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Standing Committee on Government Operations and Estimates (May 11, 2020)

Notice of meeting

43rd Parliament, 1st Session

Meeting 11
Monday, May 11, 2020, 2:00 p.m. to 4:00 p.m.
Webcast
Videoconference

Government’s Response to the COVID-19 Pandemic

2:00 p.m. to 3:00 p.m.

Appearing

  • Hon. Diane Lebouthillier, P.C., M.P., Minister of National Revenue

Witnesses

  • Canada Revenue Agency
    • Bob Hamilton, Commissioner of Revenue
    • Frank Vermaeten, Assistant Commissioner, Assessment, Benefit and Service Branch
    • Geoff Trueman, Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch
    • Ted Gallivan, Assistant Commissioner, Compliance Programs Branch

3:00 p.m. to 4:00 p.m.

Appearing

  • Hon. Carla Qualtrough, P.C., M.P., Minister of Employment, Workforce Development and Disability Inclusion

Witnesses

  • Department of Employment and Social Development
    • Graham Flack, Deputy Minister
    • Benoît Robidoux, Associate Deputy Minister
    • Mark Perlman, Chief Financial Officer and Senior Assistant Deputy Minister
  • Service Canada
    • Cliff C. Groen, Acting Chief Operating Officer

Clerk of the Committee
Paul Cardegna (613-995-9469)

2020-05-08 4:04 p.m.

Minister’s Opening Remarks

Speech for Diane Lebouthillier, Minister of National Revenue

Standing Committee on Government Operations and Estimates

Ottawa, Ontario
May 11, 2020

Check against delivery.

Hello. Mr. Chair, ladies and gentlemen, and parliamentary colleagues.

Thank you for this invitation to tell you about the work of the Canada Revenue Agency in supporting Canadians during this unprecedented time. The study you are undertaking on the measures implemented by the Government to support Canadians in response to the COVID-19 pandemic is very important. I would like to thank you for your attention in this matter because this pandemic severely affects all Canadians.

I am pleased to be accompanied today by the Commissioner of the Canada Revenue Agency, Bob Hamilton, and three members of the Agency’s senior management: Frank Vermaeten, Assistant Commissioner, Assessment, Benefit and Service Branch; Geoff Trueman, Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch; and Ted Gallivan, Assistant Commissioner, Compliance Programs Branch.

Since 2015, my two mandates as Minister of National Revenue have included improving the service delivery that is offered to Canadians. This means the Agency and I place Canadians at the centre of all our priorities.

Concerned with continuous improvement, we are working toward reshaping our service model by considering Canadians not as mere taxpayers, but as important clients.

We recently launched our People First philosophy and it is the pillar of our new service model.

This philosophy, which is widely disseminated within the organization, is certainly one of the key elements of the Agency's current response to the implementation of the Canadian government's economic emergency measures to deal with this difficult period.

Encouraged by this philosophy, all Agency employees have been working hard for almost two months to support Canadians during the COVID-19 pandemic. Everyone works with compassion in a spirit of cooperation. And innovation is in the spotlight.

In addition to an impressive mobilization of human resources in the field—whether employees, government partners, or service providers—we are also seeing a significant increase in the technology that is being deployed on a day-to-day basis to serve Canadians in an even more accessible, efficient and rapid manner.

Chronologically, allow me to give you an overview of the Agency's work over the past eight weeks.

The Agency started by realigning its efforts in order to be more efficient during this crisis.

Then, on March 18, it announced that it was pushing back the tax return filing deadline for individuals, corporations and trusts, thereby relieving Canadians of one less burden. For example, in the case of individuals, the filing of tax returns has been pushed to June 1, and payment for the 2019 tax year has been pushed to September 1, 2020. In the same momentum, the Agency also announced the temporary suspension of the vast majority of audits.

Subsequently, the Agency diligently and quickly implemented the Canadian government's various economic measures. First and foremost: the Canada Emergency Response Benefit, or the CERB.

As you undoubtedly know, the Agency is responsible for a significant portion of the administration of the Canada Emergency Response Benefit, the CERB, and we are fully responsible for administering the Canada Emergency Wage Subsidy, the CEWS, as well as the Canada Emergency Student Benefit, the CESB.

However, it is my colleague, Minister Qualtrough, who was responsible for establishing the eligibility criteria for the Canada Emergency Response Benefit and the Canada Emergency Student Benefit. I am sure that she will be happy to answer your questions regarding the eligibility criteria for the CERB and the CESB.

Regarding the CERB and the CEWS, I am particularly proud to see how quick and easy the application process is for Canadians. And I must emphasize that the amounts are paid promptly. In fact, most people can fill out the application in less than two minutes and receive their payment by direct deposit within three business days—sometimes even within two days!

We have also demonstrated significant technological capacity, which is very impressive when you consider the online services were set up in just a few weeks. When the CERB was launched, the Agency’s system registered 30,000 applications in 12 minutes.

During the busiest periods of the first week, the Agency processed nearly 1,000 transactions per minute, every minute, for two days, for 18 hours a day! That is unprecedented. Since April 6, the Agency has reviewed and processed nearly 7.5 million CERB applications, for more than 4.45 million unique individuals. And we are proud of the Agency’s incredible work in the circumstances. In fact, the media described the technological implementation of the CERB as a “small miracle.”

This miracle would have been impossible without the exceptional cooperation between the Agency’s public servants and those from Employment and Social Development Canada.

While we are on the subject of the CERB, it is also worthwhile to note that the third period of applications begins today. We are confident that everything will go as planned.

Then, on April 27, the Agency deployed a new economic measure, namely, the Canada Emergency Wage Subsidy, the CEWS. Again, everyone pitched in to make that application process a success. After a week, more than 97,000 businesses had taken advantage of this emergency measure.

Finally, the Agency will soon be able to launch the Canada Emergency Student Benefit, the CESB. Students will soon be able to submit their application through the Agency portal and the My Account service.

In addition to these emergency measures, it should also be noted that the Canadian government has enhanced the Canada Child Benefit and the GST/HST credit, thereby giving an additional boost to support Canadians during COVID-19. However, these measures are also implemented by the Agency.

On April 9, 2020, the Government of Canada issued a special single GST/HST credit payment of $5.1 billion to 11.8 million Canadians because of the COVID-19 pandemic. This was the largest socio-economic payment ever made to Canadians. Individuals who benefited from this measure received close to $400 on average for single people and nearly $600 for couples.

In addition, on May 20, 2020, to help families during this difficult period, the Government of Canada will issue 3.7 million additional Canada Child Benefit lump sum payments totalling $2 billion.

This measure will be delivered at the same time as the regular benefit payment scheduled for May 2020 and will provide up to $300 per child. This means that the beneficiary families will receive close to $550 on average.

As you might imagine, deploying such measures obviously involves a great deal of work, both upstream and downstream. The Agency designed websites for each of the government's economic measures to inform and guide Canadians regarding the various steps to follow.

It was able to mobilize a lot of people in a heartbeat, starting with its call centre agents. For this purpose, the Agency’s phone service has been migrated to a virtual platform, and wait times are manageable. To keep up the pace, the Agency also reassigned many employees to new duties. A total of 7,500 employees answered a call to lend a hand to the call centres.

The Agency also continued to provide high-quality information, namely through organizing and participating in several media briefings while relying on its collaborative and proactive approach.

The Agency is also very grateful for the help provided by its partners and service providers. These include Employment and Social Development Canada, Shared Services Canada, and the Department of Finance, which is also the authority for eligibility for the CBWS.

We must also highlight the work of some 20 financial institutions; among other things, they facilitated direct deposits into their clients' bank accounts.

Of course, while all this work took place, the CRA also made sure that appropriate compliance measures were put in place for all applications for emergency financial assistance. Ensuring compliance is an essential part of the Agency’s mission. We are committed to preserving the integrity of our Canadian tax system.

Therefore, the Agency has developed strict auditing measures—electronic and manual—and even several safeguards regarding claimant eligibility, refund terms, and even tax loopholes. You can rest assured that offenders will face severe consequences, up to and including imprisonment.

Mr. Chair, this pandemic continues to have a terrible impact on many of our fellow citizens—not only on their health, but also on their economic well-being. However, I am proud of the efficiency with which the entire government has mobilized in recent weeks to support Canadians.

I am extremely proud to have seen the extent to which Agency employees were able to prove beyond any doubt that the Agency is definitely at Canadians' service and that it puts Canadians first.

As the old saying goes, "When the going gets tough, the tough get going." I can honestly tell you that Agency employees have proven that they are very tough.

With those good words, I thank you.

Minister’s Opening Remarks

Speech for Diane Lebouthillier, Minister of National Revenue

Standing Committee on Government Operations and Estimates

Ottawa, Ontario
May 11, 2020

Check against delivery.

Hello Mr. Chair,

Thank you for this invitation to tell you about the work of the Canada Revenue Agency in supporting Canadians during this unprecedented time. The work you are undertaking on government measures to support Canadians in response to the COVID-19 pandemic is very important.

I am pleased to be accompanied today by the Commissioner of the Canada Revenue Agency, Bob Hamilton, and three members of the Agency's senior management:

Frank Vermaeten, Assistant Commissioner, Assessment, Benefit and Service Branch;
Geoff Trueman, Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch;
and Ted Gallivan, Assistant Commissioner, Compliance Programs Branch.

