Tag Archives: CRA

QP: Strange Paradise Papers storylines

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With the Paradise Papers dominating the headlines, and the 150th anniversary of Parliament setting the mood on the Hill, there was going to be a mixed tone. Four previous prime ministers, two former Speakers, and a handful of retired senators were in the Galleries to watch for the anniversary and the speeches that would follow QP.

Andrew Scheer led off, mini-lectern on desk, and he immediately launched into the revelation that Stephen Bronfman was named, then launched the weird non-sequitur about Bronfman going to the state dinner at the White Huose, but the minister of natural resources did not. Trudeau first read a statement about the mass shooting in Texas before noting that they were committed to fighting tax evasion and avoidance. Scheer made the connection between the proposed tax changes and these alleged tax avoiders, and Trudeau reiterated that they were committed to fighting tax evasion. Scheer switched to French to ask again, and Trudeau reiterated his same response. Scheer accused Bronfman of trying to influence the government in protecting offshore accounts. Trudeau said that he would let individuals answer for their own activities, before repeating that they had invested in the CRA and were on track to recoup some $25 billion. Scheer then listed all of the supposed way in which the government was touching the middle class to protect those hiding income offshore, to which Trudeau recited their list of accomplishments in helping the middle class. Guy Caron was up next, railing about Bronfman, the older KPMG investigations, and other avoidance schemes. Trudeau reminded him about the billon-dollar investment they made in the CRA, and fruits that it was yielding. Caron repeated the question, got the same response, and then Alexandre Boulerice took over for the same questions with additional bombast in French, and lo and behold, got much the same answer in French, before going one more round of the very same.

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Roundup: Paradise Papers problems

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Big explosive revelations yesterday as the Paradise Papers were released – a major document dump on more offshore tax havens and those who use it. Canadian connections include the head of fundraising for the Liberal Party, Stephen Bronfman, whose family trust holds assets there, the family of a former senator, while three former prime ministers – Brian Mulroney, Jean Chrétien and Paul Martin have tangential connections to accounts there, as does the Queen. And while headlines may describe Bronfman as a “close advisor,” the party is disputing that label.

The bigger concern seems to be that Bronfman’s long-time law firm lobbied successive governments against going after more offshore tax havens. (Funnily enough, it was the Conservatives who cut funding for CRA to do this kind of investigative work, while the Liberals reinvested in it). The question for the CRA in all of these revelations is whether these funds were managed in Canada – which would break the rules – or whether they were managed from their offshore locations. CRA, incidentally, says it won’t hesitate to investigate these new revelations, which is consistent with the messages we’ve been hearing from them since they got more money for this kind of work.

As for the Queen’s indirect involvement in this, investments made by her Duchy of Lancaster holdings have an indirect stake in a rent-to-own company accused of exploiting the poor by way of these offshore funds.

And now the political reaction. While the NDP will piously shout a chorus of “we told you that you should be going after offshore tax havens!” the Conservatives have already put out press releases describing this as having to do with cozy friends of the Liberals and that this is somehow hypocritical of their fighting for the middle class – never mind that I didn’t think that Mulroney was a Liberal, or the fact that most of these connections are fairly tangential and that there is no evidence of any wrongdoing. But hey, this is about “Liberal aristocracy” and not the “little guy” that they now profess to fight for. (Remember the days when the Conservatives were the party of Bay Street? Me neither).

And Question Period today? I can pretty much guarantee you that after Andrew Scheer makes his dig about Trudeau not standing up for people of faith after the Governor General’s speech the other night (and four days later, the pundits still haven’t gotten up off of their fainting couches from it), it will be endless rounds of questions about these “Liberal insiders” hiding money offshore, tying Bill Morneau to this by way of the Morneau Sheppel/Barbados conspiracy theory, and Diane Lebouthillier will be up constantly to say that this government is going after tax evaders where the previous government cut funding, and that “the net is closing.”

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QP: Here’s how your riding benefitted!

