Do Canada’s Reforms Promote Tax Fairness?

(Image: CNN.Money)

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)

You decide.

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?

More posts about Canada here, here and here

Missed yesterday’s post? It’s here

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2 thoughts on “Do Canada’s Reforms Promote Tax Fairness?

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