OTTAWA, ONTARIO--(Marketwired - June 30, 2016) - Canada Revenue Agency
Middle-class taxpayers who pay their share of taxes expect a tax system that is fair and responsive to their needs. The Government of Canada is determined to use all tools necessary to make sure Canadians have confidence in their tax system.
Today, the Minister for National Revenue, Diane Lebouthillier, announced that the Canada Revenue Agency (CRA) has taken the first step to follow through on its commitment to estimate Canada's tax gap with the presentation of a study on tax gap estimation. This process will help the government examine the difference between taxes that would be paid if all obligations were fully respected in all cases and the taxes that are actually paid and collected. Understanding this will help the Government of Canada crack down on tax evasion and tax avoidance.
This commitment is part of a series of measures announced by the Minister on April 11, 2016, to more effectively combat tax evasion and tax avoidance.
"I am pleased to present the Canada Revenue Agency's first study on estimating the tax gap. It is important that this tool is used to make sure that Canadians have confidence in the fairness of the tax system. It is equally important that we continue to seek innovative ways for Canadians to understand and comply with the Canadian tax system."
The Honourable Diane Lebouthillier, P.C., M.P., Minister of National Revenue
- Canada joins 24 other OECD countries that estimate at least one aspect of their respective tax gaps.
- The CRA is also publishing today a document prepared by the Department of Finance Canada, which presents an estimate of the goods and services tax/harmonized sales tax (GST/HST) gap from 2000 to 2014.
- The CRA will continue to examine ways to better understand the tax gap and see how it can be applied to the Canadian context. Over the next two or three years, the CRA will publish a series of documents on various aspects of the tax gap.
- The CRA will also be consulting with stakeholder organizations, including the Canadian Tax Foundation, over the next year to ensure experts, academics, and other interested parties are contributing to Canada's investigation of tax gap estimation.
Tax Gap in Canada: A Conceptual Study
Estimating and Analyzing the Tax Gap: Related to the Goods and Services Tax/ Harmonized Sales Tax
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