Financial Administration Act

Bill C-230, An Act to amend the Financial Administration Act and to make consequential amendments to other Acts (debt forgiveness registry) · Report stage · now at committee in the Senate Where it stands

What Bill C-230 would do

The bill would require the President of the Treasury Board to create and maintain a public registry listing large debts, obligations, and government claims that have been waived, written off, or forgiven. It would also make related changes to other federal laws. The published material gives no further detail.

Official text (opens in a new tab)

7 statements

Adam Chambers, Simcoe North

Conservative
“I want the House to pass my bill. It creates a public list showing which corporations have large debts forgiven by the government.”
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Official Hansard

moved that the bill be read the third time and passed. He said: Mr. Speaker, it is an absolute honour to be here tonight with all of my friends from all sides of the House. It is an important day for taxpayers. It is an important day when one is a member of Parliament and has the honour and the opportunity to bring forward legislation that makes amendments to the statutes of Canada. It is a lottery system. I was lucky enough to be given the opportunity to be chosen early in that lottery. I wanted to pick an idea that I believed would have widespread support in the chamber. I would like to thank all of my colleagues from all sides of the House in getting the bill to this stage, which included sending the bill to committee, a lengthy committee study, some thoughtful amendments from all parties at the committee table and bringing it back to the House. It is my hope and sincere pleasure to see this bill carry forward here this evening. I want to thank individual members, and I will return to this later. To put aside the partisan politics, we tangle in the chamber from time to time on some very controversial issues but, with respect to greater transparency for taxpayers, this is an issue that I think we will see unites all members of the chamber, no matter their political affiliation. Bill C-230 would create a registry for the government to disclose every time it writes off a large debt. For corporations, not individual taxpayers, that have their debts waived, those amounts and the identities of those corporations would be published in a corporate registry. That would enhance the level of transparency that taxpayers receive from our tax-collecting authorities. This bill is here before our chamber because we noticed in the public accounts large amounts, year after year, being written off. Members of Parliament from multiple parties, including the government side, probed the government for additional information. We were met with not great answers, a lack of transparency, and a suggestion that we, as parliamentarians, could not receive this information because of the privacy provisions of the Income Tax Act. Given the opportunity, in drawing that high lottery number to bring forward a private member’s bill, I thought that we should change the law, change the privacy provisions in the Income Tax Act and require the government to disclose this information. After all, I think it is a matter of public interest when large debts that are owed by corporations are written off by the government. In fact, just a few years ago, 10 corporations had a total of $1.1 billion written off. A lot of people work hard every day. They pay their taxes honestly. They fret about filing their taxes on time and they worry that they might have made a mistake. They do so honestly and in good faith, because they know that paying taxes helps pay for this wonderful, beautiful country that we have and all the social services that we all enjoy. They are frustrated because they learn that, while they are working hard to pay their taxes, the government is unable to collect millions and indeed billions of dollars each year that corporations owe the government. That is the real basis for this idea that has come to the floor of the House and was proposed as a private member’s bill. I would say that I learned my lesson in the last Parliament. I believed that I had a wonderful idea to increase the penalties for money-laundering offences, but I did not have as much time to work with all members of the chamber to make sure that it was in a position to receive broad-based support and pass. This time, I wanted to do my homework. I consulted with my own team, my own colleagues, who encouraged me to continue. I consulted with members from other parties who thought it was a good idea, and so here we are. I appreciate the opportunity to address this very important issue. I appreciate the opportunity my colleagues have given me to recommend this bill that made it to committee and, as I said, had some thoughtful amendments along the way. There was an amendment at committee about the threshold. The committee recommended increasing the threshold from $1 million to $2 million. While I do not believe we are at an ideal state, I think that in this environment, we can hold out for the perfect and get nothing, or we can make some compromises so that we can all have some level of say and influence over a bill and actually make progress on behalf of taxpayers. I am happy with where we landed, although I would have preferred to keep a lower threshold. In fact, some members on the committee wanted the threshold to be as low as $100,000. We have landed on an opportunity to start this registry in a way that would give taxpayers more transparency about how their money is being collected and used. I would like to commend the work of Senator Percy Downe in the Senate. He not only has been encouraging me along the way but also has his own bill that would also increase