Since 2015, I have focussed on improving the service delivery that is offered to Canadians. This means the Agency and I place Canadians at the centre of all our priorities.

We recently launched our People First philosophy and it is the pillar of our new service model. This philosophy is a key element in the Agency's response to implementing the emergency economic measures.

Driven by the People First philosophy, Agency employees have been working hard to support Canadians during the COVID-19 pandemic.

In addition to taking part in an impressive mobilization of human resources in the field, we are also seeing a significant increase in the technology being used every day to serve Canadians in an even more accessible, efficient and rapid manner.

Allow me to give you an overview of the CRA's work over the past eight weeks.

The Agency started by realigning its efforts in order to be more efficient during this crisis. Then, on March 18, it announced it was pushing back the tax filing deadline for individuals, corporations and trusts, thereby relieving Canadians of that burden. In the same spirit, the Agency also announced the temporary suspension of the vast majority of audits.

The Agency then worked quickly to implement the government's various economic measures. First and foremost: the Canada Emergency Response Benefit.

As I am sure you know, the Agency is responsible for a significant part of administering the CERB, and the CRA is fully responsible for administering the Canada Emergency Wage Subsidy, as well as the Canada Emergency Student Benefit.

Regarding the CERB and the CEWS, I am especially proud of how quick and easy the application process is for Canadians. And I must emphasize that the amounts are paid promptly. In fact, most people receive their payment by direct deposit within three business days—sometimes even two days!

We have also demonstrated significant technological capacity, which is very impressive when you consider the online services were set up in just a few weeks. When the CERB was launched, the Agency's system registered 30,000 applications in 12 minutes.

Since April 6, the Agency has reviewed and processed nearly 7.5 million CERB applications, for more than 4.45 million unique individuals. I am very proud of the Agency's incredible work under these circumstances. In fact, the media described the technological implementation of the CERB as a "small miracle."

This miracle would have been impossible without the exceptional cooperation between the Agency's public servants and those from Employment and Social Development Canada.

On April 27, the Agency deployed a new economic measure, namely, the Canada Emergency Wage Subsidy. Again, everyone pitched in to make this application process a success.

Finally, the Agency will soon be able to launch the Canada Emergency Student Benefit, the CESB. Students will soon be able to submit their application through the Agency portal and the My Account service.

The CRA was able to mobilize a lot of people quickly, starting with the agents at its call centres. For this purpose, the Agency's phone service has been migrated to a virtual platform, and wait times are manageable. To keep up the pace, the Agency also reassigned many employees to new duties. A total of 7,500 employees answered a call to lend a hand to the call centres.

Of course, while all this work took place, the CRA also made sure that appropriate compliance measures were put in place for all applications for emergency financial assistance. Ensuring compliance is an essential part of the Agency's mission. We are committed to preserving the integrity of our Canadian tax system.

In this regard, the Agency developed strict auditing measures—electronic and manual—and several safeguards for claimant eligibility, refund terms, and even tax loopholes. You can rest assured that offenders will face severe consequences, up to and including imprisonment.

Mr. Chair, this pandemic continues to have a terrible impact on many of our fellow citizens—not only on their health, but also on their economic well-being. However, I am proud of the efficiency with which the entire government has mobilized in recent weeks to support Canadians.

As the saying goes, "When the going gets tough, the tough get going." I can proudly tell you that Agency employees have shown that they are, indeed, very tough.

I am now ready to take your questions.

Thank you.

Minister's Placemat

Minister of National Revenue appearance before OGGO - May 11, 2020

COVID-19 Support (General)/People First

Redirect: Commissioner/Frank Vermaeten

The CRA is responsible for administering the CERB jointly with ESDC. The Agency also administers the CEWS and will administer the CESB. My colleague, Minister Qualtrough (ESDC) can answer questions about CESB and CERB eligibility, and the department of Finance is the authority on CEWS eligibility.

Since I became Minister of National Revenue, I have been committed to ensuring the CRA is an organization that is fair, trusted and helpful by putting people first. Over the past years, the CRA has been changing to better serve Canadians, culminating in the announcement of a Chief Services Officer and the launch of a new People First approach to guide the CRA's efforts to better serve Canadians. Little did we know then that the CRA would soon be called upon to deliver critical programs to support Canadians during the pandemic.

For the past 8 weeks, the CRA has been delivering key measures in the Government's Economic Response Plan to support Canadians, including:

The Canada Emergency Response Benefit (CERB), a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19

The Canada Emergency Wage Subsidy (CEWS), to support employers that are hardest hit by the pandemic, and protect the jobs Canadians depend on.

The Canada emergency Student Benefit (CESB), to provide support to students and new graduates who are not eligible for the Canada Emergency Response Benefit, Employment Insurance or are unable to find work due to COVID-19.

And deferral of the tax filing due date; increasing the Child Care Benefit (CCB) and a one-time special GST credit payment, the biggest one-time payment ever, and Deferred payment date for individuals and businesses until after September 1, 2020 , for payment of any income tax amounts that become owing on or after March 18 and before September 2020.

Canada Emergency Response Benefit (CERB) Roll-Out

Redirect: Commissioner/Frank Vermaeten

The Canada Revenue Agency (CRA) developed a CERB application process that was quick and easy to use. As a result, many Canadians received payments days after applying. Soon after applications opened, on April 6, the CRA was processing a thousand transactions per minute.

The CRA partnered with financial institutions to make it possible for Canadians to register for direct deposit with the CRA through their bank portals.

Since April 6, the CRA has processed more than 7.5 million applications for the CERB.

The third period of CERB applications opens today.

The CRA will be verifying that individuals are eligible to receive the benefit. In cases where claimants are found to be

ineligible, they will be contacted to make arrangements to repay any applicable amounts.

As part of the Canada Emergency Wage Subsidy, the CRA will be comparing employers' payroll records with information provided by CERB claimants to ensure that individuals who have returned to work and who have therefore become ineligible for the CERB repay those amounts.

Canada Emergency Wage Subsidy (CEWS) Roll-Out

Redirect: Commissioner/Frank Vermaeten

The Canada Emergency Wage Subsidy (CEWS) allows employers to keep and re-hire workers amidst the challenges posed by the COVID-19 pandemic.

The CEWS is a subsidy available for a period of twelve weeks from March 15, 2020 to June 6, 2020, that will provide a subsidy of 75% of eligible remuneration, paid by an eligible employer that qualifies, to each eligible employee—up to a maximum of $847 per week.

Employers may be able to claim the wage subsidy for one or more of the following claim periods:

Employers may apply for the CEWS up to December 2020. CRA's application portal opened on April 27. Since then, over 125K businesses have applied and $3.10 billion has been paid. This represents over 1.5 million employees whose wages will be supported by CEWS.

Period 2 of the CEWS will cover April 12 to May 9. Applications will be open May 13. Businesses must submit a separate application for each CEWS claim period.

The CRA has actively engaged small, medium and large businesses as well as charitable organizations. As of May 7, the CRA led 5 Q&A sessions and has partnered with stakeholders to run 9 additional events as of May 7. Three more of these sessions are planned for this week.

The CRA has also published a number of resources to help Canadian businesses understand how to apply and take advantage of this fiscal measure.

The CRA again partnered with financial institutions to make it possible for employers to register business payroll accounts for direct deposit with the CRA through their bank portals.

Legislation allows for providing the names of businesses approved to receive the CEWS. The Government is currently considering how to best provide Canadians with this data. More information on this will be provided shortly.

Canada Emergency Student Benefit (CESB) Roll-Out

Redirect: Commissioner/Frank Vermaeten

The Government of Canada is providing an economic response to the COVID-19 global crisis including $9 billion to support post-secondary students and recent graduates.

Included in this framework, the Canada Emergency Student Benefit (CESB), provides financial support to recent graduates and post-secondary students who are unable to find employment due to COVID-19, and who are not eligible for either the Canada Emergency Response Benefit (CERB) or Employment Insurance (EI). The CRA will also administer this benefit.

This benefit will provide $1,250 per month for eligible students or $2,000 per month for eligible students who have disabilities or dependents.

Applications will open late in May. The CESB is available for a maximum of 16 weeks from May 10 until August 29, 2020.

To deliver an efficient service experience, the CRA is ready to offer the same fast and easy application process that has delivered CERB payments to millions of Canadians.

The CESB represents an investment of $5.2 billion and is expected to reach approximately one million students.

Since the CESB is taxable, individuals will receive T4A slips on the amount of CESB they received in 2020.

CRA Capacity

Redirect: Commissioner/Frank Vermaeten

The CRA delivers benefits payments to millions of Canadians and business owners every year; this is at the core of our business.

Since the launch of CERB on April 6, 2020 there have been over 25million logins to the My Account portal, representing an increase of over 200% compared to logins for the same period last year.

Since the launch of CEWS on April 27, 2020 there have been over 41000 logins to My Business Account portal, representing an increase of over 150% compared to logins observed for same period last year.

The CRA also launched Charlie the Chatbot on March 27, 2020. Since its launch, Charlie has answered over 1.69 million questions and has had over 509,000 conversations with visitors on Canada.ca.

In April 2020, 1,124,311 individuals registered to the My Account portal, representing an increase of over 300% compared to registrations for the same period last year.

