Francesco Sorbara

[The Budget, March 23rd, 2017]

Mr. Speaker, with regard to the tax loopholes or tax advantages that people or organizations may wish to gain, we have again committed substantial funds to the Canada Revenue Agency. I believe it is over $500 million, so we can ensure that all Canadians, all organizations, are paying their fair share of taxes. We will continue on that track and we are committed to that track.

We also need to ensure that we have a competitive tax system. Reviewing tax expenditures and reviewing the tax code is something that we as a government should continuously be doing, and we are doing that. We need to ensure that entrepreneurs that take risks, that move forward, that put capital forward, and that put people to work are rewarded, but we also need to ensure that everyone is paying their fair share.

[The Budget, March 23rd, 2017]

Mr. Speaker, I will take a holistic approach and look at all the pieces we have put in place to support families across Canada. There is the introduction of the Canada child benefit, and the investment of funds for child care spaces across Canada. We need to sit down with our provincial counterparts and ensure that the money is being delivered for child care, which is very important. Also, there is our Canada summer jobs strategy for youth, and a number of programs we have put forward for innovation. These will all make a difference not only for our economy but, more importantly, for Canadian families.

[The Budget, March 23rd, 2017]

Mr. Speaker, it gives me great pleasure today to rise to speak to budget 2017. This budget is the next step in our government's focus to ensure a brighter future for all Canadians with what I call a three-pronged approach: a focus on innovation, infrastructure, and skills training. This budget deals with the global realities and certainties that Canada faces, but meets head on the exciting opportunities that we as a nation must grab hold of, and charts a course in which Canadians can be proud and confident.

As someone who spent over two decades working in the global financial markets of New York City, London, and Toronto, I can state with expertise that budget 2017 is fiscally responsible and undertakes strategic investments that will strengthen and grow Canada's middle class, while taking the responsible approach to fiscal management, cemented in a stable and declining debt-to-GDP ratio. Canada's fiscal strength rests on its load-debt burden, and protecting this source of strength is of paramount importance.

On a personal level, as a father of two young daughters, Natalia and Eliana, this budget is not just a plan for the future of this generation but of successive generations. I know budget 2017 will make a positive difference in the lives of the residents I have the privilege of serving in the dynamic and growing riding of Vaughan—Woodbridge.

Earlier this year, I announced a multi-million dollar investment in a new inter-regional transit terminal in the city of Vaughan, which will connect with the Toronto-York Spadina subway extension project, due to be up and running in later 2017. This investment by our government, in partnership with the other levels of government, will benefit not only my community but all communities in York Region and the GTA. As I like to say, a better place to live, learn, and work.

We have already begun to see the green shoots in the Canadian economy, including a labour market characterized by having the strongest job growth since 2012, spending by consumers supported by gains in disposable income and the Canada child benefit, and a robust housing market, that are attributed to budget 2016. The transformational Canada child benefit will provide over $20 billion of direct tax-free payments to Canadian families this year.

Strategic investments in infrastructure, the lowering of taxes for over nine million middle-class Canadians, and pursuing trade policies that saw Canada complete a progressive and standard-setting agreement with the European Union are all providing a solid foundation for a brighter economic future for all Canadians for years to come.

Let us examine the specific measures in budget 2017 that focus on what I called our three-pronged approach: innovation, infrastructure, and skills training. In our fall 2016 economic statement, the government announced that it would invest $81 billion in infrastructure for the next 11 years. I am proud to announce that within budget 2017, we see those details. This will include nearly $21 billion to support social infrastructure in Canadian communities, including $7 billion over 10 years to support and create more high-quality, affordable child care spaces across Canada.

I wish to highlight this specific investment in Canadian families with a quote from Marni Flaherty, chair of the Canadian Child Care Federation, as follows:

We are pleased that Canada’s federal government has taken this significant first step in committing to a multi-year funding plan. Moving forward, creating fundamental changes in how Canada supports the middle class – and all families – in accessing high quality and affordable child care will require increased funding, planning and coordination.

Over $11 billion will be invested over 11 years for an inclusive national housing strategy. There will be $1.8 billion invested over 10 years for cultural and recreational infrastructure. An additional $10.1 billion will be invested in trade and transportation projects from coast to coast to coast. We need to get our goods and services to market to export and we need to break down bottlenecks.

