QUESTION PERIOD — National Revenue
Canada Revenue Agency--Tax Gap
June 19, 2019
Honourable senators, my question is for Senator Harder.
Senator Harder, the Senate did not want the Canada Revenue Agency reviewing itself. That is why it passed Bill S-243 requiring the Parliamentary Budget Officer to conduct an independent analysis of the tax gap – the difference between what is owed and what they actually collect. Unfortunately, that bill was defeated in the House of Commons. We only have the Canada Revenue Agency’s self-review, another one of which was released earlier this week.
Even so, by the Canada Revenue Agency’s own admission, the four limited analyses they have conducted to date have yielded an estimated tax gap of up to $23.8 billion in unpaid and uncollected taxes.
The question is: Why won’t the Government of Canada allow the Parliamentary Budget Officer to perform an independent analysis of the tax gap so Canadians will know how much money is not being collected by the Canada Revenue Agency?
I thank the honourable senator for his question and his dogged persistence on this issue, as well as a certain bridge. Let me respond by saying that the Government of Canada and certainly the Minister of National Revenue are committed to ensuring that there is not only fair treatment in the tax code but that all taxpayers pay what is appropriate for their income.
The honourable senator references the report that was just tabled. That’s the fifth public report on this matter. Based on that report, I’m informed that it is estimated that the recent audits of corporate tax contributors who haven’t paid appropriate levels has yielded an additional $6.1 billion. While there obviously continues to be a tax gap, the vigilance and determination of the government is clear. The additional revenues beyond those that are normally and routinely contributed to by corporate interests are being pursued.
I have a supplementary question, if I could, Senator Harder.
The Canada Revenue Agency has not co-operated with the Parliamentary Budget Officer, notwithstanding the law that they must. The good news is that Statistics Canada has co-operated, to a large degree. I understand the PBO will be producing a report later this week; I suspect the figure for the tax gap will be even higher.
Honourable senators, a truly independent analysis will prove that the agency has underestimated the amount of the tax gap, but even they admit it could be up to $23.8 billion. For the sake of comparison, that is more than the combined budgets of the Departments of Agriculture, Heritage, Citizenship and Immigration, Environment, Fisheries and Oceans, Health Canada, Natural Resources, Justice, Transport and Veterans Affairs.
Honourable senators, imagine a Canada where everyone benefits from a Canada Revenue Agency that has a plan of action and a commitment to actually collect the billions of dollars of additional tax dollars owed to Canada. When will the Government of Canada force the Canada Revenue Agency to do their job and collect all those taxes owing for the benefit of all Canadians?
I thank the honourable senator for his question. I just want to underscore that this government has increased the capacity of CRA to pursue tax audits, to pursue delinquent accounts and tax evaders. The increased revenue reflects that. I’m not saying for a moment that there is not more work to be done. I certainly will raise to the attention of the minister responsible the concerns of the honourable senator. I think it’s important for us to recognize that significant progress has been made in the last four years.
