Letter to Ministers Flaherty and Baird urging them to defend Canadian-US citizens being pursued by the IRS

Letter to Ministers Flaherty and Baird urging them to defend Canadian-US citizens being pursued by the IRS

Honourable Jim Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa, ON
K1A 0A6

Honourable John Baird, P.C., M.P.
Minister of Foreign Affairs
House of Commons
Ottawa, ON
K1A 0A6

Dear Ministers:

RE: United States Internal Revenue Service; Enforcement Policy against Dual Canadian-US Citizens

As you are aware, the United States Internal Revenue Services is pursuing a series of measures aimed at addressing tax evasion and the use of offshore accounts to shield assets from US taxation. As you are further aware, these measures have been directed at Canadian citizens who are residents of Canada holding US citizenship in a most punitive, unfair, and unacceptable manner. These measures include the imposition of onerous filing and reporting requirements, unreasonable penalties (even in the absence of any taxes owed) and privacy-violating disclosure obligations.

Our riding offices have received calls and letters on almost a daily basis from constituents who are dual citizens. They are justifiably concerned with, and upset at, the prospect of disclosing their confidential banking information to an agency of a foreign government, particularly when they have no earnings there. In many cases these accounts are held jointly with Canadian-born spouses who are forced to disclose their information to the IRS. All are fearful of heavy penalties on their families’ savings in Canada for non-compliance with US tax laws they did not know were relevant.

This problem is particularly disturbing when one considers the vast majority of Canadians affected have lived in Canada, earned their incomes in Canada, and paid taxes to Canada for most, if not all, of their lives. Almost all of these citizens had no idea that they had to file US tax returns, have no US income, and do not owe any back taxes to the US. Yet, they are being asked to pay heavy penalties that amount to little more than a seizure of their assets.

Canadians are also being asked to file financial disclosure documents with the IRS for each and every financial account that they have with over $10,000 in assets. This is an invasive and burdensome requirement. Moreover, we understand that the US intends to require Canadian financial institutions (via the proposed Foreign Account Tax Compliance Act) to report personal financial information respecting Canadian accounts to the IRS in 2014.

Over-arching all is the obvious point that Canada is most certainly not a tax haven, and almost every Canadian citizen affected has not in any manner whatsoever been engaged in tax evasion of any type.

We want to thank Minister Flaherty for taking a public stand in support of dual Canadian –American citizens against the Internal Revenue Service’s cross-border tax enforcement initiatives. However, it is our collective opinion that further action is required.

We urge the Canadian government immediately to enter into discussions with its US counterparts with the following objectives:

1. Negotiate an exemption for Canadian citizens to file US tax returns in circumstances where those citizens have no US income or assets, or who have no real connection with the United States.;
2. Negotiate a true amnesty that allows Canadian citizens to file US tax returns, with a reasonable retroactive component, free of any forfeiture or penalties save the taxes owed, if any, and reasonable interest;
3. Advise the US that Canada will not proceed with the stated desire of the United States to require Canadian financial institutions to disclose financial information of its Canadian clients to US authorities;
4. Push the US to refine their reporting criteria to differentiate between those US citizens they claim to target who deliberately engage in activity to evade US taxation and Canadians who annually report their income and financial accounts to Canada Revenue;
5. Advise US authorities that it is unacceptable for tens (perhaps hundreds) of thousands of law-abiding Canadian citizens to be threatened with onerous penalties and legal action by their newly-introduced financial disclosure enforcement policies.

The potential of forfeiture of Canadian assets to the US threatens many Canadians’ income security and amounts to an unacceptable and unjustified transfer of wealth from Canada to the US. We hope that the government will work with MPs of all parties in the House of Commons to preserve Canadians’ interests and protect Canadians from the US Internal Revenue Service. We urge you to take strong steps in this regard.