transparency requirements at the CRA. It has passed three times from the Senate and will come to this chamber later next month before we break for the summer. This issue and these two bills go hand in hand. This chamber will have time to opine on Senator Downe’s bill at a later date. I think it is important to consider the process. I mentioned we saw the public accounts. We saw amounts going up. We asked for more information. We then submitted an Order Paper question. That question was not answered in the House and it was not answered at committee, but a friend in the other place, Senator Wells, was kind enough to submit a similar question, a more detailed question. From those answers was the genesis and the basis on which we designed this bill, because it outlined the number of corporations and the amounts that had been written off. That is the way the process worked in order to get this bill. It was hard research, asking questions, collaboration and really an opportunity for us to use all of the tools in this chamber in order to find out more information and then propose a law to fix it for the benefit of taxpayers and indeed the country. It is my great honour that I am standing here tonight with this opportunity to propose a change to the statutes of this country. When elected, as I mentioned before, many people could be here for years, indeed decades, and not have the opportunity because it is a lottery system. I took that opportunity very seriously. I wanted to put something forward I thought would have widespread support from all members in this chamber. I cannot help but recognize that in the new environment we are in, with respect to the government now controlling a majority of the seats in this chamber, I have still felt good co-operation and collaboration from members of the government, including the parliamentary secretary and the House leadership team, in order to advance what I believe is a good piece of legislation that would make a positive contribution to public policy in this country. I believe it is time that taxpayers have more transparency. We need to hold not just the government accountable, which I find to be an important part of my role here as an opposition member, but also the agencies that the government entrusts to carry out fundamental activities. The Canada Revenue Agency’s primary objective is to enforce the Income Tax Act and collect the monies owing to government. This bill would bring a level of transparency and accountability to those activities at the Canada Revenue Agency so that all members of Parliament from all parties, and indeed all Canadians, would have a greater line of sight and transparency into the activities of the Canada Revenue Agency. We have to acknowledge that the agents and the employees of the Canada Revenue Agency, by and large, work very hard day in and day out to complete their duties. I will say, at the same time, that I think they have been unfairly burdened with additional activities and requests from the government that have asked them to do things that are far outside their core mandate. The bill would also help refocus resources at the Canada Revenue Agency so it can get back to fulfilling the objectives of its core mandate. It would be inappropriate for me at this time to not recognize some individuals who helped me along the way. I have to pay special tribute to our legislative drafters, who fielded many late-night questions and phone calls outside business hours because they were helping me get the bill into good shape before it had to be tabled in September: Marie-Claude Hébert and Marie Danik. They did fantastic work. I do not think people understand that while many government ministers and departments have armies of lawyers at their service, members of Parliament also have wonderful resources that are able to support us in our role. Those resources are quite small in number, but they pack a mighty punch and have been very busy supplying members of the chamber with great ideas and legislative work on private members’ bills that members introduce on a daily basis. That is done by a very capable and thoughtful team in the House of Commons. The member for Calgary Midnapore has been fantastic to work with as our shadow critic. The member for Louis-Saint-Laurent—Akiawenhrahk has been our shadow critic for CRA. The member for Calgary Rocky Ridge, who originally turned me on to this idea a few years ago, deserves a great round of applause because he has been an advocate for greater transparency at the CRA. I mentioned the parliamentary secretary earlier. Although we have tangled many times on the finance committee, and I was actually moved off that committee, maybe because of those tangles, we did find a way to work well together. I joke, but we do end up working on things in collaboration that we think will enhance this country and do great things for taxpayers. The Minister of Finance, for whom I also have many criticisms, was very gracious to set me up with his staff to work on the bill. We did receive some amendments, as I said, and I worked with them. I also very much appreciated Sean-Matthew O’Neill for his help during this process. Another individual I would like to thank is Jay Gamma, from Edmonton, who has been on this idea as well. He has been talking about it for a couple of years. I would be remiss if I did not pay tribute to the late Jim Flaherty, who was a close mentor of mine. I am wearing green today in his honour. If it were not for him, I would not be standing in this place. I appreciate the opportunity to have the bill voted on. We will see where it goes tonight. I want to thank everyone in the chamber for their support and collaboration in doing something good, which I believe is in the public interest and in the best interests of the citizens of this country.

