurances that he has received from his friend and top Liberal Party fundraiser, who wants to avoid paying taxes like every Canadian does.
Is there a single member across the way who can look at us and have the courage to denounce this unacceptable situation?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, I believe that my colleagues opposite like it when we repeat ourselves so that they can understand what we are saying and hear the good news that we have for Canadians.
Fighting tax evasion and aggressive tax avoidance has been and always will be a priority for me, as Minister of National Revenue, for our government, and for the Prime Minister. We invested nearly $1 billion and we are getting a return on that investment. We are targeting four jurisdictions per year. We hired more than 100 auditors, 627 cases were transferred to criminal investigations, 268 search warrants have been executed—
The Speaker Liberal Geoff Regan
Order. The hon. member for Rimouski-Neigette—Témiscouata—Les Basques.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, tomorrow, the NDP will ask the finance committee to investigate the paradise papers and to call on Stephen Bronfman and former Liberal Senator Leo Kolber to explain to Canadians why their names, their firms, and their trusts are linked to tax havens. We hope the Liberal majority will support us, because the Prime Minister might be satisfied with explanations but Canadians are not.
The Prime Minister likes to say that sunshine is the best disinfectant. The Liberals will have a chance to show it. Will they support an investigation or will they block it like they have done for the last two years?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, the government understands that this is a multi-billion-dollar issue, and we have made historic investments over the past two years to tackle it.
The Canada Revenue Agency now has the tools to review 100% of the tax returns filed by all large multinational corporations each year. This means it can properly identify large corporations and wealthy individuals that are likely to engage in tax schemes. No one is above the law.
Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC
Mr. Speaker, that answer had nothing to do with the question that was asked.
Former senator Kolber and Stephen Bronfman, the chief fundraiser for the Liberal Party, have ties to a multi-million-dollar trust in the Cayman Islands. That is serious. Tax havens cost us billions of dollars every year and increase inequality.
The paradise papers have revealed a great deal, but not everything. To get to the bottom of this, the NDP has moved a motion to invite these two individuals to answer our questions before the Standing Committee on Finance.
Are the Liberals going to vote for our motion and show that they have nothing to hide?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, our government is fully committed to combatting tax evasion and aggressive tax avoidance, as the measures we have taken over the past two years clearly demonstrate. As for the committees, they are free to make their own choices, and I will respect their decision.
Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC
Mr. Speaker, here is a quote: “Mr. Bronfman did nothing wrong. There is not a single wealthy Canadian who has not diversified their holdings through offshore tax havens”. Who said this? It was the Liberal member for Saint-Léonard—Saint-Michel.
Here is another quote: “There are people who use a legal system and then later confirm that they acted legally”. Who said this? It was the Liberal member for Montarville.
The Prime Minister said that he is satisfied with Stephen Bronfman's explanations.
Is this why the Liberals are not tackling tax havens? Is that because they think it is okay for their millionaire friends not to pay taxes?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, during the last election, our government made it very clear in our campaign platform that we were going to combat tax evasion and aggressive tax avoidance.
Over the last two years, we have made historic investments, something that had not been done for the past 10 years. We made investments of nearly $1 billion, which have allowed us to target four administrations per year and to work on hiring 100 auditors. There have been a number of criminal charges and even 37 convictions, totalling more than 50 years of imprisonment.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, what she is not saying is that only $40 million of that $1 billion has been invested so far.
If I had any advice for the hon. member for Montarville and the hon. member for Saint-Léonard—Saint-Michel, it would be to ask their constituents whether they are happy about paying more taxes than Liberal insiders like Mr. Bronfman and Mr. Kolber.
It might be legal, but it does not mean it is moral. It is legal only because generations of Liberal and Conservative governments have made the laws that have made it legal.
We are the House of Commons and we can change laws. Will the government do it or will it block any initiative like it has done in the last two years?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, our government is fully committed to fighting tax evasion and aggressive tax avoidance. The $1 billion that was allocated to the Canada Revenue Agency over five years comes from the public purse, from taxpayers.
