That, given that the pandemic and the pressure it is putting on public finances has created the urgent need to close the loopholes being taken advantage of by some taxpayers through the use of tax havens, in the opinion of the House, the government should:
(a) amend the Income Tax Act and the Income Tax Regulations to ensure that income that Canadian corporations repatriate from their subsidiaries in tax havens ceases to be exempt from tax in Canada;
(b) review the concept of permanent establishment so that income reported by shell companies created abroad by Canadian taxpayers for tax purposes is taxed in Canada;
(c) require banks and other federally regulated financial institutions to disclose, in their annual reports, a list of their foreign subsidiaries and the amount of tax they would have been subject to had their income been reported in Canada;
(d) review the tax regime applicable to digital multinationals, whose operations do not depend on having a physical presence, to tax them based on where they conduct business rather than where they reside;
(e) work toward establishing a global registry of actual beneficiaries of shell companies to more effectively combat tax evasion; and
(f) use the global financial crisis caused by the pandemic to launch a strong offensive at the Organisation for Economic Co-operation and Development against tax havens with the aim of eradicating them.
He said: Mr. Speaker, I cannot tell you how happy I am to speak to this motion today. I would like to thank my colleague from for supporting me in this presentation.
As we face a major public finance crisis, we must look at how we could eventually balance our public finances. Two options are always available to governments: increasing taxes or reducing services. This means taking more money out of taxpayers’ pockets or imposing austerity measures. However, while we are thinking of ways to make the people take their medicine, some people are avoiding doing their duty and not contributing according to their means.
In his speech to Congress this week, President Biden said that, according to one study, 55 of the largest businesses in the United States did not pay a penny in federal income tax last year, although they made some $40 billion in profits during the same period. How can that be?
There are two mechanisms that allow companies to shelter income from taxes. First, there are tax loopholes, which are measures provided for by law. When people have enough money, they can hire an army of accountants and tax experts to find the best ways of avoiding paying their fair share. It does not matter whether we are talking about an individual or a business. President Biden referred to the wealthiest people in the U.S., whose tax rate is lower than that of the middle class. That is unacceptable, despicable and scandalous. We need to look at tax loopholes.
There are also tax havens. What is a tax haven? It is a territory where income tax is almost non-existent. Businesses create satellite companies, and sometimes fictitious subsidiaries, in these territories to shelter their profits from the taxman. These subsidiaries exist only to enable companies to shelter their assets from taxes. They do not engage in any business activities or operations. They are empty shells that enable companies to avoid paying their fair share to society.
However transparent or opaque tax havens may be, everyone knows about them and about their impact on public finances. These schemes set up by accountants and other financiers or tax experts can go as far as tax evasion, simply hiding their clients’ income and wealth from the tax authorities. All these mechanisms are ways that some people use to avoid paying their fair share to the government, while other taxpayers continue to pay.
What makes this even more troubling is that, in many cases, these tax havens allow for tax avoidance or tax evasion and often become essential links in international criminal activity, making it possible for organized crime to launder money. Governments are powerless in the face of these tax havens, which create, or are complicit in, tax inequity among countries.
With advances in technology it is very easy to instantly transfer information and money, which makes it much more difficult to track operations.
In 2016, economist and legal expert James S. Henry calculated that a mind-boggling total of more than $36 trillion U.S. was in tax havens. We are talking about 36 trillion American dollars.
In 2017, no less than 40% of international financial transactions allegedly passed through tax havens, in one way or another, according to economist Gabriel Zucman.
The International Monetary Fund estimates that the use of tax havens cost governments a staggering $800 billion. This represents approximately $600 billion a year in corporate taxes and $200 billion a year in personal income taxes.
Tax havens are therefore a political issue that the House must absolutely address. Eliminating them is in the interest of our citizens. We must no longer give a free ride to profiteers, who have a vested interest in keeping these tax havens in place.
Canadian companies are far from being above reproach, since one-third of all Canadian foreign investments are in tax havens. According to Statistics Canada, Canadian businesses invested $381 billion in the 12 main tax havens in 2019.
That same year, the Parliamentary Budget Officer confirmed that these were not really investments, but actually accounting operations aimed at avoiding paying tax. The Canada Revenue Agency estimated that Canadian businesses' investments in tax havens deprive the government of $11.4 billion in tax annually, and that large companies are responsible for 75% of this amount. That is four times more than the CRA estimated it loses to investments in tax havens by individuals in a report published a year earlier. I think that we need to recognize that there is a certain laxity, and that we need to react.