Sincerely,

NDP British Columbia Caucus

Don Davies, MP
Vancouver Kingsway

Alex Atamanenko, MP
BC Southern Interior

Jean Crowder, MP
Nanaimo-Cowichan

Nathan Cullen, MP
Skeena-Bulkley Valley

Libby Davies, MP
Vancouver East

Fin Donnelly, MP
New Westminster-Coquitlam and Port Moody

Randall Garrison, MP
Esquimalt-Juan de Fuca

Peter Julian, MP
Burnaby-New Westminster

Jasbir Sandhu, MP
Surrey North

Denise Savoie, MP
Victoria

Jinny Sims, MP
Newton-North Delta

Kennedy Stewart, MP
Burnaby Douglas


Libby demands action on drug shortages

Libby demands action on drug shortages

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HANSARD

House of Commons

March 12, 2012

Ms. Libby Davies (Vancouver East, NDP)

Mr. Speaker, first of all, I would like to say that I will be sharing my time this evening with the hon. member for Beauharnois—Salaberry.

I would like to thank you, Mr. Speaker, for agreeing to my request to have an emergency debate on this very critical issue of drug shortages in Canada. I made the request on Friday and I am very glad that the House has an opportunity to discuss this very critical issue. Being in our ridings and our home communities over the weekend, I have no doubt that many members of Parliament probably heard from constituents how concerned they are about this escalating drug shortage in Canada.   

We know that this shortage has been ongoing for a period of time, but in the last month or so it has become something that is now approaching a critical nature because of the closure of the Sandoz plant. We are also aware that this shortage is projected to last 12 to 18 months. Across the country many regions have had to change their prescription strategies to use replacements, often without experience about how they work, and to limit elective surgeries. As we gather information across the country and from ongoing news reports, we know now that pretty well every province and region is affected.

We need to put on the record that this shortage is having the most serious impact on patients in intensive care units and those who are dying and in need of pain management. We know that hospitals in Quebec are cancelling elective surgery and that hospitals in Ottawa are saying that they will probably have to do so in the next few weeks if their drug supplies are further depleted. We also know that in Alberta, Manitoba and B.C., they are also suggesting that they will have to do the same if the situation continues.

Although I am not a health expert, certainly from all of the information that we have before us, we know that injectable opiates are the main method of pain control for surgery, post-operative care and any hospital admission. With the hospitals running low on these drugs, they are now being forced to cancel elective surgeries and to save the medications for severely ill patients and those who need serious pain management.

We know, for example, that for patients in Alberta who are undergoing chemotherapy they are now being asked to buy their own anti-nausea drugs because the hospitals can no longer provide extra supplies. These drugs are very expensive. They can cost up to $13 a pill and it is good to know that the Province of Alberta has said it would reimburse the cost, but still it puts patients at a great hardship and disadvantage.

Right across the country there are stakeholders, health care interests, who are speaking out and I would like to read into the record some of what is being said about this crisis. For example, Dr. Rick Chisholm, president of the Canadian Anesthesiologists’ Society, has been calling on the federal government to develop a national strategy to “anticipate, identify and manage shortages” of essential drugs.

We know that the Ontario Health Minister, Deb Matthews, has said that Ontario did not get any advance notice about the shortages. In fact, she pointed out that the provinces have no way of knowing when a supply is short because the federal government does not require drug companies to report gaps in supply. 

We know that the Alberta Health Minister, Mr. Horne, has said that “We’re not going to stand by and simply wait to hear from Sandoz”, the company that shut down, “or the federal government”. 

We hear from a specialist nurse manager in Vancouver who specializes in pain management, who says that she cannot understand how the federal government has allowed the supply of all injectable opiates to be threatened.

The Cancer Society has pointed out that Health Canada is the regulator of drugs. It approves and certifies drugs for sale and monitors safety and regulates the way drug companies operate. It also points out that other countries have taken much more action to protect patients, including mandatory reporting and inquiries to address the root causes. It calls for a plan that must focus on the needs of patients.

We also know that the Canadian Medical Association did a survey more than a year ago where 74% of doctors surveyed said that they had encountered shortages of generic drugs, most commonly antibiotics.

 We also know, and this is very concerning, that the Canadian Pain Society has reported that it is seeing an increase in people who are feeling suicidal because they are so worried about the lack of medication that they depend on every day. We are facing an incredibly serious situation.

There have been many reports over the years from the Canadian Pharmacists Association. The pharmacists have been sounding the alarm on this issue for a very long time and there have been media reports. Yet the response we have seem from the federal government has been, at best, completely inadequate and in fact really quite pathetic.

