Ottawa (17 May 2019) In its weekly newsletter, Canadians for Tax Fairness has reported that, according to the Auditor General of Canada, Canadian businesses are at an "unfair disadvantage" because the tax system has not kept pace with the digital economy. While Canadian companies are required to collect and remit sales tax on top of income tax, foreign e-commerce corporations such as Netflix and Facebook are not.
Canadians for Tax Fairness
Alexandria Ocasio-Cortez's proposed top tax rates are also consistent with those recently proposed by one of Canada’s most prominent economists.
Canadians for Tax Fairness has continually advocated for the CRA to crack down on large tax avoidance operations, larger corporations and the wealthy and to stop being so heavy handed with less wealthy individuals, charities, and small businesses.
If we can make it harder for terrorists and organized crime to fund their activities, we reduce the risk to the public. Politicians who aren't willing to support a public registry of the beneficial owners of companies are lying if they turn around and pretend to be tough on crime or terrorism.
On the list of countries operating CBI/RBI schemes, that the OECD feels have the potential to be used for tax dodging, are 2 tax havens that are popular with wealthy Canadians and large Canadian companies. These are Barbados and Panama.
Though the ruling only covers the company’s 2003, 2005, and 2006 tax years including about $11 million in taxes, it will have implications for the approximately $2 billion in taxes, plus interest and penalties, the CRA has assessed as owing in subsequent years.
"Tax haven use in Canada has been rampant precisely because our lawmakers were looking the other way. They need to show the public that they have turned that around." — Dennis Howlett, Executive Director of Canadians for Tax Fairness
“For Canada to be a real leader in gender budgeting, the revenue side of the budget cannot be ignored.” — Diana Gibson, Communications Director for Canadians for Tax Fairness
This tax exemption for foreign companies means that they don't pay the same taxes as Canadian businesses on what they earn in Canada — Canadians for Tax Fairness
“There are some simple changes that can close the door to corporations using tax havens to avoid paying their fair share.” — Dennis Howlett, Executive Director, Canadians for Tax Fairness