House of Commons Hansard #252 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was sexual.

Topics

TaxationAdjournment Proceedings

7:05 p.m.

Liberal

Steven MacKinnon Liberal Gatineau, QC

Madam Speaker, we started out with small business taxes. I took the member through a very positive story with respect to that. On carbon taxes, the member should spell out very clearly if he is taking the position for his party, that it is against meeting our Paris requirements. The member, like his colleagues, except for one, voted to implement the Paris accord, and that is exactly what we are doing.

With respect to business people, whether they be in British Columbia, my riding of Gatineau, or anywhere in Canada, I would be very surprised if the member opposite could produce a business person who is not ecstatic that we have reduced small business taxes. We will continue to do so right through 2019. I have not seen one yet, but perhaps the member could introduce me to one.

Also, I would be privileged and honoured at any point to visit the riding of Abbotsford with my hon. friend.

Public Services and ProcurementAdjournment Proceedings

7:05 p.m.

NDP

Erin Weir NDP Regina—Lewvan, SK

Madam Speaker, I rise in this evening's adjournment debate to address the issue of overpayments in the Phoenix payroll system. Being overpaid may not sound like a huge problem, but it is a huge problem when our federal public servants are asked to pay taxes and to make employment insurance and CPP contributions on money that they will ultimately have to return to their employer, the Government of Canada.

The government's original response to this situation was very lacking. We saw that a huge number, tens of thousands, of 2016 T4s were inaccurate. In order to try to avoid that problem for the 2017 T4s, the government has tried to put forward a compromise solution. We live in a social media age and we have a government that is very keen on digital communication, so I am going to try to summarize that compromise by reading some tweets from the Department of Public Services and Procurement.

On January 5, the department's Twitter account posted, “#GoC employees: Did you receive an overpayment in 2017? Call the Contact Centre or your compensation advisor by January 19, 2018. If the overpayment is processed by January 31, you will only need to repay the net amount.” However, then tweet two said, “If the 2017 overpayment is not processed by the end of January, you will have to repay the gross amount. The Pay Centre or your compensation advisor will confirm if your overpayment was processed.”

It strikes me that the government should be trying to ensure that no federal public servant has to repay a gross amount that they are not actually receiving, but the government has tried to make this contingent on the January 19 deadline. What do we then see?

From that same Twitter feed on January 11, “#GoC employees: the Pay Services Client Contact Centre is currently experiencing higher than normal call volumes.” Then we have, “If you were trying to report an overpayment, you may also submit a Phoenix Feedback Form to inform the Pay Centre of your situation, and no further action will be required.” “We apologize for any inconvenience this is causing and will keep you informed of our efforts to resolve this situation.”

My office understands that when employees submit that online form, they do not get any confirmation of whether or not it has been received, so understandably people are nervous. I am wondering if the Parliamentary Secretary to the Minister of Public Services and Procurement can inform the House how many overpayments were reported by the January 19 deadline and whether or not those files are being successfully processed for the end of the month.

I would also note that the Minister of National Revenue could issue a remission order to ensure that these Phoenix overpayments are not subject to tax. I would like to ask the parliamentary secretary whether his government is prepared to issue a remission order to ensure that no federal public employee has to pay tax on a Phoenix overpayment.

Public Services and ProcurementAdjournment Proceedings

7:10 p.m.

Gatineau Québec

Liberal

Steven MacKinnon LiberalParliamentary Secretary to the Minister of Public Services and Procurement

Madam Speaker, I thank my colleague for his questions.

I am pleased to inform the House of the progress we have made on overpayments. The government wanted to give priority to overpayments made to public servants in 2017, in order to avoid the problems that might arise from inaccurate T4s.

In a more general context, we know that we are trying the patience of public servants and the public in general. Again, I want to assure public servants and all Canadians who are watching that the government is assigning all the staff necessary to resolve the problems associated with the Phoenix pay system. We are of course working together with our employees and public service union partners. When the Phoenix pay system is stabilized, this will have been done for and by our public servants.

There is a window for the overpayments. If an overpayment made in 2017 is processed in January, the employee will receive a correct T4. If public servants report an overpayment or if they are identified by the system as having received an overpayment within this window, they will receive a correct T4. Otherwise, an amended T4 will automatically be sent to the Canada Revenue Agency, and the employee's tax return will automatically be updated. This makes it easier on the employee.

Unfortunately, as my colleague surely knows, deductions, such as the Quebec Pension Plan, the Canada Pension Plan, and employment insurance belong to the employee. Departments cannot collect or reclaim these deductions, which is why the gross amount must be paid back to the government.

We know there is a problem, and to fix it, we will only be asking employees to repay the overpayment as of July 1, 2018. Furthermore, there will be a reimbursement plan with very generous terms for employees to repay the money. Employees will have time to receive the refund of the taxes they are owed, and then to plan and budget the repayment.

We know that this is not ideal, which is why we wanted to focus on and prioritize the overpayments at the beginning of 2018. A large number of public servants have reported overpayments, but we had already identified some of them. We are making a lot of progress to prevent the problem my hon. colleague described.

I thank him for his comments. I would be happy to continue discussing potential solutions with him.

Public Services and ProcurementAdjournment Proceedings

7:15 p.m.

NDP

Erin Weir NDP Regina—Lewvan, SK

Madam Speaker, I thank the parliamentary secretary for his remarks, although I know that he did not really answer the questions that I raised. Therefore, I want to provide him with another opportunity to enlighten the House as to how many overpayments were reported by the January 19 deadline, and to give us some sense as to whether or not they are being processed successfully.

I would also like to raise the possibility of a remission order to ensure that federal public servants do not have to pay income tax on Phoenix overpayments. If the government is confident that the system will work as smoothly as the parliamentary secretary suggests and that public servants will not be on the hook, then surely it should be willing to issue this remission order to make sure that is the case.

Public Services and ProcurementAdjournment Proceedings

7:15 p.m.

Liberal

Steven MacKinnon Liberal Gatineau, QC

Madam Speaker, I want to make one thing very clear to all the public servants and Canadians who are tuning in: all public servants will be paid the money they are owed, the money they have earned.

I am personally committed to ensuring that all public service employees receive what they are owed, and I am going to make sure that happens.

Naturally, in the case of overpayments processed after the early January deadline, we need to ask for the gross amount back. We are instituting very generous repayment conditions for employees.

I am not in a position to answer the member's question specifically, given that we have received reports from a large number of public servants. However, in many cases, we had already identified them. To avoid duplication, I would ask my colleague to be patient. We will make sure the information gets out. I can assure you that we are working on it.

Public Services and ProcurementAdjournment Proceedings

7:15 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

The motion to adjourn the House is now deemed to have been adopted. Accordingly, this House stands adjourned until tomorrow at 10 a.m., pursuant to Standing Order 24(1).

(The House adjourned at 7:18 p.m.)