October 18, 2000 - In 1991, a Revenue Canada tax ruling allowed one of the country's wealthiest families to avoid a 0 million tax bill by transferring a billion family trust out of the country. The family trust loophole had been raised several times by the NDP, and in particular by then NDP Tax Critic Bill Blaikie in the House and before the Finance Committee. And in 1996, on behalf of all Canadians, George Harris, of Winnipeg, charged Revenue Canada with failing to enforce federal law by not collecting the taxes it was owed. The campaign in support of his effort has come to be known as Project Loophole.

Despite the best efforts of the Liberal government to stall the Project Loophole case, the federal court has placed the case under Special Management and ordered the Federal government to file its defense by 5:00 pm, October 20th.

Today in the House of Commons, NDP MP Bill Blaikie challenged the Minister of National Revenue to stop dragging its feet in the case and account for its failure to collect 0 million taxes owed by one of Canada’s wealthiest families. A copy of his question is included below.

For more information about Project Loophole, please visit its website at: http://www.icenter.net/~bponcele/

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From Question Period - October 18, 2000:

Mr. Bill Blaikie (Winnipeg—Transcona, NDP): The Minister of National Revenue will perhaps be aware that in the case called Project Loophole pursued by a person from Winnipeg by the name of George Harris the federal court has now ruled in his favour, once more, once more, in spite of federal government obstruction on this matter.

Could the minister give us the assurance that the federal government will stop obstructing this and finally account for how it allowed a particular family to get away without paying 0 million in taxes?

Hon. Martin Cauchon (Minister of National Revenue and Secretary of State (Economic Development Agency of Canada for the Regions of Quebec), Lib.): Mr. Speaker, first, I can tell you actually that there is no obstruction at all from the agency.

Second, it is a very important matter. It implies some question of confidentiality, so it concerns each and every taxpayer. I would like to say as well that the case is pending in court. We are in the process to keep proceeding within the timeframe that we have as per the legislation.