Mr. Speaker, I thank my colleague from Montarville for moving this motion, even though I find it a bit odd that he is asking for the support of members of the House while criticizing the work that the Conservatives have done to fight tax evasion.
Today, we have another opportunity to show Canadians that the Conservatives are firmly resolved to combatting tax evasion. We believe it is important to maintain a sense of tax fairness at all levels. Simply put, those who avoid paying taxes, which is illegal, should not be allowed to get rich at the expense of honest, hard-working Canadians.
The world is still fighting the COVID-19 pandemic. As we know, economies have been hard hit and that has created a lot of financial uncertainty. It is therefore more important than ever that measures be taken to guarantee the security of our tax systems and the collection of taxes by governments.
The disproportionate deficit that the Liberal government is currently running only reinforces the urgent need to put an end to tax evasion. The money that is flooding into tax havens will be needed to help our children's great-grandchildren pay off the no-limit credit card the Liberal government has in its hands.
Various estimates suggest that Canada loses between $5 billion and $10 billion annually to tax havens. For instance, a November 2020 report by the Tax Justice Network suggests that Canada loses $7.9 billion annually to tax havens. That is equivalent to the annual salaries of about 100,000 nurses. That is a lot of money.
A report published by the Quebec National Assembly in March 2017 estimated that tax havens have prevented the Province of Quebec from collecting between $0.8 billion and $1 billion in taxes. According to the Institut de recherche en économie contemporaine, Quebec is actually losing between $1 billion and $2 billion. According to some estimates, the number could be even higher.
The Tax Justice Network report estimates that Canada is responsible for $10 billion in losses in other countries. Although Canadians have a lot to lose because of tax evasion, it is important to realize that other countries are also significantly affected by these illegal and fraudulent practices. We should note that the poorest countries tend to suffer more from problems related to tax evasion.
Between April 2014 and March 2020, Canadian courts found 263 people guilty of tax evasion. Is that a lot of people or not many? We do not know. According to the sentencing, these 263 people hid $118 million in federal taxes. Collectively, they were fined $32 million and sentenced to 230 years in prison. That may seem like a lot, but if we compare this to the real figures on tax evasion in Canada, we realize that it is very little. This is no small matter, especially since we have not yet managed to reach the objective of having everyone pay their taxes.
We must continue to take measures to ensure that taxes are paid and that people who unfairly try to avoid their obligations are held accountable. Fraudulent companies established in tax havens have not only avoided paying taxes but have also stolen money from Canadian workers' personal funds. In a recent case, more than $500 million was siphoned from Canada to the Isle of Man, in order to hide that money from creditors. This case involved massive amounts of money, including entire retirement funds, which were lost as a result of fraudulent activities.
Although the executives of the companies involved were found guilty of fraud, the majority of the money they had earned from their illegal activities was never found. The contributors to these pension funds were swindled. Unfortunately, these Canadians and many others were robbed of their savings, and they will never see that money again. We need to implement measures to ensure that fraudsters are never able to exploit Canadians like that again.
The Conservative Party believes that individuals and businesses must pay their fair share of taxes. Corporate tax evasion entails significant economic and social costs. It is unacceptable for the largest companies in the world and the wealthiest individuals to thumb their noses at Canada's tax system or any other system.
Billions of dollars in revenue are being stolen from governments, and inequality is growing. In the end, the biggest victims are consumers, small businesses and the economy in general.
Throughout its history, the Conservative Party of Canada has maintained a strong record when it comes to combatting tax evasion and cracking down on tax havens. In fact, the former Conservative government introduced more than 85 measures to close tax loopholes and improve the fairness and integrity of our system.
For example, budget 2013 introduced changes to the Canada Revenue Agency's compliance programs, which enhanced the effectiveness and integrity of the tax system by targeting tax evaders who were considered high risk. These changes generated over $1.5 billion in additional annual revenue.
To go back a little further, as minister of finance, the late Jim Flaherty announced an initiative to crack down on tax havens in budget 2007. At the time, he said, and I quote:
When multinational corporations use this tax loophole, Canadian taxpayers are indirectly subsidizing their international operations. Our goal is to improve the fairness of our tax system and further reduce taxes for hard-working Canadians while preserving Canada's overall tax advantage...
This anti-tax-haven initiative was launched to prevent multinational corporations from using tax avoidance structures to generate two expense deductions for only one investment. This initiative also sought to appoint an advisory panel of experts to look for ways to generally improve and leverage the fairness and competitiveness of Canada's international tax system.
I also want to remind members that the Conservatives supported a 2016 report from the Standing Committee on Finance on tax evasion and tax loopholes. That report specifically recommended that the Income Tax Act be reviewed and that steps be taken to improve coordination between the Canada Revenue Agency and the Department of Justice in the investigation and prosecution of cases of tax evasion.
The Conservative Party has always stood strong in the fight against tax evasion in order to ensure fairness and prosperity for all Canadians. We will always continue to do so.
We still have a long way to go, though. A 2019 CRA report revealed that 20% of respondents believed the benefits of tax cheating outweighed the risks, 13% felt that tax evasion was no big deal, and 26% did not think they would be caught trying to evade taxes. In other words, it is going to take a lot of work to fight tax evasion. The government needs to send the public a clear message.
Getting back to Motion No. 69, I want to tell my hon. colleague that passing laws on these issues must be done with care and attention. Some parts of his motion call for more thorough consideration. That is for another day, however. Today, the Conservative Party also believes that, during a crisis, the government must ensure that all taxes legally owed by Canadians are duly paid. To do any less would be inappropriate.
I hope my colleagues will soon be able to thoroughly examine these issues during a Standing Committee on Finance study on tax evasion. Our party has an impressive record when it comes to fighting tax evasion. We will always stand up for the best interests of Canadians from coast to coast to coast.
In conclusion, our party will support the motion so that it may be studied in committee. Fighting tax fraud and tax evasion is a tough task because the perpetrators have almost unlimited means to avoid paying the Canadian government what they owe. Parliamentarians have a clear role to play. They have to send a clear message that these practices are illegal, unjust and unfair and will never be tolerated.