In 2018, the boasted in the House that the Canada Revenue Agency was going to recover $15 billion as a result of its international tax investigations. The CRA's annual report indicates a far more modest result. It mentions a paltry $25 million, 600 times less than the minister estimated.
We recently learned that, five years after the Panama papers leak, the Canada Revenue Agency had yet to lay charges and had only claimed $21 million in unpaid taxes for the entire country.
Revenu Québec, however, recovered $21 million in addition to the $12 million it claimed and that remains unpaid, for a total of $33 million, for Quebec alone. It did so without the benefit of the international tax information the Canada Revenue Agency has access to.
It therefore appears that the Canada Revenue Agency and the federal government are among the most lax when it comes to prosecuting tax fraud. Moreover, the federal government is complicit in the increased use of tax havens because it literally legalized their use.
In 1994, Jean Chrétien's Liberal government allowed companies to repatriate the income earned in Barbados without paying a penny in tax. Paul Martin, who was finance minister at the time, took advantage of the regulatory change to register his company Canada Steamship Lines there.
Stephen Harper's Conservative government went even further, making a regulatory change that legalized 18 new tax havens. Five more have been added since then, 3 under the current Liberal government's previous mandate, which makes it 23 tax havens legalized through regulation.
The House of Commons never had a word to say about it. This major change was made by simple regulatory amendment, which the government tried to hide in a mishmash of documents.
As I said earlier, all of these changes were made by way of regulation. The House of Commons was never asked to consider the matter. Canada therefore plays a major role in international tax havens, but we wonder whether it is doing so for the right reasons.
There is a close connection between the federal government and certain West Indian tax havens, since Canada speaks not only on its own behalf, but on behalf of some of these tax havens. I am talking about countries like Barbados, Bahamas, Antigua and Barbuda, Belize, the Dominican Republic, Grenada, Jamaica, Saint Kitts and Nevis, and Saint Lucia, for which Canada speaks at the annual meetings of the International Monetary Fund. That is unbelievable.
It appears, then, that tax havens have decided that Canada should defend their interests before international financial institutions, but who is defending the interests of Quebeckers and Canadians?
In addition to this highly questionable situation, we see that the digital multinationals have VIP passes that allow them to do business in Canada without paying a cent in taxes. The budget contained some indications that this will change, but why did the government wait so long, when businesses in Quebec and Canada pay their taxes?
The federal government, with its careless and cavalier attitude, has been complicit in allowing this loss of revenue for our public purse. Quebec has no fiscal leeway because it needs to know an income exists to be able to tax it. However, it is the federal government that signs the tax agreements and information-sharing agreements so it is the only one authorized to request tax information, pursuant to the Income Tax Act.
Quebec, in particular, is losing out on revenue because of Ottawa's complacency, and, as I was saying, Quebec does not have much leeway. All of this lost revenue could be put towards much-needed investments in health care, education and infrastructure.
It is also unfortunate that the single tax return bill was not passed, because it would have given Revenu Québec direct access to foreign tax information. That would have been a good thing, because Revenu Québec has proven much more effective than the Canada Revenue Agency in recovering money hidden in tax havens. If Revenu Québec was able to do better than the CRA using only the information it obtained from media leaks, imagine what it could do if it had direct access to foreign tax information.
Motion No. 69 proposes several solutions. It proposes to:
(a) amend the Income Tax Act and the Income Tax Regulations to ensure that income that Canadian corporations repatriate from their subsidiaries in tax havens ceases to be exempt from tax in Canada;
We would also need to repeal subsection 5907(1) of the Income Tax Regulations, which I talked about earlier. The motion also proposes to:
(b) review the concept of permanent establishment so that income reported by shell companies created abroad by Canadian taxpayers for tax purposes is taxed in Canada;
We are talking about “shell companies” that do not engage in any real business activity but should be paying taxes in Canada. The motion also proposes to:
(c) require banks and other federally regulated financial institutions to disclose, in their annual reports, a list of their foreign subsidiaries and the amount of tax they would have been subject to had their income been reported in Canada;
In 2019, Canada's big six banks generated record profits of $46 billion, 50% more than five years before. In 2020, despite the pandemic, they made $41 billion. Their profits are going up, but they are paying less tax. We can only assume this is because they are investing in tax havens.
(d) review the tax regime applicable to digital multinationals, whose operations do not depend on having a physical presence, to tax them based on where they conduct business rather than where they reside;
(e) work toward establishing a global registry of actual beneficiaries of shell companies to more effectively combat tax evasion; and
(f) use the global financial crisis caused by the pandemic to launch a strong offensive at the Organisation for Economic Co-operation and Development against tax havens with the aim of eradicating them.
