June 13, 2013
Update: Overseas Tax Evasion and the Parliamentary Budget Officer
The Saga Continues
Charlottetown Senator Percy Downe has received correspondence from the Interim Parliamentary Budget Officer (PBO) regarding the refusal of the Canada Revenue Agency (CRA) to cooperate with efforts to calculate this country’s tax gap (the difference between what is owed in taxes and what is actually collected).
In May 2013, Downe wrote to Sonia L'Heureux, Interim Parliamentary Budget Officer, asking for an update on her office’s efforts to determine the gap. She responded with a copy of a letter she had sent to Andrew Treusch, Commissioner of the CRA. In it, she responds to CRA reluctance to provide their own estimate of the tax gap by proposing two alternatives:
- PBO compensate CRA for the reasonably incurred expense of preparing the required data; or
- PBO be given access to CRA’s records to provide the data itself.
In essence, the PBO is so confident that an estimate of the tax gap can, and should, be prepared, that it is willing to pay the CRA to provide the information it has requested. This in spite of the fact that the Parliament of Canada Act already requires all departments of the Government to provide “free and timely access to any financial or economic data in the possession of the department that are required for the performance of (the PBO’s) mandate.” (Section 79.3)
A dozen members of the Organization for Economic Cooperation and Development, including the United States (which estimates its tax gap to be $385 billion) and the United Kingdom (which estimates its gap at £32 billion), compile regular estimates of their respective tax gaps. If other countries have seen the value in such an exercise –the question becomes: Why is the CRA continuing to refuse to cooperate on this important initiative and even going so far as to prevent the PBO from examining it as well?
Earlier this year, Revenue Minister Gail Shea said that she is “considering the PBO’s request, and will respond in due course”.
“The time for ‘considering’ is past. Canadians deserve the facts, and only by having them can they fully understand the extent of the problem of overseas tax evasion and just how much tax revenue our country is losing. I call upon Minister Shea to direct the CRA to cooperate with the Parliamentary Budget Officer and provide her with the information she needs to perform her vital work,” concluded Downe.
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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