Adam Chambers, Simcoe North

Conservative
“I want to thank my colleague for working with me on my bill to create a public list of forgiven debts. When an idea is good for the country, we should put politics aside and work together.”
Official Hansard

Mr. Speaker, I certainly appreciate the comment from my hon. colleague, who is no stranger to standing up and speaking in the House. I appreciate that he took the time not just to meet with me about my bill but also to discuss an opportunity where we could maybe have it proceed. This is an example for all of us, that when we have an idea that is good for the country and has widespread support, we could toss aside some of the partisanship from time to time and work in the best interests of all Canadians.

Pat Kelly, Calgary Crowfoot

Conservative
“I support this bill. The government shares less and less information with Parliament every year, including through access to information requests. We need this law to fix that.”
Official Hansard

Mr. Speaker, I thank the member for his kind words when he identified me under my former riding name. I am very pleased that the member has been able to move this legislation. It is important. The reason it is important is that we have actually seen a deterioration in the information available to parliamentarians over the last number of years. The Liberals disclose even less information than they once did when we make inquiries through questions on the Order Paper or through the access to information system. There is a real need for this legislation, and the problem is becoming more urgent, not less. Would the member like to comment on the reason we need this legislation?

Adam Chambers, Simcoe North

Conservative
“The tax agency used to tell us the single biggest debt it forgave each year. Then it stopped, even though the privacy laws did not change. That is why we need this bill to make the government share that information again.”
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Mr. Speaker, indeed, the wonderful member for Calgary Crowfoot did identify that. At one point, the Canada Revenue Agency used to disclose what the single largest writeoff was in a particular fiscal year. That practice, all of a sudden, changed. However, from my understanding, the Income Tax Act privacy rules did not change and the Privacy Act rules did not change, so it did not make much sense that the government and the Canada Revenue Agency would provide less information to the public and to this chamber than they did previously. That really was a significant driving factor in why this bill is here before the House tonight.

Adam Chambers, Simcoe North

Conservative
“This bill will make large canceled debts public. This lets Canadians see how their tax money is handled. It also helps us collect money owed by corporations and make laws to stop them from skipping out on taxes.”
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Mr. Speaker, I believe that the member, as a first-term MP, is doing a wonderful job in his role and in bringing his expertise here. Yes, if there are large writeoffs in the future that exceed the threshold, that information will become public, which then means parliamentarians and the public get more information about how their tax dollars are being used or not collected. It means we can then refocus the resources at the agency to ensure that we recover the money from corporations that is owed, or pass laws to make it more difficult for corporations to skip out on their tax bill. I would also like to mention at this time that the member for Abitibi—Témiscamingue was a wonderful addition to our work on committee and helped this bill get here.

Stephanie Kusie, Calgary Midnapore

Conservative
“I support this bill. It creates a public list of large corporations that have had big tax debts forgiven by the government. Everyday Canadians pay their taxes, but big companies often get away with owing millions of dollars in secret. Making these forgiven debts public will push corporations to pay what they owe.”
Official Hansard

