Is Canada legislating ‘tax fairness? If so, for whom?
Here’s a list of some proposed changes about which the Canadian government has invited consultations until September 13; a week after this year’s G20 summit takes place in St. Petersburg Russia.
- A new regime for Canadian foreign affiliates to guarantee an appropriate income inclusion for “stub-year foreign accrual property income” on dispositions of foreign affiliate shares;
- Proper enforcement of “exempt surplus” rules in the case of certain trusts resident in Canada, in which a controlled foreign affiliate has a beneficial interest;
- Changes to the country’s base-erosion rules, and the suitable application of the rules relating to structures that include partnerships;
- Overhaul of the circumstances when taxpayer information can be used by government officials to alert law enforcement organizations as evidence of the commission of a serious crime, such as money laundering or terrorism financing; and
- Reforms to the system for determining the residence of international shipping corporations.
(Canadian Prime Minister Stephen Harper. Image: Huffington Post)
As you mull this over consider this example of a ‘fairness’ driven tax reform agenda by a Canadian-based lobby:
- Broaden the income tax base to reflect the individual’s actual command over resources.
- Rationalize tax expenditures.
- Increase top marginal income tax rates.
- Stop the corporate tax “race to the bottom”.
- Use consumption taxes cautiously.
- Implement a basic or guaranteed income.
Now where do you stand?
Missed yesterday’s post? It’s here