06/10/21

CANADA: Tax professionals want more tools to collect offshore tax.

As published on wealthprofessional.ca, Wednesday 6 October, 2021.

There’s an old saying that the only certainties in life are “death and taxes” but for some, the second of these is less certain despite their wealth.

While financial advisors and other wealth professionals will always seek the best outcomes for clients, but the Pandora Papers investigation has highlighted how some individuals and corporation manage to avoid paying their fair share of tax by using offshore accounts and shell corporations.

Canada’s auditors, forensic accountants, and other tax professionals at the Canada Revenue Agency (CRA) have had enough of wealthy individuals and corporations avoiding taxes according to a statement issued Tuesday by the Professional Institute of the Public Service of Canada (PIPSC).

"The release of the Pandora Papers provides another disturbing window into the complex global commercial landscape that allows many wealthy individuals and corporations to look for a haven where the tax rules don't apply," said Debi Daviau, the union’s president. "We need more investment in the CRA, along with enhanced transparency, international cooperation and political will to ensure everyone pays their fair share."

The union says that its members want the time and resources needed to collect offshore taxes and is urging the Canadian government to expediate its commitment of $1 billion per year for the CRA to tackle tax avoidance.

"We urge the government to fast-track its tax fairness agenda. Canadians are fed up with the shell game, and tax professionals at the CRA are firmly among them,” said Daviau. "Tax laws need to be revised and tax professionals at the CRA need the resources to enforce them equitably.”