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April 22, 2015

Budget 2015: Overseas Tax Evasion Acknowledged

Charlottetown Senator Percy Downe is pleased that after so many years, the federal government announced in the Budget yesterday that it is finally committing some of the resources required to fight overseas tax evasion.

“It’s only a start, but it appears that the Government is coming to appreciate the seriousness of the problem,” said Downe. “The illegal practice of overseas tax evasion denies the Government of Canada the revenue it needs to provide services that Canadians require, and the measures announced to recover that revenue suggest that things are changing for the better.”

“Hopefully with an election later this year, all political parties will make this a priority issue and the 2016 Budget will see even more money allocated to fighting this serious problem,” said Downe.

However, Downe was disappointed that there was no recognition of the need to measure the “tax gap” (the difference between what is owed in taxes and what is actually collected). “Knowledge is the foundation of sound public policy, and serious efforts to combat overseas tax evasion can only come from a thorough understanding of the problem. Measuring the tax gap would help provide that understanding.”

Given that unlike many other countries around the world, the Government of Canada has still not recognized the importance of measuring the tax gap, Downe will continue in his efforts to impress upon them the need for such an exercise. On April 2nd, 2015, Downe introduced Bill S-226, the Fairness for All Canadian Taxpayers Act; under the provisions of this bill, the government would be required to provide a public estimate of the tax gap on a yearly basis.

 

For further information:
Senator Percy Downe: 613-943-8107
Or toll free at 1-800-267-7362   
www.sen.parl.gc.ca/pdowne

 
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