We are very careful about how we spend taxpayers' money in order to ensure that it is spent properly and we get results. For two years, we have been targeting four jurisdictions per year—
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, the Minister of National Revenue said something very interesting a few minutes ago.
She said that, as minister, she cannot comment on specific cases. Is the minister aware that her boss, the Prime Minister, was more than willing to comment on the Stephen Bronfman case this morning? That is what is unacceptable.
If the Prime Minister has no problem talking about Stephen Bronfman, can the Minister of National Revenue pick up the phone, call the Prime Minister, and tell him to mind his own business because that guy is currently being investigated?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, our government is firmly committed to combatting tax evasion and aggressive tax avoidance. Our investments over the past two years make that abundantly clear.
I would also like to tell my colleague opposite about all of the things our government has done over the past two years. We enhanced the Canada child benefit for the families that needed it most. We lowered taxes on the middle class. We are working to lower small business taxes. We abolished the Harper reform, which attacked people receiving EI benefits.
Gérard Deltell Conservative Louis-Saint-Laurent, QC
Mr. Speaker, it is not that the minister's comments are uninteresting, but she is not answering my question at all.
The Minister of National Revenue said that some cases were being investigated as a result of the paradise papers. One of the individuals implicated in those documents is the Liberal Party's chief fundraiser or bagman, Stephen Bronfman, who also happens to be a long-time close personal friend of the Canadian Prime Minister.
Can the minister finally confirm to Canadians that Stephen Bronfman and all Canadians implicated in the paradise papers are being seriously investigated?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, as the member opposite well knows, I cannot comment on any specific cases, nor will I be able to at any point in the future. The credibility of the Canada Revenue Agency is at stake, because confidentiality of information is a priority there.
The Speaker Liberal Geoff Regan
I would remind the hon. member for Edmonton Manning and others not to be talking when it is not their turn, when they do not have the floor. They know we have rules on this.
The hon. opposition House leader.
Candice Bergen Conservative Portage—Lisgar, MB
Mr. Speaker, maybe the Minister of National Revenue did not hear the news that this morning the Prime Minister commented on this case. In fact, he declared Bronfman innocent of all wrongdoing. Just days after the minister announced an investigation, the Prime Minister shockingly said that his billionaire buddy and chief Liberal bagman was innocent and pure as the driven snow.
It seems like the Minister of National Revenue recognizes that this is wrong. Does the Prime Minister recognize how irresponsible and reckless it is for him to unilaterally say that Stephen Bronfman is innocent?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, our government is fully committed to fighting tax evasion and tax avoidance, to make sure the tax system is fair and equitable for all Canadians.
I can assure the House that I am very proud of the leadership role the CRA has taken on the international stage. Collaboration between tax administrations, including the exchange of tax information, is an essential tool to protect the integrity of Canada's tax base. That is why the agency conducted more than 990 audits and 42 criminal investigations focusing on offshore financial structures.
Candice Bergen Conservative Portage—Lisgar, MB
Mr. Speaker, the Prime Minister's reckless words and actions have placed the Minister of National Revenue in an untenable and impossible position. The minister stated that her department was investigating this matter. However, before the investigation could barely begin, the Prime Minister already had made his finding of innocence.
This irresponsible behaviour is indefensible. Did anyone advise the Prime Minister of the legal implications of what he just did?
Diane Lebouthillier LiberalMinister of National Revenue
Mr. Speaker, our government is committed to combatting tax evasion and aggressive tax avoidance.
I have said it before and I will say it again: I am very proud of our leadership role on the international stage. I want to reiterate that, with the historic investments that have been made, the CRA has been targeting four jurisdictions per year and conducting criminal investigations. No one is above the law. In Canada, the laws apply to everyone, no matter who they are.
Mark Strahl Conservative Chilliwack—Hope, BC
Mr. Speaker, the Prime Minister knows all about investigations. After all, he is under investigation for having broken the rules on his private island getaway. However, that has not stopped him from interfering in the investigation of his billionaire fundraising friend, Stephen Bronfman, who has been implicated in the paradise papers.
How can Canadians trust those Liberals to investigate their fundraising friends when the Prime Minister has already appointed himself judge and jury, and has issued the acquittal?