Trudeau’s Government Rocked Over Allegations of Treason

The Trudeau government, under pressure to divulge the names of parliamentarians accused of acting as agents for other countries, gave in to opposition demands to refer the case to a special commission on Monday.

The special inquiry follows a bombshell report by the national security committee alleging that nameless politicians were secretly coordinating with foreign governments. Read the Report

Prime Minister Justin Trudeau stated in parliament that naming parliamentarians would be a violation of the law, and that the RCMP would be responsible for the investigation.

The committee, citing classified material from Canada’s secret services, claimed it was unable to identify the parliamentarians or their political party affiliation. Opposition members began debating a motion on Monday to refer the situation to an independent investigation, which is already looking into foreign meddling.

Public Safety Minister Dominic LeBlanc agreed with the request, pointing out that the investigation already had access to the materials listed by the legislative committee.

“We believe that’s a responsible way to proceed, rather than simply standing up and illegally announcing a list of names,” he told the House of Commons, the elected lower chamber. He did not agree to name names.

Trudeau’s failed approach to national security

The official opposition Conservatives, who polls show are poised for an easy victory in a national election due in late October 2025, accuse Trudeau of a lax approach to security.

“Certain members of this House engaged in the best interests of hostile foreign regimes that interfered with Canadian democracy. “This is a disgusting betrayal of the Canadians who elected us,” said party legislator Jasraj Singh Hallan in the House on Monday.

The committee of lawmakers reported last week that India and China were the major foreign dangers to Canada’s democratic systems.

The independent committee said in an initial report last month that it had discovered evidence of foreign influence in Canada’s last two federal elections, but that the outcomes were unaffected and that the electoral system remained resilient.

The committee with top-security clearance stated that its findings were based on over 4,000 papers and 1,000 pieces of evidence. According to the research, China remains Canada’s most serious foreign interference concern, with India coming in second.

According to Politico, one of the more devastating passages in Monday’s report criticizes Trudeau for failing to address long-standing issues around the use of national security information in criminal cases.

Freeland to the rescue

Deputy Prime Minister Chrystia Freeland told reporters on Tuesday that she takes the problem seriously. When asked if Canadians have a right to know who the politicians involved are, she evaded.

“We should recognize this is a new time,” she said, adding that authoritarians seek to destroy democracies by instilling popular contempt in the government.

Freeland refused to provide names and did not feel that “sunlight” on the issue would assist democracy. She disregarded questions about the matter during her Liberal Party’s weekly caucus meeting on Wednesday.

Last October, Conservative MP Michael Chong testified before the congressional-executive commission on China about being harassed by Beijing for his support of Uyghur rights.

Chong learned from media reports that a Chinese diplomat had been deployed to gather information about him and his family. Canada’s intelligence agency has alerted other Canadian politicians, including NDP MP Jenny Kwan, that China is also spying on them.

Meanwhile, David McGuinty, chair of the NSICOP, which issued the buzzy redacted report, claimed the choice to reveal parliamentarians’ names is beyond his authority.

McGuinty and the other nine NSICOP members with top-secret security clearance are subject to Canada’s Security of material Act and face prosecution if they unintentionally expose classified material, he told Reuters.

CSIS, Canada’s main intelligence agency, stated last month that continuous Chinese electoral involvement has the potential to harm Canadian democracy. Beijing disputes allegations of interference.

Trudeau’s capital-gains tax criticized

The Trudeau government will call for a vote this week on a planned increase in the capital-gains tax inclusion rate, a proposal that would generate billions of dollars in new government income but has sparked outrage among Canadian businesses.

However, groups such as venture capitalists, startup founders, and junior mining businesses may have to wait longer to find out whether their specific worries about the policy have been addressed, according to government officials who talked with Bloomberg. The legislation to execute the tax reform is not yet ready.

The key components of the capital gains adjustments will be unveiled in a resolution submitted in Parliament on Monday, according to Finance Minister Chrystia Freeland, who spoke in Toronto on Sunday. She stated that the motion will adhere to the “broad outlines” announced in April, including an implementation date of June 25.

“Tomorrow we will introduce changes that will result in a small number of Canadians paying a little more in tax,” Freeland stated. The government intends to raise the capital gains tax on corporations and individuals in years when their gains exceed C$250,000 ($182,000).

Currently, half of the gains are liable to company or personal income tax; that figure will increase to two-thirds. Owners of certain small enterprises, farms, and fishing operations can benefit from exemptions and discounts.

However, a few other initiatives relating to the capital gains adjustment will require legislative action. Officials who asked anonymity to speak about the government’s preparations warned that the provisions of that measure may take weeks to finalize.

Business organizations have widely criticized Trudeau’s capital gains tax hike, arguing that it will harm Canada’s capacity to attract investment and exacerbate productivity issues.

Last month, Trudeau stated that the tax adjustment aims to encourage the rich to contribute more to society. His primary opponent, Conservative Leader Pierre Poilievre, has yet to say how he will vote on the legislation.

According to Freeland’s budget, the policy will generate over C$20 billion in new tax revenue over the next five years, albeit this number is based on the premise that some investors will rush to sell assets before June 24. That is the final day to realize a gain at the current reduced tax rate.

Sources: Politico, Reuters