The issue of tax havens continues to make media headlines in Canada, and fuel opposition party questions and ministerial pronouncements.
On Monday, Canada’s National Revenue Minister Gail Shea released a press release that ‘highlights the Harper Government’s efforts at cracking down on international tax evasion and aggressive international tax avoidance”.
“Our Government has long recognized that this is a serious issue, and we will continue to take strong action to tackle international tax evasion and aggressive international tax avoidance,” said Minister Shea in the statement. “That’s why we have increased the resources available to the CRA for auditing those who may seek to use offshore accounts or other means to avoid paying their fair share of taxes. This is good news for law-abiding Canadian taxpayers.”
The Official Opposition NDP does not think the government is doing enough. The NDP’s national revenue critic Murray Rankin says the department is cutting down on resources to fight tax evasion. A statement the minister denies.
“Independent estimates indicate that Canada could be losing between $5.3 billion and $7.8 billion annually in tax revenue as a consequence of illegal tax havens,” said Murray Rankin.
The use of tax havens has received a fair bit of coverage, particularly after the release earlier this month of data showing thousands of individuals, including 450 Canadians, using tax havens. That media coverage will likely motivate some Canadians to admit to using tax havens.
A Canadian Press article by Deen Beeby says: “Wealthy Canadians with money stashed overseas have come forward in droves to confess their misdeeds after secret lists began circulating with the names of people apparently evading taxes in foreign banking havens.”
These disclosures date back to 2007 and the documents detailing the disclosures were obtained by The Canadian Press under Canada’s Access to Information Act, according to Beeby.
The issue was brought up publicly last year by a citizens’ group Canadians for Tax Fairness and their “Tackle Tax Havens” campaign.
More information:
Minister Shea press release – here
CBC News – Revenue Canada cuts undermine tax haven crackdown, NDP says – here
RCI – Input from revenue minister blocked by govt MPs in finance committee – here
Canadian Press – More wealthy Canadians come clean with assets after tax-haven lists emerge – here
Tackle Tax Havens campaign page – tackletaxhavens.ca
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