Jane Stewart

[Revenue Canada, September 26th, 1996]

Mr. Speaker, I welcomed the report of the auditor general. As an officer of the House he provides me, as a minister, with information, advice and examples of where I can continuously improve the activities and the working of my department.

I note that in this report he has identified many areas where Revenue Canada has evolved and actually made improvements. He has also identified areas where we can continue to improve. I am glad to say that we have tabled action plans in all of those areas which he has accepted and endorsed.

[Family Trusts, September 24th, 1996]

Mr. Speaker, I am afraid what the hon. member does not understand is responsible government.

We were given from the auditor general advice of a decision that was made in 1991 that may not be the kind of decision that he would like. In response to that, this government said that we need a review of this particular aspect of the Income Tax Act, the first one in 25 years, and that has been done.

We do things in a responsible fashion, unlike the opposition which insists on referring to and confusing Canadians about this issue. It is not about family trusts. It is about taxation of migrants. It is not about irresponsible officials. There is no evidence of that. It is not about erosion of the tax base. They have been unable to substantiate that. It is not about the mythology that legislation here does not apply to all Canadians, because it does.

Our government understands that and wants to make sure, as we review the recommendations of the committee, that we do it fairly. We recognize any law that is developed has to apply fairly to all Canadians.

[Family Trusts, September 24th, 1996]

Mr. Speaker, all the issues of this particular case were full and front at the finance committee, a committee of all members of Parliament from across this country. Members of the hon. member's party were there. They had a chance to ask questions of experts, of departmental officials, of the auditor general. I do not understand where this question comes from.

[Family Trusts, September 24th, 1996]

Mr. Speaker, let me be clear on a number of issues.

When I reviewed the report of the auditor general I spoke to him directly and said: "Are you concerned about the integrity of my department?" He said to me: "No, I am not". When I spoke to my deputy minister and asked him if we have a right to be concerned about the integrity of the Department of National Revenue, he said: "No, we do not". When the chair of the finance committee spoke to the auditor general and to the assistant auditor general about this issue he received this response: "There is no evidence of wrongdoing or interference in the decision making process here".

Yesterday the hon. member for Capilano-Howe Sound said: "In spite of serious efforts on my part, in no case could I discover any evidence of wrongdoing".

Mr. Speaker, our government does not engage in any kind of witch hunts. If the hon. member has proof that he has not yet made public, please ask him to do so.

[Family Trusts, September 24th, 1996]

Mr. Speaker, I fail to understand how the opposition can talk about any kind of lack of integrity. We received the response from the auditor general with open arms and then asked the committee, on which the hon. member sits, to review it in its entirety for the first time in 25 years and to make real recommendations not on issues upon which they speculate but on the reality of taxpayer migration and how we should tax that circumstance. We want to have a tax system that is fair and that the Canadian citizenry can have a sense of confidence in.

We have taken those actions. We have received the recommendations. There is a moratorium on further tax rulings. The Minister of Finance is looking at the recommendations that fully point to the policy in specific. As the minister of revenue, I have taken specific actions in terms of improving the manner in which my department operates.

[Family Trusts, September 24th, 1996]

Mr. Speaker, let us recall that this decision happened in 1991 with a former government, not a Liberal government, a Conservative government.

When this was drawn to our attention, we acted very quickly and rapidly. As minister of revenue, I placed a moratorium on any further rulings on taxable Canadian property while the finance committee was doing a very important review, the first review of this piece of the Income Tax Act in 25 years.

As well, upon receiving the report of the finance committee, I have extended the moratorium on any further rulings to do with taxable Canadian property until such time as the Minister of Finance has had an opportunity to review the recommendations and make decisions on making changes that are appropriate and in line with the kind of government that we are.

[Family Trusts, September 24th, 1996]

Mr. Speaker, I will not engage in speculation about what may or may not have happened.

What I would like to do is quote from the report that was received by me and the Minister of Finance: "The committee heard no evidence that these transactions have already cost the Canadian fisc any actual tax revenue". The committee notes that the auditor general and his officials were able to identify any significant new tax avoidance opportunity created for other taxpayers by these rulings".

The auditor general could only speculate about tax laws. It is beyond me why the members opposite are so definite about this. If they have information that they presented to the committee, can they present it to this House?

My understanding is that when asked outside these walls by the press, they were unable to substantiate the claims they are making in this Chamber.

[Family Trusts, September 24th, 1996]

Mr. Speaker, let me begin by reiterating what I said in the House yesterday.

First, the government took very seriously the report of the auditor general and reacted quickly. It sent the report to the finance committee for its full review and for its recommendations. That committee has made recommendations that the Minister of Finance is reviewing and taking very seriously.

As the minister of revenue, I am glad to have received the recommendations which said that my department must act with transparency, make consistent decisions and have full documentation.

I am glad that the committee also noted that we have begun to take action in that regard and that it praises the government for ensuring integrity for the Canadian citizen.

[Family Trusts, September 23rd, 1996]

Mr. Speaker, what I find passing strange about this question is that the Leader of the Opposition and his colleagues were taken to task in the public press in Le Devoir saying: ``How do you substantiate these claims?''

They have not been able to substantiate these claims, yet they come to the House and continue to talk about family trusts when what we are talking about is the tax position of migrants. They continue to talk about the effectiveness of my officials when there was in fact no indications either from the auditor general or the assistant auditor general that there were problems with the integrity of the department.

They continue to talk about the erosion of the tax base when in fact, as the committee reported and made clear, there are no clear examples of the tax base being eroded.

Finally, they perpetuate this myth that this legislation only applicable to rich and wealthy Canadians when in fact it applies to all of us who may for example want to retire to a warmer climate and have a small business or a family farm, which we want to deal with appropriately.

[Family Trusts, September 23rd, 1996]

Mr. Speaker, I am pleased to respond to this question because I have not had the opportunity to thank the members of the finance committee for their fine work on this very difficult file.

In addition to providing the Minister of Finance with recommendations on the issue of taxable Canadian property, they have provided to me as minister of revenue some very direct and specific recommendations when it comes to the administration of my department.

I believe the department should act in a way that is transparent, that our decisions should be consistent and that our documentation must be clear and available to Canadians. Those are things that we have already taken to task and they will ameliorate the deficiencies that were part of the administration under our former government.