What has the federal government done? Well, it set up a voluntary reporting system. As we have heard from some of the provincial health ministers, setting up a voluntary system does nothing to require these companies to report information when they know they are going to have a shortage.

I think it is very interesting that in the United States, by contrast, in October 2011, President Obama issued an executive order directing the FDA to require drug manufacturers to provide adequate notice. In fact, there is currently legislation in the American Congress to require, not just ask, all companies to give six months’ advance notice of potential shortages, punishable by civil fines for non-compliance that could reach $1.8 million under the proposed bill.

We can see that this problem is very widespread. It does not just involve Canada, but other countries have taken much more serious note of what is happening and are being proactive in intervening and ensuring that patients are not suffering.

It is very sad and disturbing, unfortunately, to see that the federal government and Health Canada have not taken such action in Canada. Therefore, I think it is very important to have this debate to hear the perspectives of different parties on the nature of the crisis and what we believe should be done.

I would suggest that the first issue we need to focus on is the need for Health Canada and the federal government to become much more involved in this issue. A voluntary committee is just not going to cut it. We know that provincial health ministers are now having daily calls to try to sort out this mess and the very real threat they face in deciding what to do in their individual jurisdictions and with the hospitals that depend on these now unavailable drugs.

I think it is imperative that Health Canada and the federal government acknowledge that they have not been proactive on this issue. Calling for voluntary measures to set up a website has not done anything to mitigate the crisis now before us. They need to take much stronger action.


B.C. NDP cabinet includes bright minds, but there are still political potholes to avoid

B.C. NDP cabinet includes bright minds, but there are still political potholes to avoid

When the NDP governed in the late 1990s, the party made a big deal of having three ministers of South Asian ancestry: Ujjal Dosanjh, Moe Sihota, and Harry Lali. This was taken as a sign that it embraced diversity. But when it came to the senior ranks of the bureaucracy, it was pretty monochromatic. One senior civil servant in that era, Suresh Kurl, even documented how few people of colour were working for the government. The front of the house looked diverse, but the corridors of government power were still very, very white.




Libby introduces transparency motion at Health Committee

Libby introduces transparency motion at Health Committee

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At the most recent meeting of the Standing Committee on Health, Libby introduced a motion to limit the use of in-camera proceedings by the Conservative government in Health Committee meetings.  Here is the text of her motion:

That the Committee may meet in camera only for the purpose of discussing:

(a) wages, salaries and other employee benefits;

(b) contracts and contract negotiations;

(c) labour relations and personnel matters;

(d) a draft report;

(e) briefings concerning national security; and

That all votes taken in camera be recorded in the Minutes of Proceedings, including how each member voted when recorded votes are requested.

A vote on the motion will take place at a future meeting.


Some thoughts about the tragic death of Jamie Hubley

Some thoughts about the tragic death of Jamie Hubley

I didn’t know young Jamie Hubley from Ottawa, but his recent death by suicide is so very tragic and troubling that I’ve been thinking about it ever since I read the news.

It must be very hard for his family and I offer, like many, my deepest condolences and sympathy for their loss.

In this day and age we tell ourselves that homophobia, bullying, and violence against the LGBT community are mostly things of the past. But the horrible face of homophobia is still here and queer youth are too often, confronted with this reality. I feel terrible that this lovely young person, a figure skater, who loved music, could not escape the bullying.

It’s hard not to feel angry. Is it ignorance, the need to control and abuse; hatred; insecurity about anything different; or maybe all those things? Bullying is one of the most sickening and destructive behaviours and anything we can do to eliminate it is so important.

I know many amazing organizations, like Jer’s Vision- http://jersvision.org/ – are working hard to make people aware of bullying and homophobia and to celebrate diversity and support for queer youth.

There’s so much good stuff going on, so it makes it all the harder to know that Jamie and other young people are feeling alone and without choices.

Surely, our schools must be places for learning and acceptance, not bullying and pain.

We all must speak out against bullying and homophobia. Young Canadians, no matter what their sexual orientation, background, religion, or colour, have a right to safety, dignity, and the realization of their human and unique potential.

Please, let’s re-double our efforts, whether it is legal, political, educational, activism, by working together to make our schools, communities, and homes safe.

Libby



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