Mr. Speaker, no one stands more firmly against tax evasion than the Conservative Party of Canada. We believe all taxpayers should pay what they owe in taxes, and there should be no special treatment.
The Conservative Party believes in keeping taxes low for all Canadians, but we also believe in ensuring that all corporations and individuals pay their fair share of tax. We are committed to lower taxes for all Canadians, not just a select few.
The previous Conservative government had a strong record of standing up to international tax avoidance. To enhance the integrity of the tax system, the Conservatives created the stop international tax evasion program, aimed at reducing international tax evasion and avoidance. We remain committed to addressing the issue of international tax evasion and avoidance and will continue to advocate for Canadian taxpayers.
Under the leadership of Prime Minister Harper, the government moved aggressively to close more than 85 tax loopholes, which saved the government and the taxpayers of Canada billions of dollars annually. However, I do have some concerns about the motion, which does not seem to take into account the structure of our tax system.
I think that it is offensive to Canadian taxpayers to suggest that those who take advantage of legitimate deductions and exemptions should be lumped in with those who are evading taxes by hiding money offshore. Certainly, those people who are able to claim, for example, the children's fitness tax credit or the arts tax credit, which were cancelled by the current government, were only trying to do what was best for their families. They used the deductions allowed them by law. I can only conclude that the hon. member who sponsored this motion does not understand that tax deductions are available to all Canadians. They are part of making the taxation system fair for all. They are not something offered to benefit the ultra wealthy.
No one disputes that tax evasion is a problem, whether it is $7 billion annually or $70 billion, but the hon. member cannot say for certain, as the number is only an educated guess. However, it is important to remember that we in the House are responsible for the laws and regulations of the taxation system. If there are loopholes, deductions, and exemptions, we have only ourselves to blame. It is not fair to blame the taxpayer for taking advantage of what they are legally entitled to, and I stress the word “legally” in this matter.
By all means, we should prosecute those who are breaking the law by avoiding paying taxes. However, given the spending habits of the current government, I applaud those who use legal means to keep money in their own pockets rather than hand it over to a pack of fiscally irresponsible spendthrifts who do not seem to understand that tax money is not theirs but given to them by Canadians in trust. Taxpayers expect and deserve wise stewardship from politicians, not $800,000 office renovations. No wonder people resent having to pay taxes when they see things like that happening.
The motion calls on the government to address tax measures that primarily benefit the wealthy, which seems reasonable enough. After all, we all know who the wealthy are. They are anyone who has more money than I do. That they may have earned their money through hard work and innovation would seem to be irrelevant. It is assumed by some that those they consider wealthy should be paying more, even though we talk about treating all taxpayers fairly and equally.
Perhaps a case can be made that those who have more should pay more, but I do not see the case being made in this motion. Indeed, we already have different tax brackets in Canada. The wealthy are already paying more. Therefore, exactly what measures does the motion address? We are left to speculate.
The government is also told that it should take aggressive action to tackle tax havens. The how and why is left to the imagination. I believe that if we have a fair taxation system, there will not be the same incentive there is now for those who know how to shelter their money offshore. When people do not believe the taxation system is fair, when people do not believe the government spends tax revenue wisely, it is very tempting to look for ways to keep their money out of the hands of the taxman. What we need is a government that understands that budgets do not balance themselves, a government that does not pile things like a carbon tax on hard-working Canadians.
The motion calls on the government to tighten rules for shell companies. Once again, there is no definition to be found here. It is assumed we are in agreement that shell companies need additional rules and regulations, but there is no rationale set forth in the motion. We have to take the hon. member's word that this is a problem. I do not see any suggestion of illegality here, just a call for something to be done.
The government is also told to renegotiate tax treaties that let companies repatriate profits from tax havens to Canada tax-free.
I do not think I was in the House when those treaties were approved by Parliament, but I cannot say for certain as the motion does not say which treaties should be renegotiated. I can only assume the government is supposed to know these things, perhaps through mind reading. Nor do I know why the treaties were negotiated to allow tax-free profit taking. There was probably a good reason at that time. The House can of course change its mind if it feels a mistake was made in the past.
What I do know is that renegotiating treaties carries certain risks. There has been a lot of publicity recently about politicians who want to renegotiate certain treaties. The implication is that there are winners in such negotiations and there are losers. There is not always equal treatment. If we ask to reopen a treaty, while Canada may have a certain goal in mind, that goal may not be shared by the other country or countries. We might find, after renegotiation, that there is less benefit to Canada than there is now. However, I am only speculating as there are no details here. We are just supposed to know what the bad deals are.
I understand why people are in favour of dropping the penalty-free amnesty deals for people suspected of tax evasion. Canadians are naturally upset when they hear someone has managed to avoid being penalized for tax evasion. It does not seem fair somehow. I suspect the hon. member who brought this motion forward had a particular highly-publicized case in mind.
The Canada Revenue Agency operates independently, free of political interference. This sounds to me like we politicians are trying to tell it how to do its job, when we may not know the details of what and why it does something.
As I understand it, the lack of prosecution in recently publicized cases was not a matter of special treatment, but standard procedure when people come forward and voluntarily disclose that they may owe money that was previously undeclared. To encourage such disclosure, the CRA waives penalties. That was not the case with CRA auditors finding wrongdoing. The money might never have been collected if the individuals had not come forward. The CRA might never have realized what it was owed. Therefore, while the idea of amnesty is offensive to hard-working Canadians who pay their taxes in full and on time, there are those who can make a credible case to defend the process. Removing voluntary disclosure, which seems to me to be what is being asked here, could conceivably lead to less tax being collected, not more.
It would be far better to call on the government to bring in a fair and reasonable tax system, but that is as likely as the Minister of Finance bringing in a balanced budget.