The Finance Minister has earmarked nearly $90 million a year to fight tax evasion - a total of $440 million over five years. This signals that the government has realized how much it is losing to wealthy Canadians who shift their money offshore to avoid paying any tax at home. The budget estimates that it will collect more than $2.6 billion for its investment.
"Ramping up the Canada Revenue Agency's capacity to tackle tax havens is a smart move that can pay off. " says Dennis Howlett, Canadians for Tax Fairness executive director. "Now the CRA needs to mobilize a sophisticated campaign to target both the rich taxdodgers and the financial advisors who facilitate this trend."
Modest estimates indicate there is $199B of Canadian money in offshore tax havens. That amount has grown dramatically as cuts at the CRA were implemented over the past decade.
What is Wrong at the CRA? And How To Fix It outlines the serious problems at the revenue agency. It recommended actions to restore integrity in the process of raising revenues including:
Boosting the CRA’s capacity for investigation and enforcement of tax haven cases.
Prioritizing and prosecuting big tax avoidance schemes rather than focussing on charities, non-profits and smaller cases
Proceeding with a stalled court case against KPMG’s activities on the Isle of Man.
Implementing a Tax Gap report
For more information contact Dennis.Howlett@taxfairness.ca