We are evolving our call centre services to better serve Canadians over the phone. The CRA has successfully transferred almost all of our call agents to remote work. This has allowed the CRA to return to the full capacity of agents serving Canadians. We have over 3,000 regular call centre agents serving Canadians and Canadian businesses.

In addition to our regular call centre employees, after a call out by the Commissioner to CRA employees, over 7,500 volunteered to answer questions about the subsidies. A total of 4,000 of these temporary call agents have been trained, equipped, and are providing support to Canadians that have general questions about the CERB, CESB, and CEWS.

We have kept our call centres open longer in order for Canadians to get the information they need.

The CRA is balancing the health and safety of all its employees, whether in processing centres or call centres, while maintaining service to Canadians. We have equipped most of our call centre agents with the tools they need to work from home. The CRA is balancing the health and safety of all its employees while maintaining service to Canadians.

Refunds related to electronically filed returns may be received in as little as 8 business days. While we are currently processing paper returns, some Canadians can expect delays due to the reduction in on-site staff.

For those taxpayers who have already filed a 2019 tax year paper return that has not been processed yet, the CRA will allow these taxpayers the option to also file their 2019 return electronically. This temporary measure that started April 20, 2020, was put into place to help circumvent any paper return processing delays.

The CRA understands that this measure will not address every situation as not all taxpayers will be able to file their returns electronically. For this reason, every effort is being made to focus on paper return processing while respecting public health authorities' guidelines.

CERB Repayment/CEWS Interplay

Redirect: Commissioner/Frank Vermaeten

The Government of Canada's priority has been to get money to those who urgently need it now. With this in mind, the Canada Revenue Agency (CRA) developed a CERB application process that was quick and easy to use. As a result, many Canadians received payments days after applying.

The third eligibility period for the Canada Emergency Response Benefit (CERB) will open today. This four-week period covers May 10 – June 6, 2020.

As a result of some parts of the country slowly allowing more businesses to reopen, and the successful launch of the Canada Emergency Wage Subsidy, more and more Canadians will be returning to work in the coming weeks. As such, the CRA encourages all applicants to carefully consider these changing conditions before they apply for the third eligibility period.

Canadians are required to repay the CERB if they no longer meet the eligibility requirements for the 4-week period in question. This could happen if an individual earns employment or self-employment income greater than $1000 earlier than expected.

Since the CERB is taxable, individuals will receive T4A slips on the amount of CERB they received in 2020. If an individual repays the CERB, the CRA will not issue a T4A slip for the amount that was repaid by December 31, 2020. The CRA is encouraging individuals to repay these amounts by December 31, 2020.

Beginning today, the CRA is offering a convenient way to repay the CERB with a few simple clicks using My Account. You can also repay the CERB by mailing a cheque or money order to the CRA. If you still have the original CERB cheque you can return the it by mail.

Added CERB/CEWS Integrity

Redirect: Commissioner/Ted Gallivan/Frank Vermaeten

The Government's priority has been to provide the Canada Emergency Benefit (CERB) to those in urgent need. With this in mind, the Canada Revenue Agency (CRA) developed a CERB application process that is quick and easy to use.

CERB

The CERB application process is similar to tax return processing in that it is attestation-based at the time the application is made.

As with other benefits administered by the CRA, we will undertake verification activities at a later date.

The CRA has records of who received the CERB, and for what period, from both the CRA and Service Canada. These will be used, along with tax slips received from employers, to validate eligibility.

In cases where claimants are found to be ineligible, they will be contacted to make arrangements to repay any applicable amounts. These amounts do not carry any penalties or interest but will need to be paid back.

The CRA has added more detailed information on our CERB web page to explain to Canadians why they may need to return or repay the CERB and how to do so.

CEWS

The government is taking unprecedented steps in order to support businesses and employees who are affected by COVID-19. We will ensure that anyone who tries to get around the rules, will be exposed to significant consequences.

Businesses that seek to engage in aggressive tax planning to exploit the Canada Emergency Wage Subsidy program and engage in fraudulent activity, can expect the Agency to apply a full range of compliance measures.

Journalism

Redirect: Commissioner/Geoff Trueman

The establishment of the independent Advisory Board on March 25, 2020, and the legislative changes that were proposed on April 17, 2020, puts the CRA in a position where it can begin to deliver on the Government's commitment to provide much needed support to journalism organizations.

Prior to those announcements, the CRA released technical guidance and the application form in December 2019 and has received 97 applications to date. Work commenced on reviewing those applications, albeit at a reduced capacity given the constraints imposed by the pandemic.

The CRA is working with the independent Advisory Board and is looking forward to this work extending to requesting and receiving its recommendations on whether an organization meets certain criteria required for designation.

The CRA is also currently in the process of updating its technical guidance and other products to make information available to journalism organizations.

Journalism organizations are encouraged to apply for the journalism measures by submitting their documents to the "My Business Account" portal during the COVID-19 pandemic, to help facilitate the receipt and review of their materials given current constraints on resources.

CVITP/Vulnerable Populations

Redirect: Commissioner/Frank Vermaeten

Canadians have told us that they want in-person support when trying to do their taxes and get their benefits. While we can't meet them face-to-face during this time, we're hoping that working with a volunteer online will be the next best thing.

To continue to serve the vulnerable populations, the CRA is working with community organizations to host free virtual clinics, on an interim basis to help Canadians that rely on this service, for both the Community Volunteer Income Tax Program (CVITP) and the Income Tax Assistance – Volunteer Program in Quebec.

As phase 1 of our approach, the clinics will also provide an opportunity to create awareness of the importance of filing taxes in order to receive benefits and credits such as those related to COVID-19.

As part of additional phases of this work, we continue to work with partner organizations to explore other ways to serve the vulnerable populations.

The CRA is also working with other government organizations and with CRA outreach officers to develop communications material for vulnerable populations such as indigenous communities.

Administrative Costs of COVID-19 Support Activities

Redirect: Commissioner

The financial impact of the COVID-19 crisis on the Canada Revenue Agency (CRA) will be significant given its central role in the implementation of many of the Federal Government's initiatives in response to this crisis as well as the pressure to ensure the least amount of disruption possible to its operations which, at the time, was approaching the peak of the 2019 Tax filling season.

The Treasury Board Secretariat (TBS) has asked all government departments and agencies, including the CRA, to track and report on costs associated with the management of the COVID-19 crisis.

To date, the CRA's efforts have been dedicated to ensuring the COVID-19 measures are well developed and implemented.

Costs are being tracked in the CRA systems both for the purchase of equipment and the time spent by employees.

Privacy

Redirect: Commissioner

Privacy management is the cornerstone of the CRA's normal business and a critical component of the Canada Revenue Agency's (CRA) Business Continuity Plan.

We are firmly committed to preserving the confidentiality and privacy of Canadian's personal information, while we continue to ensure that the CRA supports Canadians during this time.

The CRA has heightened awareness to ensure employees continue to protect Canadian's personal information when working virtually.

In keeping with the CRA's recently published Privacy Management Framework, the implementation of all COVIDrelated benefit programs has complied with the Privacy Act and have considered the Office of the Privacy Commissioner of Canada's (OPC)Framework for assessing initiatives in crisis situations.

The CRA has taken a proactive approach and briefed the OPC before each benefit was implemented.

Tax Evasion and Avoidance

Redirect: Commissioner/Ted Gallivan

The CRA has recently improved its compliance activities, operationally achieving over 91% of its cumulative $5.1B target for 2021-2022, three years ahead of schedule. The positive results were achieved by:

Strategically, this CRA crackdown on tax avoidance has brought hundreds of tax issues to the courts. These cases provide a roadmap; each year this government has introduced legislative changes to close loopholes and I look forward to both this government and this parliament continuing to identify areas of priority.

We have made investment of $1B and in addition, the Government has given the CRA the resources it needs in order to do it's work and we are starting to see results.

I have created an expert advisory panel which is giving us recommendations. In addition, we have tightened the rules of the Voluntary Disclosure Program to ensure that those who use the program do not have an unfair economic advantage over the majority of Canadians who file and pay their taxes in full and on time.

We have created country by country agreements for tax information. And we are working with the OECD and other international partners.

On CEWS and tax evasion

The government is taking unprecedented steps in order to support businesses and employees who are affected by COVID-19. We will ensure that anyone who tries to get around the rules, will be exposed to significant consequences.

Businesses that seek to engage in aggressive tax planning to exploit the Canada Emergency Wage Subsidy program and engage in fraudulent activity, can expect the Agency to apply a full range of compliance measures.

Union Negotiations

Redirect: Commissioner

I am confident that the CRA continues to negotiate with its union representatives in a way that is fair to employees and Canadians.

It is important to acknowledge that since the beginning of the COVID-19 crisis, countless Agency employees, members of both unions, have gone above and beyond to deliver critical services to Canadians.

The PIPSC-AFS and PSAC-UTE representatives have been and continue to be excellent collaborative partners in the implementation of the Government of Canada's COVID-19 emergency economic measures.

Audit and Compliance Stance

Commissioner/Ted Gallivan

Generally, the CRA will not start new audits or ask taxpayers currently under audit for information until further notice.

Audits will only be finalized and reassessments issued in exceptional circumstances. These could include, for example, cases involving a significant compliance issue, cases approaching a major milestone (such as statute-barred or treaty-barred date) or cases where the taxpayer requests a reassessment.

Taxpayer-requested adjustments will be reviewed and processed on a priority basis, and may require interaction with the taxpayer to verify the request.

