QUESTION PERIOD — National Revenue
Overseas Tax Evasion
June 13, 2019
Honourable senators, my question for Leader of the Government in the Senate is a follow-up to questions I asked last week about tax evasion and a secret out-of-court settlement which the Canada Revenue Agency offered KPMG clients involved in tax avoidance on the Isle of Man. Earlier this week, officials from the Canada Revenue Agency appeared before the Finance Committee of the other place. They were questioned about this case and the general lack of information on how and why the settlement was reached. While the CRA officials spoke of increasing transparency in these cases, their answers did not really provide any details of exactly how they intend to do so.
Leader, could you please inquire and inform us how Canada Revenue Agency will change its processes in tax evasion cases and settlements such as these to allow for greater transparency for Canadian taxpayers?
I thank the honourable senator for his question. He will know that the minister has given instruction to the CRA to allow for greater transparency in these processes and I will undertake to report back as the honourable senator is asking.
Thank you for inquiring, leader.
Last fall, a report from the Auditor General which looked into tax evasion stated:
We found that the Canada Revenue Agency did not consistently apply tax rules when it audited or reviewed taxpayers’ files, even though the Taxpayer Bill of Rights includes the right to have the law applied consistently.
The Auditor General’s report cited several ways in which ordinary taxpayers are not given the same consideration by CRA as those with offshore accounts.
Leader, does your government have any concern about the perception of a double standard?
I thank the honourable senator for his question. It gives me the opportunity to share the concern inherent in the question that all Canadian taxpayers are treated fairly and equally. That is why the minister has undertaken the direction to the department that she has with respect to the offshore settlements. I would hope that the transparency can lead to the assurance of that fact.