:
Mr. Speaker, I appreciate the opportunity to take part in today's debate on Motion No. 69.
Shutting down tax evasion and avoidance is a major priority for the government, and it is a priority we have made and been able to take great strides in advancing. It is only in its execution that Motion No. 69 would raise concerns. Canadians expect and deserve a tax system that is fair and effective in supporting their highest priorities. Canadian businesses should pay their fair share of taxes, but they should also be able to compete on a fair and equal footing with their international counterparts so they can grow, create jobs and pay taxes here in Canada.
It is in this regard that the deficiencies of this motion are most apparent. It includes elements that are poorly targeted at achieving their desired results and that could carry negative consequences for businesses and taxpayers. Moreover, the objectives it seeks to achieve would be better addressed through the government initiatives to address tax evasion and avoidance that are already under way.
I would like to discuss some of the consequences of Motion No. 69.
The motion proposes, for example, that income that Canadian corporations repatriate from their subsidiaries in tax havens ceases to be exempt from tax in Canada. In short, it would change what is known as the “exempt surplus treatment” within the income tax. These provisions allow foreign active business income earned by foreign subsidiaries of Canadian corporations to be repatriated to the Canadian corporation as dividends free from Canadian tax, provided the subsidiary is resident and earns the income in a jurisdiction with which Canada has a tax treaty or a tax information exchange agreement.
By changing these income tax rules, this proposal would represent a major change in Canada's international tax policy. At the same time, it would be well targeted toward achieving its apparent objectives and it could potentially have several other negative consequences.
First, the proposal would put Canadian tax rules out of step with international norms. Canada's exempt surplus treatment is long-standing and is consistent with the tax treatment that most other developed countries apply to active business income earned by foreign corporations owned by their residents.
Second, the proposal could adversely impact the competitiveness of Canadian businesses. Exempt surplus treatment is applicable only to foreign active business income. It ensures that foreign subsidiaries of Canadian companies carrying on business in tax treaty countries or countries with which we have a tax information exchange agreement face similar tax rates and compete on an equal footing with other businesses active in those countries. Restricting exempt surplus treatment could therefore undermine the international competitiveness of Canadian companies operating abroad.
Third, the proposal may not generate significant revenues, if any, and may at the same time reduce the amount of profits repatriated and invested in Canadian businesses. It would do so by encouraging Canadian companies that do not require access to their foreign profits in the short term to keep those profits offshore in order to avoid paying Canadian taxes on repatriation. This would result in less foreign profit being repatriated and invested in Canadian businesses, which would reduce taxable Canadian income generated from such investments or from distributions to Canadian shareholders.
It could also result in some Canadian companies paying more tax on their foreign profits to foreign governments and not to Canada. This would occur because the proposal would require setting a threshold foreign tax rate below which exempt surplus treatment would no longer be available. This would incentivize companies that need to repatriate their foreign profits in the short term and wish to benefit from exempt surplus treatment to earn those profits in subsidiaries located in foreign jurisdictions whose tax rates are higher than this threshold rate, but still lower than the Canadian rate.
This would leave less after-tax profits to be repatriated and reinvested in Canadian businesses, which would in turn reduce the taxable Canadian income that is generated when these profits are reinvested or paid out to shareholders. Moreover, the Canadian tax system already has a set of rules that are better targeted at shutting down the kind of tax avoidance at which this proposal appears to be aimed. These rules, known as the foreign accrual property income, or FAPI, rules, are designed to prevent taxpayers from avoiding Canadian taxes by earning investment income or certain types of highly mobile active business income, offshore in low-tax jurisdictions.
The FAPI rules subject these types of income to Canadian tax when it is earned by foreign corporations that are owned by Canadian resident individuals or corporations, thus ensuring that the tax treatment is the same as if the income had been earned in Canada. By targeting more mobile income, rather than active business income in general, the FAPI rules largely avoid the sort of adverse competitiveness effects that Motion No. 69 would entail, so what the motion is offering is a bad solution where a better one already exists.
