moved:
Motion No. 1
That Bill C-224 be amended by restoring the long title as follows:
“An Act to amend An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces”
Motion No. 2
That Bill C-224 be amended by restoring the preamble as follows:
“Whereas the residents of Quebec are the only ones in Canada who have to submit both a federal tax return and a provincial tax return;
And whereas the National Assembly and Government of Quebec have expressed their desire to put an end to this situation by entering into an agreement with the Government of Canada to allow residents of Quebec to submit a single tax return and to make the Government of Quebec responsible for collecting the taxes;”
Motion No. 3
That Bill C-224 be amended by restoring Clause 1 as follows:
“1 An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces is amended by adding the following after section 20:
20.1 (1) The Minister, with the approval of the Governor in Council, may, on behalf of the Government of Canada, enter into an agreement with the government of a province under which the government of the province will collect the federal personal and corporation income taxes on behalf of the Government of Canada and will make payments to the Government of Canada in respect of the taxes so collected, in accordance with such terms and conditions as the agreement prescribes.
(2) The Minister, with the approval of the Governor in Council, may, on behalf of the Government of Canada, enter into an agreement amending the terms and conditions of an agreement entered into under subsection (1).
(3) Any agreement entered into under subsection (1) must provide measures to mitigate the impacts that the implementation of the agreement may have on the employment of affected persons.
(4) When an agreement is entered into under subsection (1), the Minister shall undertake, on behalf of the Government of Canada, negotiations with the foreign taxing authorities in order to amend the income tax treaties, income tax agreements and tax information exchange agreements that they have entered into with Canada so that the government of the province has access to all the tax information necessary to implement the agreement from those taxing authorities directly.”
Motion No. 4
That Bill C-224 be amended by restoring Clause 2 as follows:
“2 Within 90 days of the coming into force of this Act, the Minister shall undertake discussions with the Government of Quebec in order to enter into, within a year, the agreement referred to in section 20.1 of An Act to authorize the making of certain fiscal payments to provinces, and to authorize the entry into tax collection agreements with provinces.”
Mr. Speaker, thank you for reading all of my amendments into the record.
I am very proud to introduce this bill in the House. The bill seeks to establish a single tax return administered by Quebec. I am also very proud that my bill received the support of a majority of the elected members of the House at second reading. The committee study went well. We had some enriching and constructive debates. From my perspective, the concerns about the transition and about jobs have been satisfactorily addressed. The proof is that the NDP decided to support the bill. I also believe that the committee study of this bill confirmed that Ottawa would maintain its own tax policy, and the only change would be having just one tax collector, namely Revenu Québec.
I cannot find the words to describe my shock and surprise at the Conservative members' decisions during the vote in committee. They chose to reject every clause of the bill, even its title. It was unbelievable. Obviously, the Government of Quebec has expressed its disappointment with the Conservatives' about-face in committee. They did not invite any witnesses and seemed to support the bill but then chose to vote against it.
That is why I am calling on the members of the House to vote again on this bill, which seeks to establish a single tax return for Quebeckers. If my colleagues support this bill, I encourage them to vote in favour of the amendments that I am proposing today and to support the implementation of a single tax return administered by Quebec.
I would also like to sincerely thank the member for New Westminster—Burnaby for supporting the bill in committee. The NDP said that it supported the principle of the bill but expressed concerns about protecting jobs. The debates in committee showed that it is perfectly possible to keep jobs in the regions. Since the federal public service is already understaffed and overly concentrated in Ottawa, the government would be free to reassign some staff to other duties.
The Syndicat de la fonction publique et parapublique du Québec, or SFPQ, explained to the committee that it is fairly common to see employees move from one level of government to another and that this can be easily done. Employees would be able to keep their jobs and all of their benefits.
Let me go over what is proposed in the bill. It calls on the government to undertake negotiations with Quebec to enter into an agreement about a single tax return that would be administered by Quebec. The bill states that discussions must be undertaken within 90 days and an agreement reached within a year. That seems good to me. The bill also allows Revenu Québec to access Quebec taxpayers' foreign tax information for consistency. Lastly, the bill calls for special attention to maintaining jobs.
That is exactly what the Government of Quebec and Premier François Legault want. It is exactly what all parties in Quebec's National Assembly want, unanimously. It is exactly what Quebec's business community and unions, such as the Centrale des syndicats du Québec and the SFPQ, want. It is exactly what the people of Quebec want. According to the Research Institute on Self-Determination of Peoples and National Independence, eliminating duplication could save $425 million a year.