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A rainy Wednesday in Ottawa, and all of the leaders were once again in the Commons, awaiting QP — three days in a row! It’s been a long time since that happened. Andrew Scheer led off, mini-lectern on desk, reading a stilted condemnation of Bill Morneau. Justin Trudeau reminded him that they have an Ethics Commissioner to protect the integrity of the institutions. Scheer insisted that it only works when they disclose, as the villa was not (not entirely true — the villa was disclosed but not the ownership structure), and Trudeau reiterated that they have confidence in the Commissioner. Scheer tried to press on when he learned about the villa’s ownership corporation, and Trudeau reminded him that they have a habit of attacking officers of parliament. Scheer accused the government of “hiding” things from the Commissioner — not really true — and then demanded to know if the Ethics Commissioner was advised of Morneau’s recusals, and Trudeau offered the lecture on the importance of opposition and why it was important to have a Commissioner that was above that. Scheer demanded to know if the Commissioner was advised before Bill C-27 was tabled, and Trudeau reiterated that they work with the Commissioner constantly. Guy Caron was up next, leading for the NDP, and read out statements that Trudeau made about leadership and accountability during the Harper era, and accused him of not living up to his word. Trudeau insisted that he has raised the bar with openness and transparency, and after a second round for the same in French, Marjolaine Boutin-Sweet repeated much the same question in French. Trudeau reminded the House about their move for proactive disclosure that the NDP balked at. Boutin-Sweet repeated the question in English, and got much the same reply.

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QP: Numbered company vs numbered company

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With it being Hallowe’en, we all braced ourselves for terrible themed references and questions. All of the leaders were present, as was Bill Morneau, so it was likely to be another repetitive day. Andrew Scheer led off in French, mini-lectern on desk, raising the comments of the former Commons law clerk about Bill Morneau’s affairs, and Justin Trudeau first noted that the rules were followed, and then reminded them that previous ministers in the former government had similar arrangements. Scheer tried again in English, and got the same response with a more pointed dig at his Scheer’s own financial arrangements. Scheer returned to French to first say that he disclosed his holdings (as did Morneau — seriously), and tried again, and this time Trudeau was far more pointed about the Conservatives attacking the integrity of the Commissioner, and listed the other officers and judges that they attacked while in office. Scheer raised Morneau’s numbered companies, and Trudeau reiterated his previous answer in English. Scheer tried to land a blow about how this was not about the Commissioner but about Morneau himself, but Trudeau decided to go all the way to reminding his opposites that they were the only party to have been found in contempt of Parliament. Guy Caron was up next for the NDP, and raised their demand for the Ethics Commissioner to come before committee, to which Trudeau said that he welcomed any attempt to tighten rules. Linda Duncan was up next, and demanded that the “loopholes” be tightened, for which Trudeau said that the two ministers who held assets indirectly no longer did — pointing to Morneau and Jody Wilson-Raybould. Duncan turned to the issue of methane emissions, and Trudeau pointed out that they were making progress while still growing the economy. Caron tried again in French, and got much the same answer.

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QP: Listing numbered companies

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As the Centre Block was getting all dressed up for the arrival of the President of Colombia, all of the leaders, permanent or “parliamentary,” were in the Chamber and ready to go. Andrew Scheer led off, mini-lectern on desk, leading off with the Globe & Mail story about four other cabinet ministers who apparently own stocks outside of a blind trust — because the Globe is now the opposition research bureau. Justin Trudeau reminded him that everyone worked with the Ethics Commissioner, and that all of the arrangements matched those used by the previous, Conservative finance minister. Scheer demanded to know who they were, and Trudeau tutted that in order to avoid slinging mud, they relied on the Commissioner to offer guidance. Scheer switched to French to ask the same thing, and got the very same response. Scheer tried again in French, and Trudeau praised the advice of the Commissioner. Scheer tried one last time in English, but had a hard time keeping a straight face as he demanded the names. Trudeau instead responded with a lecture about the need for opposition in a healthy democracy, but they had a Commissioner to keep everyone from slinging mud. Guy Caron was up next to lead for the NDP, and offered some added sanctimony with his demands for the names. Trudeau noted that they were willing to go above and beyond the rules, and that the personal attacks were a distraction from the good news about the economy. After another two rounds of the same, in both English and French, Hélène Laverdière raised the nuclear weapon ban treaty and the Nobel Peace Prize, and the government’s refusal to sign it. Trudeau praised the work of the Prize winners, and noted that they were taking leadership with the fissile materials ban, which included nuclear and non-nuclear states.

