Mr. Speaker, here we are moments from midnight on June 14, and I am moved to rise in the House because, on March 8, I questioned the Prime Minister about penalty-free amnesty deals and tax treaties with countries that are known tax havens. The purpose of my question was to find out when the government would take action to end these unacceptable practices.
I applaud the fact that the Liberal government invested about $500 million in the Canada Revenue Agency to fight tax evasion, but it is going about this all wrong by failing to tackle the root of the problem. What is the point of fighting these tricky tax manoeuvres when our own laws make them possible?
We must take action on the legislative front. We need to tighten our tax laws and punish the immoral act of tax avoidance to ensure that everyone pays their fair share of taxes. We could use those revenues to invest in infrastructure, tackle poverty, and create good jobs. We need to restore tax fairness, tighten the rules on shell companies, and revise the treaties that allow large multinationals to repatriate profits from tax havens to Canada tax-free. It is unfair that it is often the wealthiest in our society who get out of paying their fair share, when they also use roads, hospitals, and schools paid for by everyone.
Every year we are losing billions of dollars that could be invested in our communities, whether in education, health, or our social programs. Organizations in my riding and across the country need those large sums of money for our communities. This situation is unacceptable. The government needs to reform the tax laws and regulations in order to crack down on those who use tax avoidance schemes that, although not fully illegal, are definitely immoral.
In 2015, wealthy Canadians invested $185.5 billion in tax havens, or 25% of all foreign investments for that year. That is more than was invested in China or Europe, but these tax havens are very small, sparsely populated states. We suspect that these investments are in no means meant to finance any real activities, but instead seek to free a handful of people from paying their taxes, people who think they are above the law. That money must stay in Canada so that it can be invested in our infrastructure and our public services. Unfortunately, because of the government's inaction, billions of dollars continue to disappear in the sun.
This past January and February, I held public consultations that drew hundreds of people. The people of my riding are concerned about tax evasion; it is an issue they raise with me often.
Like my NDP colleagues, I receive hundreds of email on the subject. The NDP moved a motion in the House calling on the government to immediately address the issue of tax havens and end the practice of offering penalty-free amnesty deals for tax cheats.
Today, I want to focus on the treaties that our country has signed with tax havens. Some taxpayers are using our lenient tax laws and morally questionable schemes to avoid paying their fair share of taxes in Canada. The wealthiest members of our society are able to use some of these tax treaties to fund tax schemes and pay accounting experts to help them get away with paying as little tax as possible. They are playing with fire and when they get a little too close to the flame and get caught, they have the means to pay tax lawyers to defend them. In the end, they always win. Meanwhile, middle-class Canadians are penalized for the slightest error on their income tax return. We have a two-tiered tax system, which is unfair. It is truly appalling.
Will the Canadian government continue to bestow favours on the very wealthy?