I applaud the strategic investment of $152 million to provide consistent and effective security screening of travellers and workers. Air Canada commented as follows:

Air Canada today said it welcomes funding in the Federal Budget that will improve airport security screening processes at Canadian airports. This will benefit travellers by reducing wait times and should enhance the overall travel experience.

Airports are key economic drivers with, for example, in Toronto, GTAA, a key economic cluster as the second-largest employment zone in the country.

Canada also faces a rapidly changing global economy and for us to succeed, we must foster citizens to be global leaders in their fields and have our creative and entrepreneurial citizens propel the economy forward. Our plan on innovation and skills training meets this challenge and will position our citizens and companies to succeed not only at home but also on the global stage.

Budget 2017 contains a number of measures on innovation. We all know that Canada is positioned for innovation with the most highly skilled and educated workforce and one of the best places for openness in trade and investment.

Briefly, there are three I wish to highlight, which will help companies scale up and identify those with the greatest potential. These measures include establishing Innovation Canada, a new single window at Innovation, Science and Economic Development Canada for business innovation programming to help coordinate and simplify innovation programs. Second, $950 million will be invested over five years to support business-led innovation superclusters that have the greatest potential to accelerate economic growth, and up to $400 million will be invested in the Business Development Bank for a new venture capital catalyst initiative.

I am proud of our commitment and the compassion we demonstrated for Canadian families. Our commitment to Canadian families is steadfast. We understand that Canadians face a job market that requires lifelong learning, and we are there to help. As an old proverb states, if you give people a fish, you feed them for a day; but if you teach people to fish, you feed them for a lifetime.

Our government will invest $2.7 billion over six years to help more unemployed and underemployed Canadians access the training and employment supports they need to find and keep good jobs. Additionally, $225 million will be invested over four years to identify and fill skills gaps in the economy, to help Canadians be best prepared for the new economy.

Our budget follows through on a promise to parents. Our budget will let parents, at their choice, extend their parental leave for up to 18 months versus the 12 months currently. This is important as it will provide enhanced flexibility to families, particularly in areas where there is a current shortage of child care spaces or where there is a prohibitive cost for child care spaces. As we all know, the gap between 12 months and 18 months in child care is great, because a lot of child care centres do not offer the service for kids between those ages, or younger.

Additionally, there is a new employment insurance caregiving benefit of up to 15 weeks to cover situations where individuals are providing care to an adult family member. As well, expectant mothers will be allowed to claim EI maternity benefits of up to 12 weeks before their due date versus the current standard of eight weeks. Taken together, these measures are smart investments to assist Canadian families.

A few other measures that I believe are noteworthy include an initiative for better data collection in the Canadian housing market, with a $39.9 million investment to establish a housing statistics framework to address housing data gaps identified by the federal, provincial, and municipal housing working group. Our government's actions to date on the housing market are to ensure a sound housing market for all Canadians. Better data collection will strengthen our ability to ensure that home ownership remains robust and that our housing market remains sound.

Finally, a measure on which I hope to comment in the future is the introduction of the new Canada caregiver credit, which will vastly simplify the current system. It will replace the caregiver credit, the infirm dependent credit, and the family caregiver tax credit. With a single new tax credit, we will be better able to support those who need it the most. It will apply to caregivers, whether or not they live with their family member, and help families with caregiving responsibilities.

It is this type of measure that reflects the values of this government, and it will make a real and positive difference in the lives of Canadian families. It makes me proud to be part of a government that introduced budget 2017 with those types of principles and values.

[Business of Supply, March 21st, 2017]

Mr. Speaker, our government is a government that consults and our government is a government that listens. That is exactly what we have done with municipalities. We have sat down with them and we have listened to them. They know best what their needs are. That is what is our government is doing: listening to them and responding, and ensuring that they have the resources available to continue to build up their cities so their citizens can get home earlier at night. They can take their kids to soccer and they can get to work faster.

That is what we will continue to do. We will continue to partner with all levels of government, whether it is provincial, municipal, and, in some areas, regional.

[Business of Supply, March 21st, 2017]

Mr. Speaker, our mandate is to invest in Canadians. Whether it is through the Canada child benefit, whether it is through the increased guaranteed income supplement, whether it is through middle-class tax cuts, whether it is through asking the 1% to pay for a bit more, our mandate is to help hard-working middle-class Canadians and Canadians who want to join the middle class.