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QP: Morneau’s surprise announcement

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As is not unusual for a Thursday (somewhat unfortunately), neither the prime minister nor leader of the opposition were present for another day of scripted outrage and conspiracy theories. Pierre Poilievre led off, and railed about the prohibition of ministers owning stocks, and demanded to know if Bill Morneau owned stocks from other companies in his numbered corporations. Morneau regaled the Commons with his meeting with the Ethics Commissioner, and his intention to donate any profit made since he was elected. Poilievre was caught a bit flat-footed by the answer, and stumblingly wondered if he would donate the tax credit from that donation to paying off the deficit, and Morneau stood up to wax lyric about ethics and others conducting their own affairs. Poilievre returned to his demands to know what is in Morneau’s other numbered companies, but Morneau retreated to his more standard pabulum about how they were helping Canadians. Alain Rayes was up next, and spouted the Morneau Shepell/Bombardier conspiracy theory as if it were a mathematical equation. Navdeep Bains was up to list off their support of the aerospace industry. Rayes tried to list the various Morneau Shepell tentacles, to which Bains reiterated the support for aerospace. Guy Caron was up next to lead for the NDP, and he raised the Morneau Shepell/Bill C-27 conspiracy theory, to which Morneau praised their work on pension reforms and the work they’ve done to date. Caron switched to French to list previous resignations due to conflicts, and tried to wedge the C-27 conspiracy theory into it, but Morneau reiterated his commitment to going above and beyond the ethics rules. Ruth Ellen Brosseau was up next, and demanded the government tell the Senate to pass Rona Ambrose’s bill on sexual assault training for judges. While the question should have been disallowed, Jody Wilson-Raybould stated how proud she was the support the bill, but obviously would not comment on the Senate’s internal business. Scott Duvall was up next to demand changes to bankruptcy laws, but Bains wouldn’t make any promises, only promising to help Sears employees.

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QP: Conspiracy vs pabulum

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There was no Justin Trudeau today, as he was busy with “private engagements” (which later turned out to be visiting the new Stanley Cup monument on Sparks Street), nor Andrew Scheer. Before QP got started, there was a moment of silence for the third anniversary of the Parliament Hill shooting and the deaths of Patrice Vincent and Nathan Cirillo. Moment over, Pierre Poilievre led off, railing that the government was taking away the disability tax credits for diabetics. Diane Lebouthillier read a statement in English that stated that her husband had died from diabetes, and that nothing had changed and that CRA was hiring nurses to help with the application process as well as improve data collection to ensure there were no problems going forward. Poilievre then turned to the Morneau Shepell/Bill C-27 conspiracy theory, demanding to know if Morneau got written permission from the Ethics Commissioner to table the bill. Morneau said that while the opposition was focused on his finance, he was working for the nation. After another round of the same, Gérard Deltell repeated the diabetes question in French, got the same answer from Lebouthillier, and then repeated the C-27 question in French — and got the same response from Morneau in French. Guy Caron was up next, leading for the NDP, and after trying to infantalise Morneau, he demanded to know where his higher ethical standards were. Morneau reiterated that he was focusing on Canadian families and touted the growth rate, and Caron demanded an acknowledgment of wrongdoing in English. Morneau’s answer didn’t change. (Mmm, pabulum). Alexandre Boulerice was up next, reiterating the C-27 conspiracy theory, and Morneau offered more pabulum in response. Boulerice reiterated in French, and got some francophone pabulum.

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Roundup: Another CRA overreach?

