WHY TAX FAIRNESS?

We need greater tax fairness to:

Reduce inequalities: The tax system should help reduce inequality, not contribute to it. Unfortunately, decades of tax cuts and tax loopholes have helped corporations and the wealthy avoid taxes. The top 1% now pays a lower overall effective rate of tax than all other income groups. By requiring the rich to pay their fair share, the government can promote greater equality with programs and benefits for lower-income households. 

Despite some positive developments since the last report, Canada continues to play a role in the offshore system. The country still offers a very low effective tax rate for businesses and acts as a regulatory haven for the world’s extractive industries. Canada has a long history in the development of tax havens, but today it is becoming better known as a destination for money laundering (or ‘snow washing’), due to Canada’s weak rules over corporate transparency and beneficial ownership.

INTRODUCTION

At a time when Canadian families are dealing with the hangover of bills and debts to pay after the holidays, corporate Canada has reason to celebrate.

Tuesday January 7th, 2020 at 8:56am is the time when Canadian corporations could have paid all their federal and provincial corporate income taxes out of their revenues for the year: “Corporate Income Tax Freedom Day.”