Madam Speaker, I am pleased to provide an update on what Canada has been doing with respect to tax fairness. This is certainly one of our government's most significant responsibilities, and Canadians legitimately expect us to take effective action on this file.

The government did not wait long to act. In December 2015, it introduced a tax cut to benefit the middle class by reducing the tax rate for the second personal income tax bracket. On average, for a single person, that amounts to $330 per year, and for a couple, $540. Close to nine million Canadians have already begun to benefit from that tax cut.

Canadians have every right to expect everyone to pay their fair share of tax. That is why the tax rate for the wealthiest Canadians, those earning more than $200,000 in taxable income per year, went up. People are worried about sneaky individuals who know how to work the system slipping through the cracks. The Canadian government began tackling this problem head-on well before the Panama papers revelations by including measures to combat tax evasion and tax avoidance in its 2016 budget.

In total, $444.4 million will be allocated to the Canada Revenue Agency over the next five years to operate more effectively. In other words, CRA is hiring 100 specialized auditors who will oversee large, high-risk multinationals. CRA will have the financial means to conduct its investigations and we think it will be able to recover $500 million in five years from multinationals alone.

What is more, within five years there will be five times as many audits of Canadian taxpayers considered to be high risk. Nearly 3,000 audits will be done, potentially putting $432 million back into government coffers.

Tax fairness is also about going further and dealing with those who abuse the system. A team of 24 auditors will be specifically assigned to go after those who come up with tax schemes and promote them to taxpayers to help them get out of paying the taxes they legitimately owe.

Every year, 200 files will be reviewed, which is 10 times the number currently being reviewed. This team will be able to conduct audits, charge fines, and request criminal investigations if deemed necessary. With the help of its legal team, it will ensure that these types of cases go before the courts quickly.

Canada has taken serious action to ensure greater tax fairness, because it is important that all Canadians contribute equitably. That is why budget 2016 invests an additional $351.6 million over five years to recover unpaid taxes.

Making sure that all Canadians pay their fair share of taxes will give the government the tax base it needs to implement initiatives like the Canada child benefit, the most significant family policy innovation in a generation.

A family could receive up to $6,400 per child under the age of six, and up to $5,400 per child aged six through 17. Canadian families will see an average increase in benefits of about $2,300 in 2016-17. Nine out of ten families with children will receive more money than before.

These families, like all Canadians, are working hard to improve their standard of living. They need to know that the government will not let people trying to dodge their tax obligations get away with it.

Canada is going even further and fighting against tax evasion by working with its partners abroad to improve international fiscal transparency. In fact, Canada is one of over 100 jurisdictions that have committed to implementing the common reporting standard for automatic exchange of information on financial accounts held by non-residents.

Budget 2016 confirmed the Government of Canada's intention to implement the common reporting standard starting on July 1, 2017, which means the exchange of information can begin as early as 2018.

To this end, on April 15, 2016, our government released legislative proposals regarding the implementation of that standard for consultation purposes. The information received will help improve Canada's ability to detect and address cases of tax evasion, ensure tax compliance, and protect the integrity of Canada's tax system.

This is a clear and firm commitment by Canada to fight tax evasion, and it sends a clear message to Canadians that the government is determined to ensure that we have a fair and equitable tax system.

Canada is also working with its partners at the Organisation for Economic Co-operation and Development, the OECD, and the G20, on the base erosion and profit shifting project simply known as the BEPS project. BEPS refers to the tax planning arrangements undertaken by multinational enterprises that, though often legal, exploit the interaction between domestic and international tax rules to reduce their taxes.

Members of the OECD and the G20 have developed regulations to ensure that the profits of these companies are taxed where the economic activities take place and where the value is created.

As part of its efforts to protect the integrity of Canada's tax base, the government announced in budget 2016 that it would implement certain recommendations of the BEPS project. For instance we are going to introduce country-by-country reporting for large multinational corporations. This tool will allow the Canada Revenue Agency to have a global view of the activities of these corporations in each jurisdiction where they operate.

For example, in the country-by-country report, the large multinationals will have to indicate the global allocation, by country, of certain key variables such as consolidated revenue, tax paid or due, the number of employees, and tangible assets.

By providing a high-level overview of the global operations of large multinationals, the country-by-country report will increase transparency and help the Canada Revenue Agency conduct effective risk assessments.

In short, we have put in place a plan to fight tax evasion and tax avoidance that goes far beyond the objectives of the motion being debated today. It is a detailed and ambitious plan.

I can assure the House that the government is determined to continue down this road.

David Graham

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