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It came up in QP at the end of the week, and then on a rare Sunday afternoon press conference, where the Conservatives are accusing the government of going after the disability tax credit, particularly when it comes to diabetics. I’m not sure that this is “the government” per se, and not CRA wielding its authority, especially when you add in the recent furore over the folio on employee discounts, where they were looking to enforce some Tax Court decisions, but not necessarily communicating the specifics in the best way possible. Now, the CRA says that nothing has changed with this particular tax credit, and that they’re in fact trying to make it easier by re-hiring nurses that had previously been fired in order to process these claims, but I guess we’ll have to wait and see if there is a decent response from the government on this (as opposed to some more pabulum around tax fairness for the middle class and so on), but one would trust that they would want to get on top of their messaging for a change, rather than letting the Conservatives keep up with this drip-drip-drip narrative. That said, I’m not sure that “this is another tax grab to pay for Trudeau’s out-of-control spending” is the best message, since most of what these measures collect are mere rounding errors. That said, this might also be CRA flexing its muscles now that it has more resource to do this kind of work, when they were merely treading water beforehand.

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QP: Bill Morneau faces the conspiracy theories

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Minutes before QP was about to start, Bill Morneau announced that he was immediately moving his shares into a blind trust and would sell them off as soon as feasible, and admitted that he may have been a bit naive around the issue. As Conservative MPs filed into the Chamber, party comms staffers pulled them aside to feed them the required lines about how they would react to this news, and there was likely some hasty rewriting of scripts to ensure that they continued to maximize their outrage. Meanwhile, neither the PM nor Andrew Scheer were present, but Bill Morneau was, meaning he would be the target of all of that maximized outrage. Pierre Poilievre led off, intimating a vast conspiracy of numbered accounts that Morneau controlled, and Bill Morneau stood up to give his contrite admission that he could do more, and that he has divested himself of those shares and would keep his Ethics screens in place. Poilievre accused Morneau of being a hypocrite attacking small businesses. Morneau stated that they were working to ensure tax fairness, and that he planned to go beyond the Ethics Commissioner’s recommendations. Poilievre wondered how many times he had to recuse himself (at the press conference, Morneau said twice), and I’m not sure that he reiterated this answer when he repeated his pledge to do better. Alain Rayes was up next to demand in French when he told the PM of his conflicts, and Morneau reminded him that our system has these questions go through the Ethics Commissioner, whom he worked with to ensure there were no conflicts. Rayes asked again, with additional concern trolling about the mandate letters, and Morneau repeated in English this time the same response. Guy Caron was up next for the NDP, accusing Morneau of misleading everyone on his shares. Morneau reminded him that he followed the Commissioner’s guidelines, and when both Caron and Nathan Cullen raised the Morneau Shepell/C-27 conspiracy theory, got much the same answer, and Cullen sanctimoniously repeated Caron’s first question, but Morneau let the message track drop, and accused Cullen of sowing distrust by misrepresenting facts.

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QP: Selling shares, ad nauseam

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While the PM was in Toronto and Bill Morneau in Montreal, it was promising to be an insufferable day in Question Period. Andrew Scheer led off, accusing Morneau of evading Canadian taxes while labelling small businesses as tax cheats (not true), and Bardish Chagger got to stand up to read that Morneau followed the advice of the Ethics Commissioner and that they trust her. Scheer tried again, and Chagger read that they are making changes to their proposals based on what Canadians told them, and hey, lower small business taxes! Scheer switched to English to worry that Morneau didn’t place his shares into a blind trust, and Chagger read another trite statement. They went another round, Chagger trying to play up small business week, and then another round again. Guy Caron was up next, leading for the NDP, raising the supposed conflicts of interest that Morneau was involved in — per the letter that Nathan Cullen sent to the Ethics Commissioner — and Chagger reminded him that they cleared everything with the Commissioner and after another round of the same in French, Cullen got up to reiterate and tried to get Duclos to respond based on pension legislation that could, theoretically, benefit Morneau’s family company, but Chagger gave her stock response. When Cullen chastised her for responding instead of Duclos, the response didn’t change.

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