Mr. Speaker, I would like to start by thanking the member from the other place, who initiated this bill, for his efforts to bring attention to Canada's tax gap through Bill S-243, and the member for Calgary Rocky Ridge, who sponsored this bill so that we can have a healthy debate on it in this House.
Our government agrees that when the tax gap information is publicly available, it demonstrates a commitment to transparency and helps to identify opportunities to make a fairer tax system for all Canadians. Bill S-243 has put a spotlight on the importance of understanding Canada's tax gap. We thank the senator for that.
The Minister of National Revenue has been very clear about her commitment to fighting tax evasion and to measuring the tax gap, helping to shine a spotlight on the cost of tax evasion.
I find it a bit rich to hear the Conservative opposition members speak in support of the bill. They seem to have completely erased from their memory the Harper government's attacks on the PBO and the utter refusal to consider studying the tax gap. As a matter of fact, I would like to draw the attention of members to what the former vice-chair of the public accounts committee and Conservative MP for Don Valley West, John Carmichael, said in 2014, when talking about the tax gap. He decided to explain to the opposition the mechanics of measuring the tax gap in order “to explain why deriving such an estimate would be overly complex, inefficient, and a total waste of time.” He followed this statement by saying that studying the tax gap was “nonsensical”.
Let us talk about something that is nonsensical: the Conservatives pretending to care about measuring the tax gap and wanting more transparency for Canadians. We have 10 years of Harper's track record on tax evasion to know that studying the tax gap is no priority for that side of the House. Unlike my colleagues on the other side, I am very proud of my government's track record on this issue.
While we agree with the spirit of this bill, due to the requirements and importance of protecting the confidentiality of taxpayers' information, and our concerns related to the proposed legislative vehicle in this bill, our government cannot support it.
This bill asks to change the Parliamentary Budget Officer's model of access to information by compelling the Minister of National Revenue to provide data to the PBO through amendments to the Canada Revenue Agency Act. This act is not the right legislative vehicle to change the PBO's model of access to information. lt would pose concerns for the confidentiality of taxpayer information. The current report to the PBO is issued in a format that protects taxpayers' information. This bill would also create an unnecessary administrative burden for the CRA, as the tax gap is already being reported on.
Allow me to elaborate. To start, Bill S-243 would require the Minister of National Revenue to collect, compile, analyze and abstract statistics on the tax gap every three years and to publish them in the annual report to Parliament of the Canada Revenue Agency. The CRA already publishes research and estimates on various components of the tax gap and has a strong public commitment to continue to do so. Therefore, adding a legislative requirement to collect, compile, analyze and abstract statistics on the tax gap in the CRA's annual departmental results report is unnecessary.
The CRA already has a dedicated team in place to study the tax gap. Through the work of this team, the CRA has published four reports pertaining to the tax gap. Unlike the allegations of the member for Rimouski-Neigette—Témiscouata—Les Basques in his speech, the government took immediate action. In June 2016, the CRA published a conceptual study on tax gap estimation. At the same time, it published the tax gap estimates for the goods and services harmonized sales tax. In June 2017, the CRA published tax gap estimates on domestic reporting and payment non-compliance by individuals. In June 2018, it published a report on tax gap estimates on offshore non-compliance by individuals on the international scale. In June 2019, the CRA will release its fifth report on the tax gap, which will provide information about corporate income tax non-compliance.
These reports are published on the Canada.ca website. They describe the methodology the CRA used to estimate the tax gap. They also provide information on the CRA's compliance efforts to reduce these gaps. Collectively, these reports provide the basis for a more comprehensive tax gap estimate.
Therefore, yes, we agree that the tax gap is important to measure. That is why it is already being done.
I would now like to bring to members' attention the requirement in the bill for the CRA to provide the PBO with the data collected and compiled on the tax gap as well as any additional data the PBO considers relevant to conducting a further analysis of the tax gap.
Members may know that the CRA already provides the PBO with information on this tax gap, and it is in a format that does not compromise taxpayer confidentiality. This bill simply does not amend the appropriate act. In fact, these proposed changes run the risk of creating confusion about the PBO's existing legislated access to information. Indeed, amending a departmental statute such as the Canada Revenue Agency Act would not broaden access to taxpayer data or information. This bill should require significant and consequential amendments to legislation directly related to providing taxpayer data, such as section 241 of the Income Tax Act or section 295 of the Excise Tax Act to make such a change, but it does not.
What this would not change, however, is the CRA's commitment to continue to work closely with the PBO, the Privacy Commissioner and Statistics Canada to determine how best to share the relevant information necessary for the work of the PBO while also protecting the confidentiality of taxpayers' information.
Last, I would like to touch on the stipulation in Bill S-243 that would require the CRA to provide in its departmental results report a detailed list of all convictions for tax evasion, including a separate list for overseas tax evasion. Similar to the commitment to reporting the tax gap, the CRA has already been providing this information at Canada.ca since 2017. The available information identifies individuals, corporations and trusts convicted in the courts for tax evasion or for failing to file income tax returns. It includes convictions that have links to money and assets located offshore.
The CRA's departmental performance report already includes information about convictions. The CRA also offers a service that notifies subscribers about enforcement activities. Given these efforts, it is clear that the CRA already provides significant information about its enforcement activities, just like what is being requested in Bill S-243.
Once again, I thank the member from the other place who initiated this bill for his commitment to ensuring that Canadians have greater access to information about non-compliance. Our government will continue to report on the tax gap to ensure that taxpayer information is and stays confidential and will continue to remain transparent in our fight against tax evasion. That is what we have been doing for the past three and a half years and that is what we will continue to do.