[Business of Supply, March 21st, 2017]

Mr. Speaker, our infrastructure program that we are ramping up and announcing projects for with the $180 billion over 12 years includes the York-Spadina subway extension in the City of Vaughan, for which I had the pleasure of announcing a $30-million inter-regional bus terminal. It is under construction, with shovels in the ground. I am proud to say that.

I will say this on the infrastructure bank. If we look around the world, we see the liquidity that is available from private investors to invest in a country like Canada. It is an opportunity for us to leverage those private capital dollars that are available to accelerate infrastructure and to build Canada. We have an infrastructure gap and we are addressing it.

[Business of Supply, March 21st, 2017]

Mr. Speaker, I want to say how pleased I am to speak in the House today on what our government has done and is planning to do for infrastructure in this country.

The Government of Canada knows that infrastructure provides Canadians with opportunities to get an education, to volunteer, to grow a business, to raise a family in a safe community. Infrastructure is the foundation of better communities. It strengthens our economy, and a strong economy starts with a strong middle class.

Investing in infrastructure creates good, well-paying jobs that help the middle class grow and prosper. By making it easier to move people and products, well-planned infrastructure can deliver sustained economic growth for years to come.

The Government of Canada is more than doubling infrastructure spending. We are investing more than $180 billion over 12 years to support public transit, green and social infrastructure, and trade and transportation in rural and northern communities. We have already started by addressing our most pressing infrastructure deficits, making repairs to our aging pipes and roads, building and refurbishing affordable housing, and adapting buses to ensure seniors and individuals with disabilities have access to safe and reliable transportation.

Our plan is well under way in two key programs that I am proud of: the clean water and waste water fund and the public transit infrastructure fund. They are already making a difference in Canada and Canadian lives. More importantly, more than1,100 projects have already been approved under these programs, and more than half of those projects are already under way. It is because of this progress that residents in many communities in Newfoundland and Labrador will experience fewer water shut-off requests and school closures caused by deteriorated service lines.

Commuters in Surrey, B.C., will get to spend more time with their families and enjoy a cleaner environment as a result of the expansion of key transit lines. These expansions will reduce travel times and reduce greenhouse gas emissions, something we all must applaud. In the north, residents of Iqaluit will benefit from a new secondary waste water treatment plant that will ensure cleaner water flows back into the environment.

Those are just a few examples of the outcomes we will see across the country.

With more than $10 billion announced in budget 2016, infrastructure projects across the country are already making a huge difference in communities. These projects include nearly 550 public transit projects, including the expansion of more than 80 transit systems that will make it easier to get to work on time, reduce pollution, and ensure that public transportation is there when Canadians need it; more than 700 projects under the clean water and waste water fund that will improve access to clean drinking water and reduce pollution in our lakes and rivers; more than 1,000 projects to retrofit or renovate social housing to repair more than 48,000 social housing units, which will make housing more affordable for families and more energy efficient to live in; and more than 950 housing projects in indigenous communities, including 125 projects aimed at building and improving schools and 200 water and waste water projects.

We have also worked closely with partners to expand eligibility requirements and accelerate the funding being delivered under such legacy programs as the new Building Canada fund and to quickly move forward with new programs to support projects across the country from coast to coast to coast. These improvements respond to the feedback we have received from communities and stakeholders across the country. Broadly, these changes created greater flexibility for highway and road projects across Canada and expanded funding categories to include culture, recreation, tourism, civic assets, and passenger ferries. We are listening to stakeholders and responding.

Of these legacy programs, $800 million was committed in the last year to new projects that are moving forward. The remaining $30 million is being transferred directly into the federal gas tax fund so that Canadian communities can have immediate access to those funds.

This approach is generating results. For example, in Newfoundland and Labrador 20 projects were approved in the last year, whereas no projects had been approved in the previous three years under these legacy programs. As well, just last week three municipalities in Quebec received more than $18.3 million in federal funding for much-needed recreational facilities that will greatly enhance the quality of life for residents. Without expanded program parameters, these important projects would not have been funded.

We are also following through on our commitment to find innovative ways to fund infrastructure in Canada by announcing the creation of the Canada infrastructure bank. The bank will allow the federal government to “crowd in” private sector investment in infrastructure through loans, loan guarantees, and equity participation. It will create more options and opportunities for provinces, territories, and municipalities across the country to undertake transformative infrastructure projects, such as major public transit in our largest cities, energy transmission corridors, major corridor projects, and much more.

