Report From Parliament's Hill - May 1st, 2008

By Prince George - Peace River M.P. Jay Hill

Elections Financing:  The Facts

I believe it rather timely today, the deadline for Canadians to file their income taxes, to demonstrate how the elections financing dispute between Elections Canada and the Conservative Party is just like a disagreement you may have with the Canada Revenue Agency (CRA).

When you file your taxes, you claim credits or expenses based upon what you and/or your accountant believe to be an accurate interpretation of income tax rules set out by CRA in their various guides.  As many constituents and local businesses can attest, it happens frequently that CRA will disallow a claim you have made.

Then begins the process of re-assessments, audits, and the exchange of documents, receipts and correspondence as you or your accountant and CRA argue over the interpretation.  Based upon these findings the CRA either reverses its decision and allows the disputed claim, or it maintains its original decision and you owe them money.  When individuals or businesses refuse to accept the CRA’s decision, they appeal or even take the Agency to court.

Just as you file your taxes in accordance with your interpretation of the income tax guide, the Conservative Party and official agents for 67 Conservative candidates in the January 2006 general election filed election returns based upon an Elections Canada candidates manual from December 2005.

In my case, my election return was approved by Elections Canada and a rebate cheque was even issued.  It was only in an altered edition of the candidates manual in 2007 that Elections Canada officials changed their own interpretation of the rules and used that revision to declare my campaign’s claim for the ad purchase invalid.

It’s perfectly legal for a party to transfer funds to ridings.  It’s perfectly legal for local candidates to pay for ads with national content and it’s perfectly legal for candidates to purchase ads from the national party.

Every single political party in the House of Commons has done precisely the same thing to help finance local campaigns.  We didn’t invent the practise … the Bloc and the Liberals did that.  The NDP took part in a similar arrangement in the 2006 election.  These practises have been used for years and allowed by Elections Canada.

The Conservative Party is so confident that our position is correct and that we are being unfairly singled out that we took Elections Canada to court just like a taxpayer may take CRA to court.  After all, the Liberal leadership candidates took Elections Canada to court recently and won.

Given that the Conservative Party believes we did nothing wrong, there was no reason to withhold any documentation.  That’s why the real scandal is Elections Canada officials showing up unannounced at Conservative Party Headquarters to seize documents, with members of the Liberal Party and the media also mysteriously present. 

By also showing up with the RCMP, which is NOT investigating this matter, they confused Canadians into believing there was illegal activity involved.  Yet, in violation of their own rules, Elections Canada didn’t bother to notify any Conservative officials or their legal team that they wanted additional documents.

Canadians deserve an explanation for the elections financing controversy.  Yet it is Elections Canada that must justify its actions.

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