Mr. Speaker, it is always an honour and a pleasure to rise on behalf of the wonderful citizens of Calgary Midnapore to speak on their behalf. The citizens of Calgary Midnapore recently went through something all Canadians went through, and that is tax filing at the end of April. Of course, this is the time when we all must do our duty to society and pay our fair share of taxes. At least, this is what we are supposed to do. Of course, there are always those who make the decision to not file their taxes. There are those who perhaps cannot pay what they owe or are reluctant to pay what they owe. Certainly, it is a problem that compounds over time, but the majority of Canadians, certainly more than a fair share of Canadians, want to do the right thing, and that is pay their part to society and contribute to this incredible nation that we live in. One way we do that is by paying our taxes. I want to thank the member for Simcoe North, who had the foresight to recognize that there was this lack of oversight in Canadian society and that there are corporate members who are not necessarily filing taxes for one reason or another. They owe an amount of tax to our society but are not paying it, and it is not being recognized that they have not kept their commitment to Canadian society in not having paid these amounts. I just want to take a moment to thank the member for Simcoe North, who went through so much effort and recognized this was a problem. He is an expert in finance. I have been in his office when he has CNBC on and is following the financial markets, so it is no surprise to me that he would have this type of thinking and that he would recognize this as something that needs to be fixed. I also want to thank him for taking the time to work with the other parties to gain their collaboration in bringing the bill forward and seeing it successfully to this stage in our process at the House. That is something very rare and special to do. I have never drawn higher than 238th in the private member’s bill draw, so I am very grateful that, first of all, he had this good fortune; second, that he was able to see this idea; and third, that he had the tenacity and the persistence to work through the bill with the government. I would also like to recognize the government’s piece in this collaboration. Of course, as sitting members of the public accounts committee, we went through the bill in detail. We thought about all of the different aspects that would have to be considered. There was compromise on all sides, and again I want to thank the member for his compromise in that regard as well, because it is very easy to get very stubborn when it comes to one’s own legislation. There could be something that they think should be a part of the bill, that they think is more accurate or that they do not want to include, but the member went beyond that. Of course, we know that the Canada Revenue Agency is responsible for collecting debts owing to the government, but in recent years, the CRA has been waiving debts owing to the government in record numbers. Last year, the government wrote off $4.7 billion. It forgave $10.9 billion. In remissions it had $0.4 billion, and in waivers it had $2.6 billion. This is a total of $18.4 billion, which at this point would actually be close to 25% of the deficit we have, not only this year, but also last year. At a time when we are encroaching upon $1.63 trillion in national debt, which we will get to by 2030, every single dollar counts, so I am grateful that the member saw this as the right thing to do for society. It is important for corporations to pay their fair share. At this time when we are in need of such fiscal prudence and responsibility, everyone is required to pay their fair share at this time, and that includes corporations. The member for Simcoe North is not the only one who recognized this lack of oversight, this lack of acknowledgement, of people who are not paying their fair share. There are media outlets such as The Globe and Mail, and Bill Curry of course has done an excellent job of following the public accounts committee and the Treasury Board. Speaking of which, I am going to do a little promotion. On June 2, I am looking very much forward to taping, with the ArriveCAN team, the ArriveCAN second-year anniversary, and we will be distributing that at the end of June. Bill Curry has been fantastic in terms of following stories such as these. CBC News also did a story on the $133 million written off that was owed by a single taxpayer, so this definitely is something that needed to be addressed. Write-offs and waivers for taxes owing to the government were done in secret because of privacy provisions in the Income Tax Act, and the member wanted to bring these numbers to light. Historically, while the CRA spends a lot of time pursuing small businesses and ordinary Canadians who owe minor amounts to the CRA and to Canada, some major corporations have gone unaccountable and unnamed. The legislation would create a public registry that would require the Treasury Board to annually publish a list of corporate entities that had debts owing to the government waived, forgiven or written off. The amount we put forward originally, the member was thinking, was somewhere from $1 million to $5 million. The number that was landed upon was $2 million, which is certainly a substantial amount, but I think it is a good amount that would really provide corporations with an incentive to pay their taxes so they do not end up on this list as well. The contents of the public registry would have to include the following information in relation to each debt: the name, including any business name of the corporation, trust company or partnership that owes the debt or obligation to which His Majesty has a claim; the specific amount that was waived, written off or forgiven; the period to which the amount relates; the act under which the debt, obligation or claim arose; and any other information that the president of the Treasury Board may require. The enactment would amend the Financial Administration Act to require the president of the Treasury Board to establish and maintain this public registry of certain large debts and obligations owed by businesses to His Majesty, as well as claims by His Majesty against businesses that have been waived, written off or forgiven. It would also make consequential amendments to other acts. Here are some observations in relation to this. In 2023-2024, 11 companies received $1.2 billion in combined write-offs for tax debt and other obligations, and 11 companies accounted for nearly one-quarter of the $4.9 billion in write-offs in fiscal year 2023-2024. We are talking about a small number of bad players. The bill’s being passed would be a huge step in the direction of transparency. Certainly, on this side, we have always attempted to fight for transparency, such as in the appointment of a parliamentary budget officer who will always stand up for transparency and call the government out on things that do not appear to be accounted for. Of course, we advocate against tax increases and new tax measures for everyday Canadians. Why should corporations get enormous debt write-offs when they target the little guy for significantly smaller amounts? In summary, I want to again thank the member for Simcoe North for bringing forward the legislation. The right thing to do in society is to pay one’s fair share that is owed to Canada and to one’s fellow citizens. In addition, we are unfortunately in a terrible fiscal position, with significant debt as well as deficits, including $65 billion this year alone, and deficits for the last 15 years. The piece of legislation that is before us looks to remedy this.