Our government already recognizes the ongoing risks arising from tax planning arrangements used by multinational enterprises to minimize their taxes. The solutions we continue to implement are achieving their goals without hobbling Canadian businesses. Our government is currently working with the 138 nations of the OECD/G20 inclusive framework on base erosion and profit shifting, to develop a multilateral approach to modernizing the international tax rules. Part of this work involves the development of a global minimum tax regime, commonly referred to as “pillar two”. This new tax regime would ensure that large multinational enterprises pay tax at an agreed minimum rate by allowing countries like Canada to tax their foreign profits when they are earned, as opposed to when they are ultimately repatriated to Canada, if the profits have been taxed at a low rate in the foreign jurisdiction in which they are located.
Our goal is to discourage base erosion and profit shifting by reducing the benefits of earning income in low-tax jurisdictions, but do so through the multilateral consensus-based approach that is more effective than a unilateral action. That would mitigate many, if not all, of the concerns identified within this motion.
In conclusion, I have expended my allotted time addressing the serious problems related to just one element of this motion. This should be enough to give hon. members pause about supporting this motion. Should this debate continue, I would be pleased to present many more.
:
Mr. Speaker, I thank my colleague from for moving this motion, even though I find it a bit odd that he is asking for the support of members of the House while criticizing the work that the Conservatives have done to fight tax evasion.
Today, we have another opportunity to show Canadians that the Conservatives are firmly resolved to combatting tax evasion. We believe it is important to maintain a sense of tax fairness at all levels. Simply put, those who avoid paying taxes, which is illegal, should not be allowed to get rich at the expense of honest, hard-working Canadians.
The world is still fighting the COVID-19 pandemic. As we know, economies have been hard hit and that has created a lot of financial uncertainty. It is therefore more important than ever that measures be taken to guarantee the security of our tax systems and the collection of taxes by governments.
The disproportionate deficit that the Liberal government is currently running only reinforces the urgent need to put an end to tax evasion. The money that is flooding into tax havens will be needed to help our children's great-grandchildren pay off the no-limit credit card the Liberal government has in its hands.
Various estimates suggest that Canada loses between $5 billion and $10 billion annually to tax havens. For instance, a November 2020 report by the Tax Justice Network suggests that Canada loses $7.9 billion annually to tax havens. That is equivalent to the annual salaries of about 100,000 nurses. That is a lot of money.
A report published by the Quebec National Assembly in March 2017 estimated that tax havens have prevented the Province of Quebec from collecting between $0.8 billion and $1 billion in taxes. According to the Institut de recherche en économie contemporaine, Quebec is actually losing between $1 billion and $2 billion. According to some estimates, the number could be even higher.
The Tax Justice Network report estimates that Canada is responsible for $10 billion in losses in other countries. Although Canadians have a lot to lose because of tax evasion, it is important to realize that other countries are also significantly affected by these illegal and fraudulent practices. We should note that the poorest countries tend to suffer more from problems related to tax evasion.
Between April 2014 and March 2020, Canadian courts found 263 people guilty of tax evasion. Is that a lot of people or not many? We do not know. According to the sentencing, these 263 people hid $118 million in federal taxes. Collectively, they were fined $32 million and sentenced to 230 years in prison. That may seem like a lot, but if we compare this to the real figures on tax evasion in Canada, we realize that it is very little. This is no small matter, especially since we have not yet managed to reach the objective of having everyone pay their taxes.
We must continue to take measures to ensure that taxes are paid and that people who unfairly try to avoid their obligations are held accountable. Fraudulent companies established in tax havens have not only avoided paying taxes but have also stolen money from Canadian workers' personal funds. In a recent case, more than $500 million was siphoned from Canada to the Isle of Man, in order to hide that money from creditors. This case involved massive amounts of money, including entire retirement funds, which were lost as a result of fraudulent activities.
Although the executives of the companies involved were found guilty of fraud, the majority of the money they had earned from their illegal activities was never found. The contributors to these pension funds were swindled. Unfortunately, these Canadians and many others were robbed of their savings, and they will never see that money again. We need to implement measures to ensure that fraudsters are never able to exploit Canadians like that again.
The Conservative Party believes that individuals and businesses must pay their fair share of taxes. Corporate tax evasion entails significant economic and social costs. It is unacceptable for the largest companies in the world and the wealthiest individuals to thumb their noses at Canada's tax system or any other system.
Billions of dollars in revenue are being stolen from governments, and inequality is growing. In the end, the biggest victims are consumers, small businesses and the economy in general.
Throughout its history, the Conservative Party of Canada has maintained a strong record when it comes to combatting tax evasion and cracking down on tax havens. In fact, the former Conservative government introduced more than 85 measures to close tax loopholes and improve the fairness and integrity of our system.
