September 22 2025

If governments could get large corporations and the wealthy to pay their fair share, the kind of cuts to public services some governments are contemplating would be unnecessary. There is a lot we can do to make the tax system fairer, despite what the beneficiaries in the current tax system would have us believe.

An opinion piece in the National Observer from Jason Ward, the principal analyst at the Centre for International Corporate Tax Accountability & Research (CICTAR), looks at one tool to make it harder for large corporations to dodge taxes: public country by country reporting (pCbCR). Both Australia and the European Union have already introduced pCbCR and, while neither system is perfect, both are a step forward.

Ending secrecy is essential for tax fairness

With pCbCR, multinational corporations with revenues above a certain amount must publicly report their profits, losses, number of employees and taxes paid in jurisdictions that are listed as tax havens. That information helps identify corporations engaged in tax dodging.

It is very important that the information be public. Even after the Panama Papers and other leaks showing exposing the size of the problem there have been few prosecutions of wealthy individuals or large corporations for using tax havens. Canadians are understandably concerned that the Canada Revenue Agency (CRA) does not have the ability to deal with tax dodging by the wealthy and large corporations.

Instead, low- and middle-income people are being prosecuted for relatively minor offences. When tax avoidance information is made public, it is easier for Canadians to pressure the federal government to ensure the CRA has the resources to take action on the most serious cases of tax dodging – what the wealthy and large corporations are involved in.

pCbCR only one measure

pCbCR is only one of the measures the federal government needs to be taking to close the revenue gap. Other measures include closing loopholes in the recently approved beneficial ownership registry and tax legislation. More resources are required so that the CRA can pursue and prosecute those with deep pockets.

Tax fairness is essential for a strong Canada

As NUPGE’s submission to the consultations for the upcoming federal budget made clear, the federal government doesn’t just need to maintain spending at its current levels. If the federal government genuinely wants to build a strong Canada where no one is left behind, spending needs to be increased. A government that is sincere in its commitment to tax fairness will be able to do that.