Mr. Speaker, before I begin, I wish to point out that my constituency includes Nunavik, not Nunavut. Nunavut is a territory, while Nunavik is a region of the province of Quebec.
On November 22, I put a question to the Minister of National Revenue. For the benefit of this debate, I will repeat that question:
Mr. Speaker, the Canada Revenue Agency has audited many restaurants in Quebec and sent out notices of assessment based on an average tipping rate of 16% of the bill. That rate was set arbitrarily on the basis of incomplete information.
How can the minister let the agency take such inaccurate shortcuts when setting assessment rates, knowing full well that such methods produce imaginary rates that are completely out of touch with these workers' reality?
Now, here are the words used by the minister to avoid answering my question:
Mr. Speaker, let me assure the House that each tax case is assessed against the particular conditions that apply to it.
However, I cannot talk about a particular tax case in the House because of the Income Tax Act.
The minister ignored the matter by hiding behind the appearance of confidentiality. Nevertheless, it was evident in the question I asked that the method used by the Canada Revenue Agency was the issue. To our knowledge, this practice is applied in a few dozen establishments and definitely affects more than one hundred employees. Therefore, we are not dealing with a specific tax case, as the minister would like to believe, but rather with many similar cases.
I am not questioning the minister about a specific case, but about the legitimacy of the Canada Revenue Agency's use of a particular calculation method. The Agency uses a mathematical formula to prepare notices of assessment based on partial records and established solely with credit card payments, without taking into account bills paid in cash. I would remind you that these records are incomplete and only partial. In addition, they do not reflect the reality.
The House should know that not only does this broadly used mathematical formula produce inaccurate notices of assessment, but it is also violating the spirit of the law, as the Income Tax Act applies to individuals for the purpose of calculating personal income tax. Its title is self-explanatory. In this case, however, the Canada Revenue Agency not only fabricates artificially inflated notices of assessment, but it also applies average tipping per restaurant figures to an entire class of workers. An employee's income should not be calculated based on an average, because we are no longer talking about personal income tax then, but rather about a base tax which, incidentally, has not been changed, which makes this whole approach illegal under the current Income Tax Act.
I want to point out to the House that the only province with taxation legislation concerning tip workers is Quebec. The only province where minimum wage for tip workers is lower than for other workers is Quebec.
Could the minister tell us whether he plans, as a first step, to stay any proceedings underway against all the tip workers who have been issued notices of assessment calculated using incomplete procedures, on the basis of incomplete information, and based on illegal methods?
As a second step, and before moving to ensure fair treatment for vulnerable employees, does the minister intend to legislate to put in place a fair and just taxation system while at the same time taking into account the reality that these workers are facing?