The GST/HST Refund Integrity Program will continue operating to make sure GST/HST credits are not delayed unnecessarily.

As noted above, most administrative income tax actions due after March 18, 2020, have been suspended until June 1, 2020, this includes requests for information made during the course of CRA audits. Compliance staff will contact taxpayers with a new due date in cases where the information is still needed.

Changes to Filing/Payment Deadlines

Commissioner/Frank Vermaeten

Individuals / self-employed:

The deadline to file your 2019 individual income tax and benefit returns has been extended to June 1, 2020.

The deadline to pay any balance due for your individual income tax and benefit return for 2019 has been extended from April 30, 2020, to September 1, 2020. This means you will not be assessed any penalties or interest if your balance due is paid by September 1, 2020.

For self-employed individuals or those who have spouses or common-law partners that are self-employed, the deadline to pay any balance due for your individual income tax and benefit return has been extended from April 30, 2020, to September 1, 2020.

For individuals who pay income tax by instalments, the June 15, 2020 instalment payments will be deferred until September 1, 2020. You will not be assessed any penalties or interest if your instalment is paid by September 1, 2020.

Businesses:

The deadline for businesses to pay any income tax amounts that become owing or due after March 18, 2020 and before September 1, 2020 has been extended to September 1, 2020. This means you will not be assessed any penalties or interest if your balance due is paid by September 1, 2020.

Motion – April 11, 2020

That, notwithstanding any standing order, special order or usual practice of the House:

  1. the application of Standing Orders 15, 17 and 56.1 be suspended for the current sitting;
  2. the government responses to petitions 431-00046 to 431-00123 be tabled immediately and that those to questions on the Order Paper numbered Q-260 to Q-308 and Q-310 to Q-368 be made into orders for returns and that the said returns be tabled immediately;
  3. Tuesday, March 24, 2020, and this day shall not be considered as sitting days for the purposes of Standing Orders 34(1), 37(3), 51(1) and 110 and subsection 28(12) of the Conflict of Interest Code for Members of the House of Commons;
  4. a bill in the name of the Minister of Finance, entitled A second Act respecting certain measures in response to COVID-19, be deemed to have been introduced and read a first time and ordered for consideration at second reading later this day;
  5. Statements by Ministers be taken up immediately following the adoption of this order and that a member of the Green Party also be permitted to reply to the statement;
  6. following the responses to the ministerial statement, the House shall resolve itself into a committee of the whole to consider matters related to the COVID-19 pandemic for a period not exceeding two hours and provided that, during the proceedings of the committee, (i) the Speaker may preside, (ii) the Chair may preside from the Speaker's chair, (iii) the Chair shall call members in a fashion consistent with the proportions observed during Oral Questions, (iv) no member shall be recognized for more than five minutes at a time which may be used for posing questions to a minister of the Crown or a parliamentary secretary acting on behalf of the minister, (v) members may be permitted to split their time with one or more members by so indicating to the Chair; and at the conclusion of the time provided for the proceedings, or when no member rises to speak, whichever is earlier, the committee shall rise;
  7. when the committee of the whole rises, the House shall begin debate on the motion for second reading of the bill referred to in paragraph (d); a member of each recognized party and a member of the Green Party may speak to the said motion for not more than 20 minutes, followed by 10 minutes for questions and comments, provided that members may be permitted to split their time with another member; and, at the conclusion of the time provided for the debate or when no member rises to speak, whichever is earlier, all questions necessary to dispose of the second reading stage of the bill shall be put without further debate or amendment, provided that, if a recorded division is requested, it shall not be deferred and that, if the bill is adopted at second reading, it shall be referred to a committee of the whole; deemed considered in committee of the whole, deemed reported without amendment, deemed concurred in at report stage on division, and deemed read a third time and passed on division;
  8. when the bill referred to in paragraph (d) has been read the third time and passed, the House shall adjourn until Monday, April 20, 2020, provided that, for the purposes of any standing order, it shall be deemed adjourned pursuant to Standing Order 28, and, for greater certainty, the provisions of paragraphs (m) to (p) of the order adopted on Friday, March 13, 2020, and subparagraph (f)(ii) and paragraphs (i) to (m) of the order adopted on Tuesday, March 24, 2020, remain in effect;
  9. during the period the House stands adjourned, the House may be recalled, under the provisions of Standing Order 28(3), to consider measures to address the economic impact of COVID-19 and the impacts on the lives of Canadians;
  10. if, during the period the House stands adjourned pursuant to this order, the Speaker receives a notice from the House leaders of all four recognized parties indicating that it is in the public interest that the House remain adjourned until a future date or until future notice is given to the Speaker, the House will remain adjourned accordingly, provided that, in the event of the Speaker being unable to act owing to illness or other cause, the Deputy Speaker or either of the Assistant Deputy Speakers shall act in the Speaker's stead for all the purposes of this paragraph;
  11. during the period the House stands adjourned pursuant to this order, any return, report or other paper required to be laid before the House in accordance with any act of Parliament, or in pursuance of any order of this House, may be deposited with the Clerk of the House, on any Wednesday provided that committee reports presented pursuant to an order of this House may be deposited at any time; such return, report or other paper shall be deposited electronically and shall be deemed for all purposes to have been presented to or laid before the House;
  12. during the period the House stands adjourned pursuant to this order, the Standing Committee on Health, the Standing Committee on Finance, the Standing Committee on Government Operations and Estimates, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities and the Standing Committee on Industry, Science and Technology may hold meetings for the sole purpose of receiving evidence related to the COVID-19 pandemic, provided that, at such meetings, (i) committee members shall attend and witnesses shall participate via either videoconference or teleconference, (ii) committee members attending by videoconference or teleconference shall be counted for the purposes of quorum, (iii) proceedings shall be made available to the public via the House of Commons website, (iv) notices of membership substitutions pursuant to Standing Order 114(2) may be filed with the clerk of each committee by email; and further provided that these committees (i) shall each meet at least once per week, unless the whips of all recognized parties agree not to hold a meeting, (ii) may each receive evidence which may otherwise exceed the committee's mandate under Standing Order 108, (iii) shall meet within 48 hours of the receipt by email, by the clerk of the committee, of a request signed by any four members of the committee;
  13. the Standing Committee on Procedure and House Affairs be instructed to study ways in which members can fulfill their parliamentary duties while the House stands adjourned on account of public health concerns caused by the COVID-19 pandemic, including the temporary modification of certain procedures, sittings in alternate locations and technological solutions including a virtual Parliament, provided that (i) during the period the House stands adjourned pursuant to this order, the provisions applying to committees enumerated in paragraph (l) shall also apply to the committee, however, the committee may consider motions related to the adoption of a draft report in relation to this study, (ii) the committee be instructed to present a report no later than May 15, 2020;
  14. in addition to receiving evidence, the committees enumerated in paragraphs l) and m) of this order, while meeting by videoconference or teleconference, may also consider motions requesting or scheduling specific witnesses and these motions shall be decided by way of a recorded vote;
  15. for the purposes of committee meetings convened under paragraphs (l) and (m), priority for the use of House resources shall be given, in the following order, to (i) meetings of the Standing Committee on Health, (ii) meetings of the Standing Committee on Finance, (iii) meetings which are specified by the agreement of the whips of all recognized parties, (iv) all other meetings, in the order in which the meetings were convened;
  16. the House call on the Auditor General of Canada to conduct an audit of (i) the spending undertaken pursuant to the Public Health Events of National Concern Payments Act, (ii) the exercise of the provisions of the Financial Administration Act, and the Borrowing Authority Act enacted by Part 8 of the COVID-19 Emergency Response Act, and that the Auditor General report his findings to the House no later than June 1, 2021;
  17. the House call upon the government to take such measures as are necessary to ensure that the Auditor General has sufficient resources to conduct the work he has been asked by the House to do, including the audits called for in this order and the orders adopted on Wednesday, January 29, 2020, and Friday, March 13, 2020;
  18. [Amended] the government implement measures without delay to address gaps in the Canada Emergency Response Benefit, or other programs, existing or proposed, to address the needs of seasonal workers, those who have exhausted their EI benefits, students, owner/operators, those who continue to receive a modest income from part-time work, royalties, and honoraria, and that, in addition, the government work to ensure essential workers who receive low wages will receive additional income support during this time of crisis, and commit that those who have applied in good faith for and received benefits through CERB or other programs to support them through this crisis will not be unjustly penalized;
  19. the government implement, in the short-term, support measures for Canadian small and medium-sized enterprises, which will be partially non-refundable, with the primary objective of maintaining jobs and reducing debt related to fixed costs, while maintaining access to liquidity in the form of loans; and
  20. the House note that the measures included in An Act to amend the Financial Administration Act (special warrant), the COVID-19 Emergency Response Act, and the bill referred to in paragraph (d) are for the purpose of dealing with the unique circumstances and the time period of the COVID-19 situation and recovery.

Issue notes

COVID-19 expenditures

Issue statement:

What is the financial impact of managing the COVID-19 crisis on the Canada Revenue Agency?

Key messages:

To date:

Administrative Measures

Issue statement:

The Canada Revenue Agency is committed to helping Canadians navigate these uncertain times.

Key messages:

Changes to filing/payment deadlines:

Changes to approaches in collections / audits:

COVID-19 Support:

Canada Emergency Response Benefit (CERB)

Issue statement:

The CRA is supporting Canadians through the COVID-19 pandemic.

