Diane Lebouthillier

[Canada Revenue Agency, September 22nd, 2016]

Mr. Speaker, our government is working with our international partners to address this threat, and that co-operation will continue.

We will continue to gather and share more and more data. The Canada Revenue Agency is processing the information coming out of the Bahamas in co-operation with its partners and through court orders, as needed.

[Canada Revenue Agency, September 22nd, 2016]

Mr. Speaker, our government is committed to fighting tax evasion and aggressive tax avoidance and making sure that we have a system that is fair for all Canadians.

Let me be very clear. Most middle-class Canadians pay their fair share of taxes, but a few wealthy individuals are not doing the same, and that must stop. That is why our government invested $444 million to give the CRA the best tools to combat tax evasion.

[Questions on the Order Paper, September 19th, 2016]

Mr. Speaker, for the period November 4, 2015 to June 10, 2016, the CRA is unable to provide a response to the question as the administrative reporting system utilized does not currently include a specific category for marijuana dispensaries.

With regard to goods and services tax/harmonized sales tax, GST/HST, administration and income tax administration, the current reporting requirements that define the primary business activities of a given corporation are based on the North American Industry Classification System (NAICS) Canada 2012 industry classification standard. These NAICS standards are jointly developed and maintained by Statistics Canada and its counterparts in the United States and Mexico, and do not yet include a unique category for marijuana dispensaries. Further information on the NAICS is available at www.statcan.gc.ca/eng/subjects/standard/naics/2012/index.

Nevertheless, GST/HST applies on all taxable supplies made by GST/HST registrants. A taxpayer is generally required to register if the value of their supplies or services exceeds $30,000 per year. From a GST/HST perspective, marijuana is considered a taxable supply and would be subject to tax if made by a GST/HST registrant. All dispensaries/shops that are registered for GST/HST are required to collect and remit the GST/HST on the supply of marijuana. Additionally, from an income tax perspective, income earned from a marijuana dispensary or shop is taxable, and should be reported as business income. According to the Income Tax Act and to the Excise Tax Act, all income, from either legal or illegal activities, is taxable and is to be reported. Taxpayers and GST/HST registrants suspected of deriving income from illegal activities are risk assessed and appropriate compliance actions are taken by the CRA, working closely with the Royal Canadian Mounted Police, provincial and local police, and other law enforcement agencies.

[Canada Revenue Agency, June 15th, 2016]

Mr. Speaker, the agency is currently before the courts to obtain the list of participants in KPMG's schemes. I would caution my colleague to be careful.

Budget 2016 provides the agency with the means to combat tax evasion and aggressive tax avoidance. As Minister of National Revenue, that is my priority and that of my government. All Canadians must respect their obligations. That is what we are working toward.

[Canada Revenue Agency, June 15th, 2016]

Mr. Speaker, the agency is investigating taxpayers who participated in KPMG's schemes. Our massive investment will help us stop the people who promote such schemes.

As my colleague knows, complex cases before the courts can encounter delays, particularly to allow time to produce evidence. The agency is doing everything it can to ensure that the case is dealt with in a timely manner.

Our government is committed to preserving the integrity of the tax system. I cannot say it enough, but the net is tightening.

[Questions on the Order Paper, June 10th, 2016]

Mr. Speaker, the disability tax credit, DTC, is a non-refundable tax credit that helps persons with disabilities, or their supporting persons, reduce the amount of income tax they may have to pay. To qualify, an individual must have a severe and prolonged impairment in physical or mental functions, as defined in the Income Tax Act and as certified by a medical practitioner.

More detailed information is available in the CRA publication Tax measures for persons with disabilities - Disability-Related Information 2015, RC4064(E) Rev. 15, which is available on the CRA website at www.cra-arc.gc.ca/E/pub/tg/rc4064/rc4064-15e.pdf.

With regard to parts (a) and (b), eligibility for the disability tax credit is not based on a medical condition or diagnosis, rather on the effects of the impairment on a person’s ability to perform the basic activities or daily living, or whether the person is blind or requires life-sustaining therapy. For this reason, the CRA does not collect this information.

With regard to part (c), the CRA determines eligibility for the DTC based on the criteria set out in section 118.3 of the Income Tax Act. These criteria are not based on a medical condition or diagnosis, but rather on the effects of the impairment on a person’s ability to perform the basic activities of daily living, or whether the person is blind or requires life-sustaining therapy.

To be eligible, a medical practitioner must certify that a person has a severe and prolonged impairment in physical or mental functions and describe its effects on one of the basic activities of daily living, or provide information indicating the individual is blind or meets the criteria for life-sustaining therapy.

Applications for the DTC are reviewed on a case-by-case basis. A person with the same medical condition as another may not experience the same effects. In addition, there may be other factors that contribute to the severity of impairment, such as other medical conditions or circumstances.

With regard to part (d), the information being requested, by diagnosis, is not captured by the CRA as there is no requirement to do so under the ITA.

With regard to part (e), the average amount for expenses related to phenylketonuria is not captured by the CRA.

With regard to part (f), CRA assessors receive extensive training to make eligibility determinations in accordance with the legislation set out in section 118.3 of the Income Tax Act and by consulting with registered nurses, or RNs, employed by the CRA, who serve as resources for all of the tax centres. When required, the RNs will also contact the medical practitioners who have certified the forms for additional information.

CRA assessors all refer to the procedures manual, and quality reviews of eligibility determinations are conducted on a continuous basis to ensure consistency in the administration of the DTC program.

[Canada Revenue Agency, June 8th, 2016]

Mr. Speaker, our government firmly believes that all Canadians need to pay their fair share. The CRA is currently investigating the taxpayers identified in the KPMG schemes.

This matter is before the courts, so I would caution my colleague. I want to reassure all Canadians that no one can shirk their obligations.

[Canada Revenue Agency, June 7th, 2016]

Mr. Speaker, I would remind my colleague opposite that the KPMG schemes were denounced by the Canada Revenue Agency.

Our government is committed to fighting tax evasion and aggressive tax avoidance. We are keeping this promise through our historic $444-million investment.

We are committed to developing a fairer tax system for Canadians. That is what we promised we would do, and that is what we are doing.

[Canada Revenue Agency, June 7th, 2016]

Mr. Speaker, middle-class Canadians pay their share of taxes, but some wealthy individuals are avoiding paying their fair share. That is unacceptable and it must change.

CRA is investigating the taxpayers identified in the KPMG schemes, and the massive investment in our latest budget will help stop the organizations that create and promote such schemes for the rich.

This matter is before the courts, so I would caution the member. I want to reassure all Canadians that no one can shirk their obligations.

[Canada Revenue Agency, May 16th, 2016]

Mr. Speaker, our government recognizes how important it is to combat tax evasion and international tax avoidance, as indicated in our election platform and my mandate letter.

Regarding the Panama papers in particular, I instructed my officials to get the list. We now have it. This is a problem of global proportions. We are taking a close look at all the data we have today and will do the same with the data still to come.