Adam Chambers, Simcoe North

Conservative
“I want the House to pass this bill. It will help Canadians trust the government by showing them when large debts are forgiven.”
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Official Hansard

Mr. Speaker, it is a pleasure to see you in the chair tonight, and I want to thank you for your hard work as well and your counsel along the way on this bill. It is my pleasure to have listened to some very thoughtful speeches from my colleagues in this place, including my friend from the Bloc Québécois, the member for Saint-Hyacinthe—Bagot—Acton, who shares a committee spot with me on the international trade committee. I certainly appreciate his advice and counsel on that committee. He himself has a private member’s bill he has introduced with respect to forced labour, which we are looking forward to supporting so it can get through the chamber and come to a vote. With respect to the overall objectives of the bill, I would just mention that bringing integrity back to the system so Canadians have trust in it is important. As mentioned by my hon. colleague from Calgary Midnapore, there have been many journalists who have also helped keep this issue front and centre, including Mr. Bill Curry from The Globe and Mail, who has had a specific focus on this issue. There are a number of great members on the public accounts committee. I am not able to mention whether they are here tonight, but I was very thankful that they brought their thoughtful questions to committee to help the bill get here. In fact, this was the first bill that went to the public accounts committee in almost 25 years, as I am told by the researchers at the Library of Parliament. We were not quite sure what we were doing there, but we were guided very well by the analysts, the clerk and the great chair, the hon. member for Saint John—St. Croix, who did a great job and even had an amendment of his own that helped get this bill over the line. I would be remiss not to mention my staff: Roman Chelyuk and Kyla Canzanese, who is no longer in my office and now works at the mother ship in the whip’s office, controlling all of the things we do in this place. I want to thank them for their wise counsel along the way. As mentioned by the member for Calgary Midnapore, yes, the deficits are large, but we are here to help. I am here to help. This bill is here to help. I certainly appreciate the opportunity to bring it forward here this evening. Of course, one can never forget to thank the most important people in our lives, our families. I want to thank my wife and children, Davie and Cooper, who are probably not watching this at home, but I will share the clip with them later. I appreciate the opportunity, again, to stand here. It is an honour to have a chance to propose changing the statutes of this country. I certainly appreciate this and take this issue with great respect, and I hope we have moved the ball forward in progressing on this very important issue on behalf of taxpayers. It is, indeed, a matter of the public interest. With that, I was always told to quit while I am ahead and take the win when I can have it. At this point, I believe I will ask that the House adopt this bill.

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