Key messages:

CERB Repayment / CEWS Interplay

Issue statement:

As some parts of the country slowly reopen in the coming weeks, more Canadians may be returning to work. In addition, employers may rehire under CEWS. CERB applicants are encouraged to consider these changing conditions before applying for the third eligibility period. In some cases, the CERB may need to be repaid.

Key messages:

CERB/CEWS/CESB Integrity

Issue statement:

The CRA will ensure the integrity of its programs.

Key messages:

CEWS

Canada Emergency Student Benefit (CESB)

Issue statement:

The CRA is providing support to post-secondary students and recent graduates.

Key messages:

Canada Emergency Wage Subsidy (CEWS)

Issue statement:

The CRA has taken steps to ensure the success and the integrity of the Canada Emergency Wage Subsidy (CEWS)

Key messages:

Fact Sheet: Emergency Response Benefits - Canada Revenue Agency

Canada Emergency Response Benefit (CERB)

As of 11:59PM Sunday May 10th:

As of 11:59PM Thursday May 7th:

Canada Emergency Wage Subsidy (CEWS)

As of 11:59PM Sunday May 10th:

Special GST/HST Credit

CCB Top Up

Filing Extensions

Table 1: GST/HST Credit payment comparison (year over year)
GST/HST Credit Issue Period Number of GST/HST Credit Payments Number of Unique GST/HST Credit Recipients GST/HST Credit Payment Amounts GST/HST Credit Number of Unique Recipients 65+ GST/HST Credit Payment Amounts to Recipients 65+
April 2020 21,441,340 11,899,450 $6,335,988,000.00 3,117,530 $1,580,317,000.00
April 2019 9,464,120 9,448,850 $1,226,039,000.00 2,422,280 $313,750,000.00
April 2018 9,478,830 9,467,820 $1,218,645,000.00 2,385,430 $305,284,000.00
  1. All data in the table are as of April 30th, 2020
  2. Data are subject to change as tax returns are (re)assessed
  3. Data were compared to Bank of Canada payment data and previous extracts of GST/HST Credit data for quality assurance
  4. Counts are rounded to the nearest ten and amounts are rounded to the nearest thousand

CRA Capacity

Issue statement:

The CRA is balancing the health and safety of all its employees while maintaining service to Canadians in the face of unprecedented demands on the CRA’s systems and the Government’s telephone infrastructure.

Key messages:

CVITP / Vulnerable Populations

Issue statement:

The CRA is supporting vulnerable populations during COVID-19.

Key messages:

Journalism

Issue statement:

The CRA is working to deliver on the Government’s commitment to provide support to journalism organizations.

Key messages:

Privacy management during the COVID-19 pandemic

Issue statement:

The CRA is protecting Canadians’ personal information during its response to the COVID-19 pandemic.

Key messages:

Security and telework

Issue statement:

How does the CRA ensure that the taxpayer information is protected if employees are working from home?

Key messages:

Cybersecurity Measures

Further explanatory security notes

Tax Evasion and Avoidance

Issue statement:

With an investment of $1B, the Government has given the CRA the resources it needs in order to do its work and we are starting to see results.

Key messages:

Canada Revenue Agency - Union Negotiation Update

Issue statement:

The PIPSC-AFS and PSAC-UTE representatives are excellent collaborative partners in the implementation of the Government of Canada's COVID-19 emergency economic measures.

Key messages:

Context

The Agency is a separate employer and is responsible for collective bargaining with its two bargaining agents: the Professional Institute of the Public Service of Canada – Audit, Financial and Scientific Group (PIPSC-AFS), and the Public Service Alliance of Canada – Union of Taxation Employees (PSAC-UTE), including establishing its negotiation mandates. In turn, the Agency’s Board of Management, pursuant to its oversight authority, recommends these negotiating mandates to the President of the Treasury Board for approval.

Since December 2012, the Agency must have negotiating mandates approved by the Treasury Board. This measure ensures alignment with broad Government of Canada objectives for the management of the federal public sector.

Professional Institute of the Public Service of Canada – Audit, Financial and Scientific Group (PIPSC-AFS)

The PIPSC-AFS Group bargaining unit has approximately 12,000 members, which primarily consists of Auditors (AU), Computer Systems (CS), and Management Group (MG-AFS) employees.

The current collective agreement between the Agency and the PIPSC-AFS came into effect on August 23, 2019, and expires on December 21, 2022.

Public Service Alliance of Canada – Union of Taxation Employees (PSAC-UTE)

The PSAC-UTE Program Delivery and Administrative Services bargaining unit has approximately 29,000 members. The bargaining unit consists of two occupational groups: the Service Program group (SP) and the Management Group (MG-SPS).

The current collective agreement between the Agency and the PSAC-UTE expired on October 31, 2016. On the same day, the PSAC-UTE served the Agency with a notice to bargain.

In terms of the current round of negotiations, the Agency’s collective bargaining team met with the union for six bargaining sessions and two mediation sessions between June 2018 and May 2019.

During the last mediation session held in May 2019, the union declared an impasse in the bargaining process and then filed a request for the establishment of a public interest commission (PIC), the method of resolution chosen by the union. The PIC is established under the Federal Public Sector Labour Relations Act.

On January 6 and 20, 2020, the Agency and the PSAC-UTE participated in a PIC hearing. On April 29, 2020, the PIC Chair issued the final report which includes recommendations on some of the outstanding issues between the parties. The recommendations included in this report are not binding; however, they may assist the parties in reaching a settlement through further negotiations.

Next steps

The Agency is analyzing the report’s recommendations and will reach out shortly to the PSAC-UTE to discuss next steps.

In order to continue its negotiations, we will need to obtain a revised mandate from the Treasury Board, and to this end, discussions have been initiated.

It is important to note that since the beginning of the COVID-19 crisis, Agency employees, members of both unions, have been actively involved in the delivery of critical services to Canadians. The PIPSC-AFS and PSAC-UTE representatives have been and continue to be excellent collaborative partners in the implementation of the Government of Canada's COVID-19 emergency economic measures.

While we are currently focusing our attention and efforts on providing critical services to Canadians, the Agency remains committed to reaching an agreement with PSAC-UTE that have been without a contract of employment for more than 3 years.

The Agency therefore hopes to reach an agreement that is fair to employees and Canadians, and we believe that the recommendations in the PIC report can help the parties achieve this.

Meeting 10

43rd Parliament, 1st Session

Friday, May 8, 2020, 11 a.m. to 1:00 p.m.
Webcast
Videoconference

Link to video: https://parlvu.parl.gc.ca/Harmony/en/PowerBrowser/PowerBrowserV2/20200508/-1/33187?Language=English&Stream=Video

Government’s Response to the COVID-19 Pandemic

Membership: Committee members of the past session

11:00 a.m. to 12:00 p.m.

Appearing

  • Hon. Jean-Yves Duclos, P.C., M.P., President of the Treasury Board

Witnesses

  • Treasury Board Secretariat
    • Nancy Chahwan, Chief Human Resources Officer
    • Francis Bilodeau, Acting Chief Information Officer of Canada
    • Marcia Santiago, Executive Director, Expenditure Strategies and Estimates
    • Kathleen Owens, Assistant Comptroller General, Acquired Services and Assets Sector, Office of the Comptroller General

12:00 p.m. to 1:00 p.m.

  • Canada Employment and Immigration Union
    • Eddy Bourque, National President
  • Public Service Alliance of Canada
    • Chris Aylward, National President
    • Liam McCarthy, Director, Negotiations and Programs Branch
  • Service Employees International Union Healthcare
    • Sharleen Stewart, President
  • Union of Taxation Employees
    • Marc Brière, National President

11:00 a.m. to 12:00 p.m.

The Chair (T. Lukiwski, CPC) opened the meeting to confirm that the Whips have agreed to the Committee’s plan to meet Monday and Friday of next week. Future committee business will be discussed at the end of today’s meeting.

First panel began with opening remarks from the President of the Treasury Board.

President of Treasury Board – Hon. Jean-Yves (J-Y) Duclos

The Government’s response to the pandemic with relation to public servants working remotely. The GoC has directed their employees to work from home whenever possible to comply with public health advice. Regardless of where they work, they are continuously working daily to provide critical services and new measures quickly in response to the COVID-19 pandemic. CRA has rolled out services such as the CERB and the CEWS. By May 5, there has been more 7.5 million applicants, 10.7 processed applications. Over 20,000 Canadians brought home safely and armed forces have been helping in long term care homes in Ontario and Quebec as they have been hard hit. Since mid March, these workers have been working from home. Departments have identified their critical services. There are jobs delivering services where working remotely is not feasible, for these situations, employers are making sure that the workers are safe. Many public servants working hard to deliver services to the public. Some require additional equipment such as monitors, mobile devices and laptops. Requests for equipment are being looked at on a case by case basis. With respect to using the government internet network, internet bandwidth increased. Anyone not supporting critical services should limit their use of the network. Public cloud services are being asked to use for unclassified work and use the BBM enterprise application to securely message for up to protected B work. We are also working with thousands of home workers in order to better handle classified information to ensure that it is sent and handled in a safe way. Understand that working remotely for long periods is hard on mental health. We have therefore put employees in contact with mental health services to encourage them to stay healthy and productive. Setting a schedule and staying connected with colleagues and loved ones.