For example, budget 2013 introduced changes to the Canada Revenue Agency's compliance programs, which enhanced the effectiveness and integrity of the tax system by targeting tax evaders who were considered high risk. These changes generated over $1.5 billion in additional annual revenue.
To go back a little further, as minister of finance, the late Jim Flaherty announced an initiative to crack down on tax havens in budget 2007. At the time, he said, and I quote:
When multinational corporations use this tax loophole, Canadian taxpayers are indirectly subsidizing their international operations. Our goal is to improve the fairness of our tax system and further reduce taxes for hard-working Canadians while preserving Canada's overall tax advantage...
This anti-tax-haven initiative was launched to prevent multinational corporations from using tax avoidance structures to generate two expense deductions for only one investment. This initiative also sought to appoint an advisory panel of experts to look for ways to generally improve and leverage the fairness and competitiveness of Canada's international tax system.
I also want to remind members that the Conservatives supported a 2016 report from the Standing Committee on Finance on tax evasion and tax loopholes. That report specifically recommended that the Income Tax Act be reviewed and that steps be taken to improve coordination between the Canada Revenue Agency and the Department of Justice in the investigation and prosecution of cases of tax evasion.
The Conservative Party has always stood strong in the fight against tax evasion in order to ensure fairness and prosperity for all Canadians. We will always continue to do so.
We still have a long way to go, though. A 2019 CRA report revealed that 20% of respondents believed the benefits of tax cheating outweighed the risks, 13% felt that tax evasion was no big deal, and 26% did not think they would be caught trying to evade taxes. In other words, it is going to take a lot of work to fight tax evasion. The government needs to send the public a clear message.
Getting back to Motion No. 69, I want to tell my hon. colleague that passing laws on these issues must be done with care and attention. Some parts of his motion call for more thorough consideration. That is for another day, however. Today, the Conservative Party also believes that, during a crisis, the government must ensure that all taxes legally owed by Canadians are duly paid. To do any less would be inappropriate.
I hope my colleagues will soon be able to thoroughly examine these issues during a Standing Committee on Finance study on tax evasion. Our party has an impressive record when it comes to fighting tax evasion. We will always stand up for the best interests of Canadians from coast to coast to coast.
In conclusion, our party will support the motion so that it may be studied in committee. Fighting tax fraud and tax evasion is a tough task because the perpetrators have almost unlimited means to avoid paying the Canadian government what they owe. Parliamentarians have a clear role to play. They have to send a clear message that these practices are illegal, unjust and unfair and will never be tolerated.
:
Mr. Speaker, I hope you did not pay too much attention to the last two speeches we just heard, because they were rather hypocritical.
These people say one thing and do the opposite. They are grasping at straws, looking for excuses. When they find things that do not suit their narrative, they say it is too complicated, it would be hard to do, or we have to wait for the OECD. These people have incredible resources, but they look for excuses to get out of doing anything.
We see that from both the Conservatives and the Liberals. As far as tax evasion and the use of tax havens are concerned, the system was built under Conservative and Liberal governments with the support of Canada's big banks and major accounting firms, which have spent years having fun helping Canadian millionaires, billionaires and corporations profit from not having to pay their fair share of taxes.
I want to point out that the NDP has been monitoring and working on the issue of tax evasion and tax havens for years.
I have already congratulated my colleague from Montarville on Motion No. 69, which we are debating today. I also want to acknowledge the work of the member for Joliette, who has been passionate about this file for years and has spoken about it a number of times. I can assure him that we want the same thing.
I do want to caution my colleagues though. I moved a motion in favour of fighting tax havens during the previous Parliament. The motion we moved in the House was adopted, and the Liberals voted in favour of it. However, they went on to sign new tax treaties with other tax havens.
I wish my colleague from Montarville the best of luck, but I want to warn him that the Conservatives and the Liberals may sometimes vote in favour of a given declaration of intent or worthy principle with which we agree as a progressive, left-wing political party, but that does not always produce the expected results. Let us hope it will be different this time. My colleague can always count on the NDP caucus to demand more justice and equity in this area.
The principle behind tax havens is not very complicated. I spoke about it earlier. It has been explained by many people, including Alain Deneault, who wrote a book called Une escroquerie légalisée: précis sur les « paradis fiscaux », or “A legalized scam: a closer look at tax havens”. Contrary to what my Conservative colleague said, we must fight all illegal actions. That is obvious, but the problem is that, with all the agreements and treaties that have been signed over the years, the use of tax havens is largely legal. This is due to the principle of avoiding double taxation.
