Diane Lebouthillier

[Questions on the Order Paper, January 30th, 2017]

Mr. Speaker, please note that as of April 2014, through the creation of the offshore compliance division, the CRA began to track offshore related audits that resulted in a negotiated settlement. For this reason, the CRA is only able to provide data from that date. Information prior to April 2014 is not available in the manner requested (i.e., by year, since January 1, 2006).

The CRA strives for effective and efficient resolution of audit issues, on the basis of facts, and only settles files on a principled basis in accordance with legislation that it administers (the Income Tax Act, Excise Tax Act, and other fiscal legislation). Reaching an agreement with the taxpayer has numerous potential benefits, such as the reduction of litigation risk and costs, taxpayer agreement to the taxability of the income earned, consistency in resolution of complex issues, and the commitment by the taxpayer to pay the liability within a specific time frame.

With regard to part (a)(i), since 2014, 34 of the over 293 tax audits of offshore non-compliance resulted in a settlement.

With regard to part (a)(ii), these 34 audit cases settled resulted in over $6 million in federal taxes assessed and $3.8 million in penalties. In total, the 293 audits yielded $155 million in federal tax and penalties assessed.

With regard to part (a)(iii), the CRA does not track the interest charged from the negotiated settlements noted above.

[Questions on the Order Paper, January 30th, 2017]

Mr. Speaker, with regard to (a), the international, large business and investigations branch, ILBIB, was formerly part of the larger compliance programs branch, CPB. ILBIB was created in April 2016 to provide more focus on international tax audit, aggressive tax planning, criminal investigations and the development of strategies to combat international tax evasion and aggressive tax avoidance. As of June 29, 2016, the most recent date for which current information is available, ILBIB had 2,654 full time equivalents FTEs.

With regard to (b), ILBIB has an annual operating budget of $271,283,229, which includes funding from budget 2016 related to the cracking down on tax evasion and tax avoidance commitment.

With regard to (c), since April 2016, there have been 15,602 active audits in ILBIB, of which 5,184 audits were completed as of November 25, 2016, the most recent date for which current information is available. Please note that many of the completed and active files were created in the former CPB, prior to the creation of ILBIB.

With regard to (d), while the CRA is able to provide the number of new criminal investigations opened since April 1, 2016, it cannot do so in the manner requested (i.e., with respect to the data provided in part (c)). Since April 1, 2016, 56 new criminal investigations have been opened. Criminal investigations can be complex and require months or years to complete. This will be dependent on the complexity of the case, the number of individuals involved, the availability of information or evidence, cooperation or lack thereof of witnesses or the accused, and the various legal tools that may need to be employed to gather sufficient evidence to establish a case beyond reasonable doubt.

None of the 56 have been referred to the Public Prosecution Service of Canada, PPSC, in the nine months of the scope of the question. Generally speaking, whether or not a file is accepted for criminal investigation and possible subsequent prosecution is based on many factors, including the evidence to establish that a crime has been committed and the likelihood of securing a conviction if charges are laid. The criminal investigations program investigates suspected cases of tax evasion, fraud, and other serious violations of tax laws and recommends to the PPSC cases for possible prosecution where an investigation has been carried out and where evidence accumulated indicates guilt beyond a reasonable doubt.

With regard to (e) and (f), for the reasons outlined in part (d), since April 1, 2016, no files are before the courts and, consequently, there have been no convictions.

[Canada Revenue Agency, December 14th, 2016]

Mr. Speaker, the situation my colleague raised is troubling.

I discussed this matter today with my colleague, the Minister of Public Services and Procurement. It is important to note that Public Services and Procurement Canada is responsible for the agency's real estate and leasing needs. The agency does not deal directly with the owners of the buildings it leases.

However, I can assure the House that our government will continue to take action to ensure that all Canadians pay their fair share. That is at the core of my mandate, and I will not give up.

[Canada Revenue Agency, November 30th, 2016]

Mr. Speaker, I would like to thank the Auditor General for his report and I would like to say that the Canada Revenue Agency accepts the eight recommendations he proposed.

Canadians must have access to outstanding service when they contact the agency. That is a key point in my mandate letter. I made a commitment to do everything possible to provide outstanding service.

It is important to point out that an action plan to reduce processing times for objections is already being drawn up. It will be completed in early 2017.

[Canada Revenue Agency, November 29th, 2016]

Mr. Speaker, I would like to thank my colleague from Mississauga—Lakeshore for his important question.

Our government is more committed than ever to combatting tax evasion because we understand that all Canadians need to pay their fair share of taxes.

The $444-million investment has made it possible to implement a jurisdiction-based approach. We are examining four jurisdictions per year. We started with the Isle of Man. We are now working on Guernsey. We are looking at transactions of over $7 billion. That is just the beginning. Other jurisdictions will follow.

[Public Services and Procurement, November 21st, 2016]

Mr. Speaker, my colleague across the aisle is well aware that there have been meetings with the members concerned. I would suggest that he talk to his colleague, the member for Jonquière, who congratulated us on what we did.

[Canada Revenue Agency, November 21st, 2016]

Mr. Speaker, today's announcement confirms that the Canada Revenue Agency will hire more staff in addition to ensuring a strong regional presence across Canada. We will continue to work with unions and local stakeholders and assist them through this transition.

Canadians expect the agency to make informed decisions and good investments in order to provide world-class services.

[Canada Revenue Agency, November 21st, 2016]

Mr. Speaker, our government has stopped reducing staff at regional tax centres.

We have reorganized our operations to ensure that we provide outstanding service and well-paid jobs for the middle class. Canadians are using online services in ever greater numbers, and we understand that the Canada Revenue Agency must modernize how it meets their needs.

Our government is committed to ensuring that Canadians across the country have access to the best possible services when they contact the Canada Revenue Agency.

[Canada Revenue Agency, October 31st, 2016]

Mr. Speaker, middle-class Canadians who pay their fair share have every right to be upset when wealthy taxpayers use sophisticated schemes to avoid their tax obligations.

The Government of Canada invested an unprecedented $444 million to counter what is happening offshore. We have agreements in place, our officials are working on this, and we are going to keep our promises.

[Canada Revenue Agency, October 28th, 2016]

Madam Speaker, middle-class Canadians have a right to be upset about the fact that some companies are not paying their fair share of taxes and wealthy taxpayers are evading their obligations. We have invested a historic amount of $444 million precisely to continue putting all the necessary measures in place to ensure that people pay their fair share of taxes and that Canadians are happy with their government.