The bank's funds are over and above the commitment we made to double infrastructure funding to approximately $180 billion over 12 years. By using private capital to build those new projects, public money is freed up to build more public infrastructure. Most importantly, it offers our funding partners a new tool to help meet their pressing infrastructure needs.

The Government of Canada recognizes that in order to compete globally, our communities need to be at their absolute best. That is why we are moving forward on the Smart Cities Challenge, which will challenge communities across Canada to develop integrated, innovative, evidence-based solutions to improve quality of life for their residents.

The challenge draws from similar competitions around the world and aims to accelerate the planning and adoption of innovative urban infrastructure. It will be an opportunity for communities to innovate, take risks, and think outside the box. Ultimately, the challenge is another tool that will help support long-term transformative changes across Canada.

In conclusion, the Government of Canada remains committed to building a fairer, more inclusive country that reflects the priorities of Canadians and reflects the priorities of the residents of my riding of Vaughan—Woodbridge. The government understands that change must result in the kind of growth that benefits all Canadians at every stage of their lives—young Canadians, newcomers to Canada, working Canadians, seniors, veterans, and indigenous peoples.

We have made significant progress over the last year investing in projects that build healthier, more liveable communities, with cleaner air and water, and better care for our kids and grandkids. Budget 2017 is the next step in the Government of Canada's ambitious plan to invest in Canada's future, putting Canada's talented, skilled, and creative people at the heart of a more innovative future economy.

[Business of Supply, March 7th, 2017]

Madam Speaker, if we look at the findings to date from the CRA, in 2015-16 alone, over 120,000 audits resulted in more than $12 billion in additional taxes assessed as well as penalties and interest. Our government is committed to cracking down on aggressive tax avoidance and tax evasion.

I would like to add that I do understand the member's comments about going after small business or middle-class Canadians. I do share that concern, and we should focus on larger participants who have the capability of tax evasion and tax avoidance.

[Business of Supply, March 7th, 2017]

Madam Speaker, I have the privilege of sitting on the Standing Committee on Finance. I was the MP who brought forward the motion for us to study the goings-on with respect to tax evasion and tax avoidance in relation to the Isle of Man. Therefore, this is an issue that is of paramount concern for us, for me and our government, to ensure that all organizations and individuals are paying their fair share of taxes, that our social programs are being supported and fully funded, and that all Canadians contribute to our economy and the betterment of our society.

What I would like to note is the number of actions that we in our government have undertaken to combat tax avoidance and tax evasion. Over the weekend, the Minister of National Revenue put out a release, which I think everyone should take a look at. When we look at the CRA's domestic offshore audit activities, we see they put our government on a pace to raise assessments by over $13 billion this year. We have increased the number of auditors reviewing offshore tax schemes, promoters, and large multinational corporations. In our budget, we put in place a plan to invest $444 million over five years for increased tax evasion and tax avoidance monitoring.

[Business of Supply, March 7th, 2017]

Madam Speaker, I am pleased to speak to the important issue of tax evasion and aggressive tax avoidance brought forward by my colleague the member for Rosemont—La Petite-Patrie. I will be splitting my time this morning with my friend and colleague the member for Brampton East.

First, let me state unequivocally that the Government of Canada is committed to combatting international tax evasion and aggressive tax avoidance. We believe every Canadian must pay his or her fair share of taxes, period.

Last year's budget introduced a number of measures to combat tax evasion and avoidance and to improve compliance, actions that will help ensure that everyone does their share and pays their fair share.

Furthermore, they support the objective of an economy that works for the middle class and not those who seek to skirt our tax laws or otherwise gain an unfair advantage. Tax evasion and aggressive tax avoidance by individuals and businesses have a fiscal cost to governments and to taxpayers. They reduce the fairness and integrity of the tax system. They shift the financial burden onto Canada's middle class, while often benefiting those who may be more than capable of paying their own fair share.

This is why our government took decisive action through budget 2016 to crack down on tax evasion and to combat tax avoidance. Budget 2016 invested $444.4 million over five years to enhance the Canada Revenue Agency's assessment capabilities through the hiring of more auditors and specialists who will have the resources needed to undertake more expansive and comprehensive investigative work.

