The Canadian tax system is riddled with loopholes. Getting rid of them is essential to achieving tax fairness and a system that works for all of us. Take a minute to send this email to Ottawa. Tell the Prime Minister, Finance Minister and your MP that you expect them to stand up for tax fairness and that they can start with a good clean sweeping out in the loophole department.
Hey Canada! It's 2016. Do you know where your money is?
In the span of a single year, $40Billion Canadian flowed to the top 10 tax havens – an all time high. Tax havens now hold at least $270B of Canadian corporate money, mostly untaxed. And this was all happening while the Department of Finance and the Canada Revenue Agency was assuring us that they had it all under control.
Read on to find out the most popular tax havens for wealthy Canadians... and more importantly, how to turn this problem around.
First there was public outrage over the covert activities and entitled attitudes revealed in the Panama Papers. Now there is an added sense of betrayal that governments and regulatory agencies let this happen on their watch.
Is it collusion, corruption or just plain incompetence? That answer will likely play out over time. But we need a public demand for accountability. Canadians need a plan to make sure that our leaders understand what we have known for a while - the tax system is neither fair nor doing its job. Here's a short list of where citizens needs to keep up the pressure.
Some politicians and tax experts argue that prosecuting big-time tax cheats is too complicated and expensive. That makes no sense, argues former senior finance department official, Alan Freeman. "We live in a democracy, and our tax system is part of it — the means by which we make sure that the cost of government is shared fairly by citizens. But the system is only legitimate if it is rules-based and plays no favorites. If we want Canadians to respect the law, accountants and lawyers who cook up schemes to defraud the government should be hauled before the courts and thrown in jail if necessary."