Based on that principle and the use of tax havens, the same income or profit cannot be taxed twice. Let me give a simple example, that of Barbados, which is the oldest tax haven with which Canada has had an agreement, since 1980, if memory serves.
People send their money, profits or income to Barbados, where they pay 1% tax on that income. Then they can bring that money back to Canada and say that they have already paid taxes on it, and they will not be taxed twice on the same income. If it is a business, it should pay a minimum of 15% tax here. If it is an individual, it would be 30% in taxes. I am giving these percentages as examples, but the principle is that income cannot be taxed twice.
However, why could we not eliminate the advantage of using tax havens by telling these people that although the tax in Barbados is 1%, when they return to Canada, repatriate their money and put it Canadian accounts, the difference will be taxed?
They would be made to pay the taxes they did not pay here, in Canada. If someone only pays 1% in taxes on their company's profits because they were sent to Barbados, why could we not make them pay 14% in taxes?
This would eliminate any incentive to use such schemes. In the end, they would not pay more tax, but they would pay exactly the same percentage as other Quebec and Canadian citizens and other businesses, small or large, in Canada. This would uphold the principle of tax equity and eliminate all the advantages of using these schemes, which Alain Deneault does not refer to as avoidance of double taxation but rather “double non-taxation”, meaning these profits are basically not taxed anywhere. Someone pays a negligible amount of taxes in the tax haven, and then they pay nothing here, with the excuse that the revenue has already been taxed.
According to the member for Montarville, the traditional governing parties, the Liberals and Conservatives, sometimes say they cannot do anything about it. The NDP thinks they can. We think they are accommodating, complicit even, because they operate according to these rules. They want things to work this way, so they work hand in hand with the big Canadian banks. For years, those banks have had branches in tropical paradises, where it is warm and lovely, so they can help the super-rich, the millionaires and billionaires, avoid paying their fair share for our public services, like health, public transit, education and well-funded, public universities.
More than $80 billion Canadian are hidden in Barbados alone, the oldest tax haven with which Canada does business. Canada cannot access that money. That is what happens when people use tax havens. It undermines the equality of individuals and our ability to act.
Tax havens have multiplied over the years. One of the most obvious and glaring examples is the Cayman Islands, where there are more registered companies than there are residents. This means one of two things. Either their inhabitants are extremely entrepreneurial and own two or three companies each, or the Cayman Islands have become a kind of post office box where companies pretend to have a branch or office. Entire buildings contain nothing but post office boxes, so that companies can prove they have an address there, and therefore not pay taxes.
All of these schemes are well known, and yet Canadian governments, led by the traditional parties, have done absolutely nothing for years. This has serious repercussions, especially in these pandemic times, when huge investments are needed not only to fight COVID-19, but also to ensure an equitable, fair and green economic recovery that takes climate change and the climate crisis into account.
Government spending or investments are considerable and that is normal. We are living beyond our means, however, and at some point we are going to have to think about making cuts. Then it will be time for the Conservatives' favourite topic: austerity and making cuts to public services and services for families, seniors and students.
That is not the path the NDP wants to take whatsoever. If we look at government spending alone without looking at revenues, then we are getting it wrong. As the left-leaning progressive party, we are saying that we can bring in a healthy portion of revenues from the fight against tax havens.
We must seize this opportunity. A few years ago, the Department of Finance said that Canada loses roughly $16 billion a year to tax havens and that was a conservative estimate. The Conference Board of Canada thinks it is more than $90 billion. That organization is not known to have an international socialist bent that wants to bleed the big banks and the wealthy. Let us just say that we are talking about tens of billions of dollars.
Why can we not all work together and take this opportunity to say that enough is enough and put an end to this? We can accomplish a lot of things more effectively in a coalition or multilaterally with our OECD partners, and that is a good thing.
However, most of Canada's tax treaties are bilateral, between Canada and one other country. There is therefore no need to wait for the United Nations or the OECD to act. If they do, that is great and we will collaborate, but we can act on our own initiative. That would bring in more money and would be more fair for our businesses that pay their fair share of taxes in Canada.
The NDP has other measures to propose to increase revenues, such as a tax on wealth for those who earn over $20 million a year and a tax on the excessive profits of companies like Amazon and Netflix. In that regard, a report from the Parliamentary Budget Officer indicated that a temporary tax on the excessive profits of these companies could bring in up to $8 billion a year.
We therefore have to seize these opportunities, and the NDP will be very proud to support Motion No. 69. It is a step in the right direction, but there are still many other things we can do to improve tax fairness. The NDP has all kinds of good ideas to share in that regard.