I was so surprised to see the Conservatives drop this bill during the vote in committee. They used job protection as an excuse to justify their actions. The bill I am introducing calls for protecting those jobs. In 2019, the Conservatives moved a motion in favour of a single tax return in Quebec and it proposed nothing to protect jobs. When the previous Conservative leader, the member for Regina—Qu'Appelle, said he supported a single tax return administered by Quebec, he never talked about protecting jobs. When this commitment was unanimously adopted at the Conservative convention in Halifax, it was never a question of protecting jobs. When this ended up in the Conservatives' platform during the last election, there was not a single word about job protection.
As soon as the bill was rejected in committee, the Conservative Quebec lieutenant was quick to note that his party was in favour of a single tax return administered by Quebec even though the Conservatives had just rejected this bill. The same goes for the Conservative leader: at his party's convention last Friday, he again made a very clear commitment to support the plan. The Conservatives are in favour of a single tax return provided there is no risk of it coming to fruition, but as soon as it gains traction they flee. I am asking the Conservative members to fix their mistake in committee and support the amendments I am presenting to implement the bill. Let them listen to the commitment made by their leader and their Quebec lieutenant.
Newspaper columnist and former Conservative Party staffer Marc-André Leclerc urged the Conservative leader to support my bill, saying that he “has a duty to prove that his love for the Quebec nation is not a fleeting love”.
Quebec Conservatives are disappointed with the way the Conservatives voted, because the bill has widespread support in Quebec.
I now want to reveal some new information to the House. The work done in committee helped us uncover the real reason that the government and the Liberal members are opposed to this bill. The reasons given in their speeches do not hold water and can be described as ridiculous at best.
From written correspondence provided in response to a question that I had submitted to the Department of Finance, we learned that Ottawa makes a lot of money from administering provincial taxes. Therefore, it is not in Ottawa's interest to let the provinces administer their taxes themselves. Above all, Ottawa does not want to set a precedent or give the provinces any ideas about administering their taxes themselves by following Quebec's example with this proposed single tax return.
In committee, the representatives of the Departments of Finance and National Revenue told us that Ottawa does not charge the provinces anything for collecting their taxes. By the Liberals' telling, the Canada Revenue Agency is practically a charity that is there to serve the provinces.
The only thing is that is not at all how it works. We have learned that the tax collection agreements are stacked heavily in favour of Ottawa. In these agreements, the federal government must remit to the provinces all of the taxes it collects on their behalf, without much of an effort. As soon as the federal government makes a little effort, it keeps the difference for itself. In five years, the federal government pocketed $4.5 billion in provincial taxes that it kept from the provinces. That is almost $1 billion a year. That is a tidy sum, and is certainly enough to convince the Liberals to oppose the Quebec National Assembly's unanimous request. It is best not to give the other provinces any ideas, for fear that Ottawa would lose out on $1 billion of the provinces' money a year. That may also have been the reason the Conservatives decided to fight the bill.
In presenting my amendments to the House, I encourage all members of Parliament to support a request from the Quebec National Assembly and its premier. I urge the Conservatives to change their minds. Scoring a goal is all well and good, but not when it is in your own net or in Quebec's. I urge the New Democrats to be consistent and show solidarity with Quebec's unanimous demand. It is possible to save the jobs. I urge the Liberals to do this for Quebec and work to make the government more efficient. By this, I mean that we need to eliminate duplication, since the work does not need to be done twice.
The government has the means to protect the jobs in the regions, as long as the will is there. The federal public service is understaffed and is far too centralized in Ottawa. I am calling on the Liberal members and all members of the House not to be swayed by the argument that Ottawa makes $1 billion a year on the backs of the provinces and that things need to stay the way they are. This is not right, and I would even say it is cheap.
I would also remind the House that after years of negotiation, Quebec City managed to come to an agreement with Ottawa regarding the collection of sales tax from businesses. Rather than Ottawa collecting the GST and Quebec collecting the QST, Revenu Québec collects both the GST and the QST at the same time. This means far less paperwork for businesses and generates significant savings. Revenu Québec is present in every region of Quebec, and this system works well. It has been successful, and no one complains about it.
Could we do the same thing with income tax? That is simply what this bill proposes, and I am confident that it will pass in the House.