These investments to support CRA's efforts to crack down on tax evasion and combat tax avoidance are expected to generate approximately $2.6 billion in additional taxes over five years.

With the benefit of these new resources in the last year, CRA has begun reviewing all taxpayers and certain segments of the population identified as high risk. The agency is using external data and publicly available information to maximize its effort to identify non-compliance.

The CRA has also toughened its response to leaked lists of taxpayers with offshore holdings. For example, with the Panama papers, the CRA has more than 76 taxpayer audits under way, and extensive data is currently being reviewed. The CRA has also executed search warrants, and several criminal investigations involving both participants and facilitators are ongoing.

However, we also recognize that assessing tax revenues alone is not enough. Once we do an assessment we need to be able to collect the unpaid amounts and that is why budget 2016 invested an additional $351.6 million over five years to improve CRA's ability to collect these outstanding tax debts. This is revenue we will be investing to help strengthen and grow our middle class.

Indeed, creating an economy that works for the middle class and those working hard to join it is what guided our actions right from the start of our mandate. As one of our first actions in December 2016, we introduced the middle-class tax cut. Nearly nine million Canadians are now benefiting from this measure. Single individuals who benefit are seeing an average tax reduction of $330 every year, and couples who benefit are seeing an average tax reduction of $540 every year.

Also with budget 2016, we put more money directly into the pockets of low- and middle-income families through the Canada child benefit, a more generous, tax-free, and better targeted benefit that is lifting hundreds of thousands of children out of poverty. The CCB is giving nine out of 10 families with children more money every month to spend on everything from school supplies, to school clothes, to sports equipment. Families benefiting have seen an average increase in child benefits of almost $2,300 during the 2016-17 benefit year.

These actions and others are helping to strengthen and grow the middle class and our economy. However, we also know that more needs to be done. We need to make sure that our tax system functions as intended and that it is fair, effective, and equitable.

We will continue to take legislative and other actions on both the international and domestic fronts to ensure that Canada's tax system is fair and works for the middle class.

Globally, Canada has been a very active participant in efforts to address international tax evasion and avoidance. Canada is an active member of the Global Forum on Transparency and Exchange of Information for Tax Purposes, which was established to ensure that high standards of transparency and exchange of information between jurisdictions for tax purposes are in place around the world.

Canada has also developed an extensive network of bilateral tax treaties and tax information exchange agreements, and it is party to the multilateral Convention on Mutual Administrative Assistance in Tax Matters, which provides for exchange of tax information. This allows the CRA to obtain information from foreign tax authorities on Canadian taxpayers' investments and activities in foreign countries that is relevant for Canadian tax purposes.

To build on this information sharing, Canada recently adopted legislation to implement the common reporting standard developed by the OECD and endorsed by G20 leaders. Canada is one of more than 100 jurisdictions worldwide that have similarly committed to implement this reporting standard, which provides a framework under which the tax authority in a country will share information, securely and automatically, on the financial accounts held by non-residents in that country with the tax authority of the country in which the account holder is resident. This House has recently passed legislation to implement this standard, starting on July 1 of this taxation year.

Canada has also been actively engaged in a second multilateral initiative aimed at addressing base erosion and profit shifting, commonly known as BEPS. This refers to certain tax planning arrangements undertaken by multinationals, which often through legal means exploit the interaction between the tax rules of different countries in order to minimize taxes. Canada has already implemented a number of the BEPS project recommendations, and going forward, the government will continue to work with the international community to ensure a coherent and consistent response to BEPS filing going forward.

Canada supports the important goal of improving corporate transparency worldwide. The Government of Canada has agreed to international standards developed by the Financial Action Task Force and the Global Forum on Transparency and Exchange of Information for Tax Purposes in support of corporate transparency. The proceeds of crime, money laundering, and terrorist financing regulations include requirements for financial institutions regarding the collection of information on beneficial owners of corporations.

Taken together, all of these actions are consistent with the basic principles of fairness that define us as a nation. Canadians should have confidence that their tax system has integrity. This is what tax fairness is all about. By taking action to prevent tax evasion and close tax loopholes, we will improve the fairness and integrity of the tax system, and contribute to fiscal sustainability both at home and abroad. We believe that our plan is the right one to improve the integrity of Canada's tax system.