This bill, called the Fairness for All Canadian Taxpayers Act, aims to improve transparency and efforts to reduce tax evasion in Canada. It requires the Canada Revenue Agency (CRA) to list all convictions for tax evasion in its annual reports. It also mandates that the CRA include data about the "tax gap"—the difference between taxes owed and taxes collected—in its reports every three years. The bill defines the tax gap as the total amount of taxes that should have been paid but were not, due to undeclared income, incorrect filings, or non-compliance with foreign reporting rules. The Minister of Revenue must also share tax gap data with the Parliamentary Budget Officer for analysis.
The bill aims to make information about tax enforcement more open. The CRA will report more details about tax evasion cases, especially international cases. Every three years, the government will release data showing how much money is lost to tax evasion. This transparency might help the public see how well the government is fighting tax cheats. The focus on international tax evasion could also mean more attention on wealth or income hidden in other countries. Overall, the bill seeks to ensure everyone pays their fair share of taxes and that authorities track and reduce unpaid taxes more effectively.
Data unavailable. The bill requires the CRA to produce detailed reports and compile data on tax evasion and the tax gap. Implementing these reporting and data collection requirements may involve costs for the CRA, but specific figures are not provided in the bill or its supporting documents.
Supporters argue that the bill will increase transparency about tax enforcement. Listing convictions for tax evasion will show efforts to catch offenders. Including the tax gap in reports will help track how much revenue is lost and how effective enforcement is. Sharing data with the Parliamentary Budget Officer can lead to better government policies to reduce unpaid taxes. Supporters believe these measures promote fairness by ensuring all taxpayers follow the rules and that the government can better fight tax evasion, including international cases.
Critics may say that the bill could lead to increased government oversight without necessarily improving enforcement. Listing convictions might reveal sensitive information or lead to privacy concerns. Some argue that estimating the tax gap is difficult and could be inaccurate, which might affect trust in government reports. Additionally, opponents question whether the costs of enhanced reporting and data sharing will be justified by the benefits, especially if it does not lead to significant reductions in tax evasion. They also point out that the effectiveness of these measures depends on how well the CRA implements them.