Madam Speaker, it is always a privilege to rise in this House.
In an uncertain future, our government is working hard to ensure that Canada's economy works for the middle class. We believe that when we have an economy that works for the middle class, we have a country that works for everyone, and that means ensuring everyone pays their fair share of taxes.
Over the last year, our government has done some big things. We were elected on the platform of growing the middle class, and that is exactly what we have been doing.
We started by raising taxes on the wealthiest 1% of Canadians so we could cut taxes for the middle class. Specifically, we reduced the 22% federal income tax rate to 20.5% for 2016 and all subsequent tax years, and we raised the taxes on the wealthiest Canadians by introducing a new top income tax rate of 33% for individuals with a taxable income of over $200,000. As a result, nearly nine million Canadians pay fewer taxes today.
In today's economy, Canadian families need all the help they can get. This is why we introduced the Canada child benefit, which is a real game changer. The Canada child benefit is making a real difference in the lives of Canadians and their families' budgets. Compared with the old system under the previous government, the Canada child benefit is simpler, fully tax-free, more generous, and better targeted to those who need it most. Because the government is no longer sending cheques to millionaires, nine out of 10 Canadian families are receiving more child benefits than they did under the previous government. Families benefiting saw an average increase of almost $2,300 per year. On a monthly basis, that is almost $190, on average, that families receive directly into their pockets. That is extra money to help Canadian families pay for school supplies, their children's education, and child care expenses.
Furthermore, on March 2, the final step to strengthening the Canadian pension plan was put into force. This means that strengthening the CPP is no longer an idea, but a reality. This historic agreement between Canada's federal, provincial, and territorial governments will ensure that today's young Canadians will be able to count on a strong public pension plan when they retire in the future. At maturity, the CPP enhancement will increase the maximum CPP retirement benefit by about 50% which, in today's dollars, represents an increase of nearly $7,000 to a maximum benefit of $20,000.
It is evident that we are working hard to deliver real change for Canadians. In that time, significant early progress has been made. However, more hard work lies ahead.
Paying our fair share of taxes is essential to financing the measures that enhance the lives of all Canadians. When certain individuals or corporations find ways to skirt the system, it is the middle class that usually picks up the tab. That is totally unacceptable and counterproductive to our country's goals. That is why making the tax system more fair is an ongoing priority of this government.
As announced in budget 2016, the Government of Canada is conducting a comprehensive review of federal tax expenditures. It is doing so in recognition of concerns that have been expressed regarding efficiency, fairness, and the complexity of the tax system. The objective of the review is to ensure that federal tax expenditures are fair for Canadians, are efficient, and are fiscally responsible.
External experts have been engaged to provide evidence and advice to the government. This approach ensures that the review is informed by a range of perspectives, both inside and outside government.
In addition, the government is committed to strengthening the efforts to combat international tax evasion and avoidance. We have taken, and we will continue to take, measures to do this. These efforts help protect the revenue base and give Canadians greater confidence that the system is fair to everyone.
Budget 2016 invested $444 million over five years directly into the Canada Revenue Agency to crack down on international tax evasion and combat tax avoidance. This investment is enabling the CRA to hire additional auditors, develop robust business intelligence infrastructure, increase verification activities, and improve the quality of its investigative work. These new investments to support the CRA's efforts to crack down on tax evasion and combat tax avoidance are expected to generate around $2.6 billion in taxes over five years.
With the benefit of these new resources, the CRA has set up teams to focus exclusively on promoters of offensive tax schemes. As a result of these new reporting requirements, the CRA has been tracking information on electronic fund transfers over $10,000. Based on the information collected, audits of the highest risk taxpayers moving money between Canada and offshore jurisdictions are under way.
So far, a total of 41,000 transactions have been analyzed, totalling over $12 billion. Overall, the CRA is currently conducting audits of over 820 taxpayers and criminally investigating 20 cases of tax evasion related to offshore accounts.
That said, we also recognize that assessing tax revenues alone is not enough. Once we do an assessment, we need to be able to collect the unpaid amounts. That is why budget 2016 invests an additional $351 million over five years to improve the CRA's ability to collect these outstanding tax debts.
The Standing Committee on Finance, of which I am a member, tabled a report just last October on the study of tax avoidance and evasion. The report concluded with 14 recommendations to the government, including, but not limited to, the following: conducting a review of the voluntary disclosures program; requiring all tax advisers to register their tax products with the CRA; improve relationships between the CRA and the Department of Justice, which prosecutes these cases of tax evasion; improve statistical reporting requirements at the CRA on their efforts on tax evasion and avoidance, for transparency; and taking a lead in ensuring global implementation of the OECD and Group of 20's recommendations on the issue.
Just two weeks ago, the government provided its official response to the report. I am proud to share that in the response, the government affirms its support of all 14 recommendations. Additionally, the government shared the work that has already been done or is currently being undertaken to ensure all Canadians pay their fair share of taxes in our great nation.
Before I conclude, let me emphasize that our government is focused squarely on Canadians and the things that matter most to them. Things like growing the economy, creating jobs, strengthening the middle class, and helping those working hard to join it. Part of this responsibility includes making sure Canada's tax system works for everyone and that we all pay our fair share.
Going forward, we will continue to monitor and strengthen the tax system, so that we can continue to bring real change to the middle class and to all Canadians.