Kelly Block (CPC)

Thanked the public servants working remotely and in the office. Working remotely has its own set of challenges that we are trying to overcome everyday. Responsibility that TBS has in overseeing government contracts. Does TBS provide guidelines for government contracts?

K Block (CPC): Guidelines both before and during COVID-19. What has been added?

K Block (CPC): Contracts awarded for PPE?

K Block (CPC): One company in particular was awarded a 10 year contract. How does 10 years fit in with emergency limits just stated?

K Block (CPC): 2 billion for PPE and supplies. Contracts that have been struck, these contracts allow for pre-paying?

K Block (CPC): How much can be pre-paid?

P Weiler (Lib): We are all adjusting to working remotely. How has the TBS provided flexibility to departments to be able to respond to COVID-19 immediately?

P Weiler: What actions have been taken to increase the teleworking capacity? Has there been success?

P Weiler (Lib): Productivity of public servants is great. During these times, essential Canadians. What actions has the TBS taken to help mental health?

J Vignola (Vice-Chair, BQ): 280,000 workers – how many are working remotely?

J Vignola (BQ): Many have needed equipment. In terms of cost, how much has that cost so far to provide them with the equipment they need and what will happen to it once they return to the office.

J Vignola (BQ): Many changes brought about by this crisis? Awhile ago, shared workspace initiative put in place, was it popular? What were the lessons learned?

J Vignola (BQ): There is quite a large number of buildings – what happens if they aren’t put to use?

M. Green (NDP – National Revenue Critic): Collective agreements expired? How many agreements are there and how many employees are affected?

M. Green (NDP): For those expired, how long have they been expired? How will payback be done?

M Green (NDP): The federal public service 288,000 employees – has COVID-19 had impact on term, casual and student employees in federal public service?

M Green (NDP): Impact on composition of public service in medium to long term?

K McCauley (CPC): How are you ensuring there are no privacy breaches and how is it being tracked?

K McCauley (CPC): How are you following up on that? Last year was horrible for privacy breaches and the worst department was TBS with over 10%.

K McCauley (CPC): Do we know how many are working from home or on paid leave?

K McCauley (CPC): How much are we paying for for the public servants to work from home? i.e. they must be paying the internet access for employees. When will we start seeing people having access to access to information requests?

Chair: Out of time. Please provide response in writing.

F Drouin (Vice-Chair, Lib): Thanked civil servants. What measures were taken? How is the department informing civil servants on sick leave who would need to take care of their partners?

F Drouin (Vice-Chair, Lib): Represent civil servants who work in English and French. As MPs we can see there is a need for translation services. How can public servants work in their language of choice?

Z Aboultaif (CPC): Shortages of PPE. Are you aware we had a few flights that came back empty?

Z Aboultaif (CPC): Can you provide the manifest of all the flights. Air Canada and Cargo Jets. Making this request.

Z Aboultaif (CPC): Can you ask that department for me?

Z Aboultaif (CPC): Government purchase directly from suppliers or other countries. Have contracts directly with other countries?

Z Aboultaif (CPC): how are we making sure our armed forces are getting the equipment needed while they are helping?

Witnesses were excused. Second panel began.

Second Panel: 12:04 p.m.

Mr. Eddy Bourque, National President Canada Employment and Immigration Union: We have 2000 plus members. Our member work on the delivery of OAS , CPP and Citizenship. We have been responsible to respond to the EI influx. Our employees are mainly women. Our employees have been working in different call centres. A surge in EI claims has placed a great amount of pressure on our members. We have had an increase of verbal abuse. We want to make sure that there are enough PPEs for our members. Downtime in call, centres is inadequate. Our members have to receive the proper training. Members are reporting that they are being asked to return to unsafe working conditions. Many are still continuing to do their works while under great pressures. Communication between unions and the employers have to continue.

Mr. Chris Aylward, National President Public Service Alliance of Canada: I commend the Government for their rapid response on COVID-19. The Government had kept in regular communications with us. Our members at the CRA gave processed millions of applications for benefits. Our members are putting Canada first. 40,000 Working without a contract. The Government implemented lightning changes with the help of our members. Our member deserve a basic fair agreement. On a separate matter health and safety of our member should be brought on the front line. The Government has supported worked place mental services. Action such as the EI, CERB and CEBA have been welcomed. People are more conscious of their own vulnerability. The Government has made a great effort to support Canadians.

Ms. Sharleen Stewart, President Service Employees International Union Healthcare: The SCIU has 60,000 in the Province of Ontario. Our system of care has failed. Provinces like Ontario overlooked the Long Term Care centres. The overhaul of long term care in Canada. The death rate in for profit homes are higher than in not for profit homes. We should reveal the failings of our systems. PPEs should be available at all time. Employment in long term care facilities should be become permanent. Providing higher level of font line staff. The failed experiment of for profit homes should come to an end. Our members deserve to retire with economic security the deserve to be offered fulltime positions. When the lobbyist of the form for profit homes come knocking at your door. Think about those who have lost their loved ones in this pandemic.

Mr. Marc Brière, National President Union of Taxation Employees: The Union of Taxation Employees members are from the Canada Revenue Agency. 20,000 of these members work at the CRA. I would like to thank the employees who have stepped to help in these difficult situations. We set aside our collective bargaining with the Government to deliver the services the services that were needed. It is important for us to mention that many of the members have been assigned with new task. We implement CERB, CEWS, CCB and Tax returns. UTE was conducting strike vote before the crisis. But in the light of the increase in demand during the crisis, we suspended our ballot to support the CRA. The CRA acted quickly to provide assistance. When the CERB was implemented the CRA called on their employees to step up and the response was a huge success. Our members have also been asked to complete verification and eligibility tasks. We knew that it would be a difficult task and our members have responded happily to help-. We respectfully ask that the Federal Government to respond and act quickly to produce a fair collective agreement.

Kelly McCauley (CPC): How many of your workers are working from home? How many are working on past cases?

Kelly McCauley (CPC): What is the difference between critical and non-critical work?

Kelly McCauley (CPC): Will the Government be able to provide a safe environment for a return to work?

Kelly McCauley (CPC): What will be the average salary of your members?

Irek Kusmierczyk (Lib.): How have the employees of the CRA managed to strike a balance between work life and work?

Greg Fergus (Lib.): On race. Should we desegregate the figure for employees working Long Term Care homes?.

Julie Vignola (BQ): About ergonomics, have you had a lot of complaints from your members?

Julie Vignola (BQ): Was the employer able to accommodate these requests?

Julie Vignola (BQ): What has been the impact on Long term Care Homes with regard to Health transfers?

Julie Vignola (BQ): My question was about was about a reduction of 22% of the health transfer since the 1990s. What impact has that had on Provinces?

Xavier Barsalou-Duval (BQ): At the CRA in particular. Have you looked at adding staff in support of the demand?

Matthew Green (NDP, Critic): Loss in the Long Term Care homes. 3,980 deaths of them to LTCs. How big is Chartwell?

Matthew Green (NDP, Critic): Lobbying efforts: Why would they lobby for extended EI?

Matthew Green (NDP, Critic): What can we do federally to start a national enquiry to protect seniors?

Matthew Green (NDP, Critic): TBS Plan back to work for reintegration – have you been contacted consulted and are you satisfied

Witnesses excused. At 12:57.

Committee Business.

Meetings after May 15, 2020:

Proposed: Distribution of Medical Supplies (Minister of Health, Canada Post, VP Amazon, Canada Postal Services Workers union); following meeting is on Cybersecurity (Minister for Digital Government, SSC President and officials, CSEC, and A/Chief Information Officer, Mr. Bilodeau).

Whips are announcing the meetings one week in advance. Trying to obtain clarification to see if committees will meet the May 18 2020 statutory holiday.

Standing Committee on Government Operations and Estimates - Evidence - Number 009 - Monday, May 4, 2020

Speaker's permission

Published under the authority of the Speaker of the House of Commons.

The proceedings of the House of Commons and its committees are hereby made available to provide greater public access. The parliamentary privilege of the House of Commons to control the publication and broadcast of the proceedings of the House of Commons and its committees is nonetheless reserved. All copyrights therein are also reserved.

Reproduction of the proceedings of the House of Commons and its committees, in whole or in part and in any medium, is hereby permitted provided that the reproduction is accurate and is not presented as official. This permission does not extend to reproduction, distribution or use for commercial purpose of financial gain. Reproduction or use outside this permission or without authorization may be treated as copyright infringement in accordance with the Copyright Act. Authorization may be obtained on written application to the Office of the Speaker of the House of Commons.

Reproduction in accordance with this permission does not constitute publication under the authority of the House of Commons. The absolute privilege that applies to the proceedings of the House of Commons does not extend to these permitted reproductions. Where a reproduction includes briefs to a committee of the House of Commons, authorization for reproduction may be required from the authors in accordance with the Copyright Act.

Mothing in this permission abrogates or derogates from the privileges, powers, immunities and rights of the House of Commons and its committees. For greater certainty, this permission does not affect the prohibition against impeaching or questioning the proceedings of the House of Commons in courts or otherwise. The House of Commons retains the right and privilege to find users in contempt of Parliament if a reproduction or use is not in accordance with this permission.

Also available on the House of Commons website at the following address: https://www.ourcommons.ca

Standing Committee on Government Operations and Estimates - Evidence - Number 010 - Friday, May 8, 2020

Speaker's permission

Published under the authority of the Speaker of the House of Commons.

