CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Canadian Accountants Push For Clarity In Tax Reform Debate

Canadian Accountants Push For Clarity In Tax Reform Debate

by Mike Godfrey, Tax-News.com, Washington

26 November 2013


The Chartered Professional Accountants of Canada (CPA) has released a white paper that it claims clarifies the current confusion over tax evasion, tax avoidance, and corporate income tax.

According to CPA Chief Executive Officer Kevin Dancey, "Attitudes and expectations are changing, both in Canada and internationally, so it is important they be addressed."

The white paper calls for the federal Government to consult on proposed "enhanced relationships," based on greater transparency, cooperation and trust among tax authorities, businesses, and tax advisors. It also acknowledges that tax planning is not always "black and white," partly because domestic and international tax systems are highly complex, and because there remains "considerable confusion in the public domain over what tax evasion actually means and what is acceptable tax planning."

The CPA further concedes that so-called "grey areas" can emerge. A company may engage in tax planning that is technically legal, but it runs the risk of a revenue authority concluding that the action runs contrary to the object and the spirit of the law. Tax courts and policy makers are often involved in resolving the dispute, and the CPA argues that both the taxpayer and the revenue authority could benefit from avoiding such lengthy and costly cases.

Gabe Hayos, CPA's Vice President, Taxation, explained: "Illegal tax evasion is harmful to economies and must be prevented. However, legal tax planning by businesses should be accepted as a means of reducing costs. Corporations should be expected to make legal use of low tax rates or other tax incentives that countries offer to compete for foreign investment."

Finally, the white paper outlines five key steps that Canada could take to improve its tax system. These are: keeping corporate income tax low; tightening the focus of specific anti-avoidance rules; rethinking the corporate income/consumption tax mix; using tax policy to help Canadian businesses compete, and pursuing more international tax information exchange agreements (TIEAs).

TAGS: court | compliance | tax | investment | business | tax compliance | tax avoidance | tax incentives | revenue guidance | law | ministry of finance | tax authority | agreements | tax planning | tax rates | Canada | revenue statistics | trade association | trade | Tax | Tax Evasion

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »