November 7, 2017
CRA - Same Old Spin
The Canada Revenue Agency (CRA) are up to their old tricks of trying to mislead Canadians, this time in response to the latest leak of tax haven information, the Paradise Papers. In a statement released on November 3rd 2017, the Agency refers to their “billion dollar investment” to combat tax evasion ($444 million from the 2016 budget and the $523.9 million in 2017), but in Fiscal Year 2016-2017 less than $40 million of that “billion dollar investment” was actually spent (Written Question and response tabled in the Senate attached).
Similarly, the Agency mentions a “full-time dedicated unit focused on offshore non-compliance.” What they do not say in their statement, but again, admit in an answer to a Written Question (also attached) is that the much-touted International, Large Business and Investigations Branch was merely formed by reorganizing existing parts of CRA, and specifically “did not necessitate an increase or transfer of resources”.
The CRA continues to hide behind weasel words. Their statement includes the Agency’s claim that “two-thirds of the CRA’s audit fiscal impact of $25 billion over the last two years was from audits of international, large business and aggressive tax planning activities”. The question is how much they have actually collected; information they never disclose.
They also describe hundreds of audits and dozens of investigations, but when you go to the CRA website to look for the results of these activities, you see very little evidence of convictions and sentences for overseas tax evasion. CRA does a very good job catching and punishing Canadians who keep their money and earnings in Canada and try to avoid paying taxes. Check the CRA website; there are all kinds of convictions for domestic tax evasion: a real estate agent in British Columbia, a propane supplier in Ontario, a businessman in Quebec. But none for overseas tax evasion are listed.
The Paradise Papers marks an opportunity for the Canada Revenue Agency to break with its past and become much more transparent and open about how it deals with overseas tax evasion and those who practise and advocate it. Canadians deserve to be told the truth by their revenue agency.
For further information:
Senator Percy Downe: 613-943-8107
Or toll free at 1-800-267-7362
www.sen.parl.gc.ca/pdowne |