The proceedings of the House of Commons and its committees are hereby made available to provide greater public access. The parliamentary privilege of the House of Commons to control the publication and broadcast of the proceedings of the House of Commons and its committees is nonetheless reserved. All copyrights therein are also reserved.

Reproduction of the proceedings of the House of Commons and its committees, in whole or in part and in any medium, is hereby permitted provided that the reproduction is accurate and is not presented as official. This permission does not extend to reproduction, distribution or use for commercial purpose of financial gain. Reproduction or use outside this permission or without authorization may be treated as copyright infringement in accordance with the Copyright Act. Authorization may be obtained on written application to the Office of the Speaker of the House of Commons.

Reproduction in accordance with this permission does not constitute publication under the authority of the House of Commons. The absolute privilege that applies to the proceedings of the House of Commons does not extend to these permitted reproductions. Where a reproduction includes briefs to a committee of the House of Commons, authorization for reproduction may be required from the authors in accordance with the Copyright Act.

Mothing in this permission abrogates or derogates from the privileges, powers, immunities and rights of the House of Commons and its committees. For greater certainty, this permission does not affect the prohibition against impeaching or questioning the proceedings of the House of Commons in courts or otherwise. The House of Commons retains the right and privilege to find users in contempt of Parliament if a reproduction or use is not in accordance with this permission.

Also available on the House of Commons website at the following address: https://www.ourcommons.ca

Report on Committee Hearings

Name of Committee: Standing Committee on Government Operations and Estimates

Report prepared by: Patrick Gray, Treasury Board of Canada Secretariat

Date and time: May 4, 2020; 2:02 p.m. – 3:59 p.m.

Location: Webcast

Subject: The Government’s Response to the COVID-19 Pandemic (Allocation of Emergency Benefits)

Witnesses

Highlights

The Committee met for the fourth time as part of its study on the Government’s Response to the COVID-19 Pandemic. Supported by testimony from Finance Canada and TBS officials, the Committee considered the allocation of federal emergency benefits.

Questions to TBS witnesses focused on changes to the Supply and Estimates process, and on whether the Treasury Board has continued to play a role in overseeing spending. Neither issue was raised or discussed in a contentious manner, though members will likely continue to expect and ask questions about transparency, oversight, and accountability as far as financial procedures are concerned.

The vast majority of questions were directed to Finance Canada witnesses and dealt with the eligibility and accessibility of federal emergency benefits, their costs, duration, and susceptibility to change as time goes on. Members also asked about the prospect of future fiscal updates or budgets, specific details on supports for the energy sector (CPC), and the eligibility of businesses that make use of tax havens (BQ).

Follow-ups

There were a number of questions to which follow-up responses were committed, either voluntarily by witnesses, or at the Chair’s request when insufficient time was available for a complete response. All undertakings will be verified against the meeting transcript.

There were no follow-up engagements for TBS.

  1. How much financial support is available to businesses who have re-tooled toward PPE production? (Kelly Block, CPC)
    1. Mr. Marsland committed to providing a response
  2. More detail on effects on unfunded liabilities of public service pension funds (Kelly McCauley, CPC)
    1. Ms. McDermott committed to providing a response
  3. More information on increases to Crown Corporation debt (Kelly McCauley, CPC)
    1. No time for response
  4. Number of applicants to the CEWS (Irek Kusmierczyk, LPC)
    1. Mr. Marsland committed to providing a response
  5. CERB eligibility for sole proprietors who do not pay themselves a wage (Yasmin Ratansi, LPC)
    1. No time for response
  6. Information on the tax gap (Julie Vignola, BQ)
    1. Mr. Marsland committed to providing a response
  7. Information on CERB eligibility for seasonal workers (Xavier Barsalou-Duval, BQ)
    1. Ms. McDonald committed to providing a response

Next Steps

The Committee concluded the meeting with a 15-minute public discussion on future business. The Chair and Liberal members requested that efforts be made to minimize instances in which witnesses are invited to provide testimony that another Standing Committee may already have received. Kelly McCauley (CPC) expressed great interest in hearing again from the Minister and Deputy Minister of PSPC in order to question them on recent perceived contradictions in messaging.

Forward outlook:

Meeting Summary

Questions and Answers

Questions from CPC members focused on:

Questions from LPC members focused on:

Questions from the BQ focused on:

Questions from the NDP focused on:

Report on standing committee hearing

Name of Committee: Standing Committee on Government Operations and Estimates (House of Commons)

Report prepared by: Brent Mills, Parliamentary Analyst, 613-543-6857

Date and time: Monday, 4 May 2020 (2:00 p.m. to 4:00 p.m.)

Subject: The government’s response to the COVID-19 pandemic

Overview and Key Issues:

The Committee met in order to hear from officials from the Department of Finance and Treasury Board of Canada Secretariat as it studied the government’s response to the COVID-19 pandemic. For additional information, please consult the meeting notice.

The tone of the meeting was cordial and professional, with questions focusing on eligibility requirements of the COVID-19 support programs, risk modelling, future programs and the economic recovery post-COVID-19.

Below is a summary of the exchanges that took place over the course of the meeting.

Conservative Party (CPC)

Bloc Québécois (BQ)

New Democratic Party (NDP)

Liberal Party (LPC)

Next Steps:

The next OGGO meeting will be held from 11:00 AM – 1:00 PM on Friday, 8 May 2020. The meeting times for next week will be published soon.

Follow Ups:

The following questions will require a written answer to be tabled with the clerk:

Parliamentary Affairs will review the transcripts and task these questions accordingly.

Special Committee on the COVID-19 Pandemic (COVI) – Committee of the Whole – May 5, 2020

At approximately 12:01 p.m., the Committee was called to order by the Chair (Speaker of the House). The Chair called for the observation of a moment of silence for the Canadian Armed Forces members who lost their lives off the coast of Greece. The Dominion Carrilonneur today is conducting a concert in the Peace Tower to commemorate the anniversary of the Liberation of the Netherlands in the Second World War.

Statements by Ministers:

Petitions:

N/A

None for CRA

Topics: Calls for a study into “national opt out program”; Fentanyl issue (safe sources will reduce criminal activity); Firearms regulations (petitioners note this will not eliminate gun violence. Stop targeting law abiding firearms holders, instead should be focused on gang violence).

Question to Ministers:

Paul Hus (CPC): Why is the PM misleading Canadians on COVID-19?

Paul Hus (CPC): Does the PM think that gangs are going to hand in their weapons?

Paul Hus (CPC): We have heard that dangerous criminals were released during the pandemic. Can the Prime Minister tell us whether any dangerous criminal was released during this pandemic?

Paul Hus (CPC): Will Canada call on the Chinese government to be more transparent?

Yves-François Blanchet (BQ): Increase Old Age Security up to 100 dollars a week. What is the PM doing to find a solution to help seniors?

Yves-François Blanchet (BQ): Regarding the cost of groceries for seniors. When will seniors receive something to help them with their cost increases?

Laurel Collins (NDP): Will PM remove restrictive eligibility criteria to some of the benefits?

Laurel Collins (NDP): Why are some Canadians being left out?

Laurel Collins (NDP): Offshore tax havens. Will the Government prevent companies who use offshore tax havens from receiving benefit?

Laurel Collins (NDP): Regarding solutions for the homelessness. Will the Federal government produce a strategy for the homeless?

Joel Godin: Point of Order. Could not hear the PM:

Mr. Scheer (CPC): Gap in the wage subsidy program. Because of the rules were designed by to prevent some companies from accessing the benefits. When will the PM fix that?

Mr. Scheer (CPC): The plan to help businesses with rent, Will PM amend these programs to provide more flexibility?

Mr. Scheer (CPC): People receiving CERB. Progressive system to help people get back to work. Will the PM build in some flexibility to help people go back to work?

Marilyn Gladu (CPC): When will the Government keep their promise to seniors?

Marilyn Gladu (CPC): Essential travel. When will the rules be clarified to CBSA about border crossing?

Marilyn Gladu (CPC): Owner not eligible for benefits. What is the Government going to do to help those who are not eligible?

Mel Arnold (CPC): Fisheries and Oceans When will Minister start opening the fisheries?

Mel Arnold (CPC): Will minister support the fisheries?

Mel Arnold (CPC): Seniors: Why has this government to not provided support for seniors?

Mel Arnold (CPC): What is the Government doing to help students seeking employment in Agriculture?

Rachael Harder (CPC): Would the ban have stopped the massacre in Nova Scotia?

Rachael Harder (CPC): Will criminals see their guns seized?

Rachael Harder (CPC): Agriculture: Why is the government doing to help beef producers?

Rachael Harder (CPC): Meat packing plants. Cattle farmers. When will government produce a set-aside strategy for beef producers?

James Bezan (CPC): Update as to cyclone helicopter crash.

James Bezan (CPC): On what date did the Minister get his first update of the pandemic in China?

James Bezan (CPC): In early January, it was made aware of the outbreak. When were you made aware?

James Bezan (CPC): When did you give the information to the appropriate officials? How long after you were briefed?

Gabriel Ste-Marie (BQ): Andre Laroux who is an expert in Business tax haven said that there is Canadian Money in 12 tax havens. Will the government take this opportunity to make the use of tax Havens illegal?

