Finance committee  Thank you, Mr. Chair. I wish the same to you.

Finance committee  We're approaching $100 million in identified, unpaid taxes, plus, when we find those cases, we mine them for others. In terms of ROI and the tactical benefits, it's tens of millions of dollars, cresting $100 million. In terms of deterrence, it's harder to track, but it's definitely there.

Finance committee  It has identified some taxpayers who were flying under the radar. That's part of why we have more than a thousand audits. In fact, our challenge isn't identifying taxpayers we should audit but getting the audits done. That's why budget 2021 gave us new resources for litigation.

Finance committee  I certainly think that the powers of oral interview that allow our auditors to interview officials of businesses to get their position on the record is an important change announced in the budget. There were 15 BEPS action items. Action two on interest deductibility and action four on hybrid mismatches are areas that budget 2021 is coming in on to tighten the rules.

Finance committee  If you were asking me theoretically, I'd say we could impose the burden on the sale. If I were to imagine a regime—not that I've been asked to, and not that there are any government plans or policy debates about this—right now, I would say we would probably want the lawyers who are involved to be responsible for administering the tax.

Finance committee  The first number I gave previously is the one I focus on, which is roughly a $6-billion tax gap for multinational enterprises. That involves a small group in Canada, and we have the resources to audit and litigate with them. The second number, the $800 million to $3 billion, involves a population that is a little bit more difficult to define, high-net-worth individuals.

Finance committee  Thank you, Mr. Chair. Having recently used that tool once in 30 years, I note that it was not a public inquiry and I don't believe the intent was for that tool to be used for a public inquiry. I would be happy to get a more detailed answer to you off-line, but, again, our single use of it was absolutely not a public inquiry.

Finance committee  Mr. Chair, at the CRA, we have made the real estate sector a priority in terms of the underground economy. When we got access to this new tool, we used the information to identify non-residents, and particularly those who, for example, were trying to avoid capital gains tax on the sale of their house.

Finance committee  That's back to the question about the power of inquiry under the Income Tax Act. I think that inquiry is not to be confused with the traditional public inquiry as you might understand it. That power under the act has rarely been used. We've used it once in the last 30 years. Really it's to compel testimony from witnesses who are not otherwise co-operating, so it basically involves contacting the chief justice of the Tax Court of Canada and obtaining a judge who will then question one specific witness.

Finance committee  Thank you. I'll frame it in terms of the question about the additional billion dollars a year not making a dent, because I think it's true that the billion dollars a year is a tactical outcome. It's about the type of files that we're taking forward and the jurisprudence we're creating.

Finance committee  I believe that number includes domestic....

Finance committee  The tax gap reports that the CRA has published transparently would say the number is $800 million to $3 billion for individuals. For multinationals, we're finding about $6 billion, and there's another $6 billion out there. Therefore, it's $800 million to $3 billion from individuals and about $6 billion from corporations that we're not finding.

Finance committee  Mr. Chair, could I respond?

Finance committee  I'm not sure where the 86% came from. There has been a decrease in the referrals because we are focusing on more serious cases. I think similarly that complexity is what's driving the lack of convictions in relation to the Panama papers. There's a high evidentiary standard. It takes the Crown a long time to put its case together.

Finance committee  As was said earlier, the investigations have not resulted in convictions at this point.