Gabriel Ste-Marie (BQ): Indeed , I am very impatient, because each time I discuss the legal use of tax havens by businesses. The Minister does not respond to that specific issue. Denmark and Poland have taken action, even France. Government is giving a lot of banks liquidity. Banks using tax havens to shield their profits. When will the government seize this opportunity to make the use of tax Havens illegal?

Gabriel Ste-Marie (BQ): Immoral use of tax havens. When will the government seize this opportunity to make the use of tax havens illegal?

Heather McPherson (NDP): meat packing plants – Government did not put effective safety protocols in place as requested. Employees forced back to work.

Heather McPherson (NDP): Knowing workers have the right to refuse unsafe work – will they be able to access CERB?

Heather McPherson (NDP): Workers are calling for the plant to be shut down. 85% of workers scared to go to work.

Heather McPherson (NDP): If company has received federal funding for COVID-19 related support?

Richard Bragdon (CPC): Potato Farmers – 300 million dollars of potatoes still left in storage. How will the government help.

Richard Bragdon (CPC): Announced funding today doesn’t cover the loss.

Richard Bragdon (CPC): If farmhouse is on fire, government is offering equivalent of bucket of water. Is there a plan to provide more?

Cathay Wagantall (CPC): why is the government handing out windfall to teenagers living at home but not supporting seniors in need?

Cathay Wagantall (CPC): Clearly high school students do not need this money as college students and seniors do. Why is the PM bent on [inaudible].

Cathay Wagantall (CPC): How does she see that its right to be giving more to students and crumbs to agriculture?

Richard Lehoux: [technical issues – not captured]

Richard Lehoux: Pork and beef producers are suffering. Need improved programs that haven’t yet been implemented. When will the government made this available to producers?

Richard Lehoux: Measures just announced have been well received by the sector. We need to support the agri-support sector. For many workers in this sector, this is crucial. We need something done quickly before our country becomes dependent on our neighbours.

Blaine Calkins (CPC): Firearms question [inaudible]

Blaine Calkins (CPC): This affects duck hunters because of 10 gauge and 12 gauge shotguns.

Blaine Calkins (CPC): There is no announcement about buy back for firearm owners. What was the immediate benefit?

Paul Manly (GP): All citizens wear masks wherever people gather indoors. Taiwan has effectively stopped the outbreak with providing hand sanitizers and masks. Will Canada follow Taiwan’s example?

Paul Manly (GP): Seniors falling through the cracks, will the government make the CERB universal to help people who need help like seniors?

Paul Manly (GP): Many small businesses are missing out. Large companies are using tax havens. Will the government make sure small business needs are met?

Paul Manly (GP): Climate emergency – economic recovery plan?

Niki Ashton (NDP): Federal government has done nothing to help overcrowded hospitals and housing. There may very well be a second wave. Can the government act in time for potential second wave of this outbreak?

Niki Ashton (NDP): Many of us across Northern Canada – outbreak started from a worker in Fort McMurray, these work camps put public health at risk during pandemic. Will you support First Nations calling for shutdowns during this pandemic?

Niki Ashton (NDP): Many work camps where people are very concerned about First Nations. Will you support temporary shutdowns at this time?

Niki Ashton (NDP): Emergency support needed for communities here at home. Inland fishers support coming?

Claude DeBellefeuille: Why is she not using this current context and looking to countries looking to end tax avoidance? End these tax avoidances.

Claude DeBellefeuille (BQ): She is not answering my question. Talking about companies using legal means by putting money in tax havens. How many companies using tax avoidance measure? How much money is the government losing to this?

Claude DeBellefeuille (BQ): There is a federation for agriculture that is trying to contact this government about being non-eligible for loans.

Blake Richards (CPC): Tourism specific A package promised and not followed through on yet. Unemployment rate of 85% or higher. Are seasonal businesses and therefore don’t qualify. Will the government help out seasonal businesses? How will it help the tourism industry.

Blake Richards (CPC): Oil and Gas industry – there has been no help but it was promised. Will liberal government bring forward a plan?

Blake Richards (CPC): Won’t help industry to recover. Expediting private sector projects putting many Canadians back to work an option?

Committee adjourned 2:01pm

Standing Committee on Government Operations and Estimates (OGGO)

Chairperson

Tom Lukiwski (CPC)

Tom Lukiwski

Date of Birth: 1951.10.05

Profession: Businessman, political administrator

First Elected: 2004.06.28

Constituency: Moose Jaw--Lake Centre--Lanigan

Key Issues:

Written Questions:

Correspondence:

Vice-Chairs

Francis Drouin (Lib.)

Francis Drouin

Date of Birth: 1983-10-07

Profession: Communication consultant, political assistant

First Elected: 2015.10.19

Constituency: Glengarry--Prescott--Russell

Key Issues:

Written Questions:

Correspondence:

Julie Vignola (BQ)

Julie Vignola

Date of Birth: N/A

Profession: Teacher, assistant principal

First Elected: 2019-10-21

Constituency: Beauport--Limoilou

Key Issues:

Written Questions:

Correspondence:

Members

Ziad Aboultaif (CPC)

Ziad Aboultaif

Date of Birth: 1966

Profession: Business owner

First Elected: 2015.10.19

Constituency: Edmonton Manning

Key Issues:

Written Questions:

Correspondence:

Kelly Block (CPC)

Kelly Block

Date of Birth: 1961-11-30

Profession: Administrator

First Elected: 2008-10-14

Constituency: Carlton Trail--Eagle Creek

Key Issues:

Written Questions:

Correspondence:

Matthew Green (NDP) (National Revenue Critic)

Matthew Green

Date of Birth: N/A

Profession: City councillor, executive director

First Elected: 2019-10-21

Constituency: Hamilton Centre

Key Issues:

Written Questions:

Correspondence:

Majid Jowhari (Lib.)

Majid Jowhari

Date of Birth: 1960-10-24

Profession: Business consultant

First Elected: 2015.10.19

Constituency: Richmond Hill

Key Issues:

Written Questions:

Correspondence:

Irek Kusmierczyk (Lib.)

Irek Kusmierczyk

Date of Birth: N/A

Profession: City councillor

First Elected: 2019-10-21

Constituency: Windsor--Tecumseh

Key Issues:

Written Questions:

Correspondence:

Steven MacKinnon (Lib.) (Parliamentary Secretary to the Minister of Public Services and Procurement)

Steven MacKinnon

Date of Birth: 1966-09-28

Profession: Communication consultant, executive manager, political adviser

First Elected: 2015.10.19

Constituency: Gatineau

Key Issues:

Written Questions:

Correspondence:

Kelly McCauley (CPC)

Kelly McCauley

Date of Birth: 1964.06.23

Profession: Hotel manager

First Elected: 2015.10.19

Constituency: Edmonton West

Key Issues:

Written Questions:

  1. Q-1892 — December 10, 2019 — Mr. McCauley (Edmonton West) — With regard to ministerial travel between June 21, 2019, and September 11, 2019:
    1. how much money was spent by each minister and their accompanying staff, per trip, on
      1. accommodation,
      2. flights, including number of flights,
      3. car rentals, including number of cars,
      4. fuel claims,
      5. meals,
      6. incidentals;
    2. how many staff members were on each trip, broken down by ministerial staff and departmental staff; and
    3. what was the destination and purpose of each trip?

    The reply was tabled on January 27, 2020.
  2. Q-1902 — December 10, 2019 — Mr. McCauley (Edmonton West) — With regard to ministerial travel between June 21, 2018, and September 11, 2018:
    1. how much money was spent by each minister and their accompanying staff, per trip, on
      1. accommodation,
      2. flights, including number of flights,
      3. car rentals, including number of cars,
      4. fuel claims,
      5. meals,
      6. incidentals;
    2. how many staff members were on each trip, broken down by ministerial staff and departmental staff; and
    3. what was the destination and purpose of each trip?

    The reply was tabled on January 27, 2020.
  3. Q-4252 — April 16, 2020 — Mr. McCauley (Edmonton West) — With regard to government purchases of personal protective equipment (PPE):
    1. how many units of PPE did the government have in Canada by November 30, 2019, broken down by type of equipment, and how much PPE was purchased in this month;
    2. how many units of PPE did the government have in Canada by December 31, 2019, broken down by type of equipment, and how much PPE was purchased in this month;
    3. how many units of PPE did the government have in Canada by January 31, 2020, broken down by type of equipment, and how much PPE was purchased in this month;
    4. how many units of PPE did the government have in Canada by February 29, 2020, broken down by type of equipment, and how much PPE was purchased in this month; and
    5. how many units of PPE did the government have in Canada by March 31, 2020, broken down by type of equipment, and how much PPE was purchased in this month?

    Response being prepared by Human Resources Branch and Finance Administration Branch.

Correspondence:

Patrick Weiler (Lib.)

Patrick Weiler

Date of Birth: N/A

Profession: Lawyer, research officer

First Elected: 2019-10-21

Constituency: West Vancouver--Sunshine Coast--Sea to Sky Country

Key Issues:

Written Questions:

Correspondence:

Associate Members

Marty Morantz (CPC) (National Revenue Critic)

Marty Morantz

Date of Birth: N/A

Profession: Lawyer, city councillor

First Elected: 2019-10-21

Constituency: Charleswood--St. James--Assiniboia--Headingley

Key Issues:

Written Questions:

Correspondence:

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