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Tax Policy Comparison:
CORPORATE TAXATION POLICY #3
| Tax Policy Comparison: CORPORATE TAXATION POLICY #3 |
Conservative Party | Liberal Party |
|---|---|---|
| POLICY | Closing of Offshore Tax “Loopholes” | N/A |
| DATE | April 8, 2025 | N/A |
| URL | View Policy | No Policy to View |
| DESCRIPTION & COMMENT |
The Conservatives made the following announcement: Conservatives will: 1. Close Carney’s offshore tax loopholes. Poilievre has already announced that he will appoint a Bring It Home Tax Task Force to make tax rules fairer, simpler and easier to administer. The same task force will also ensure that we close all the loopholes that allow companies like Brookfield to stash their money in offshore tax havens to avoid paying their fair share here in Canada. 2. Redirect CRA resources away from auditing and harassing small business owners and charities towards cracking down on offshore tax havens — collecting at least $1 billion more every year from those who try to hide their wealth overseas. 3. Create a name-and-shame website to expose all the wealthy multinational corporations that are dodging taxes and refusing to pay their fair share. 4. Expand the Offshore Tax Informant Program, giving whistleblowers up to 20% of recovered funds when they help expose illegal tax schemes. Around the world, politicians of all stripes often call for “offshore tax loopholes” to be closed. While the statement is broad and ultimately the devil is in the details, this particular call is obviously in response to how Brookfield – the Canadian company that Mr. Carney used to be Chairman of and recently moved its head office from Canada to the U.S. – has structured some of its holdings and funds. One of the stated objectives of the Tax Reform Task Force (previously announced as a policy by the Conservatives in June 2024…see Tax Reform Overview above) is to look at how Canada taxes international profits. Having said that, I think it’s fair to say that politicians of all stripes oversimplify this very complex area of taxation and any Tax Reform Task Force that tackles this would have its hands full on reviewing what currently works and what doesn’t. Obviously, it would also look at the idea of a “name and shame” website to determine feasibility. The idea of redirecting CRA auditing resources away from small businesses to large international multi-nationals conceptually makes sense to me. The amount of money, time and effort that small business expends in responding to CRA audits – many of which are a complete waste of time and effort – is tremendous. Finally, expanding the existing Offshore Tax Informant Program – established by the 2013 Federal Budget and implemented by the CRA in January 2014 – is being proposed. The Program currently offers financial rewards to individuals who provide specific and credible information about significant offshore tax evasion or aggressive tax avoidance that leads to the collection of at least $100,000 in additional federal taxes. Informants may receive between 5% and 15% of the federal tax collected as a result of the information provided. The exact percentage depends on factors such as the quality and relevance of the information, the level of cooperation from the informant, and the value of the information to the CRA. Notably, rewards are only paid after the CRA has successfully collected the taxes owed, and all appeal rights have expired. It appears the Conservatives want to increase the financial payouts / incentives from a ceiling of 15% of the federal tax collected to 20%. |
N/A |
Tax Policy Comparison:
CORPORATE TAXATION POLICY #3
Tax Policy Comparison: Corporate Taxation Policy #3
Conservative Party
Date: April 8, 2025
Summary:
Closing of Offshore Tax “Loopholes”
Description & Comment:
The Conservatives made the following announcement:
Conservatives will:
1. Close Carney’s offshore tax loopholes. Poilievre has already announced that he will appoint a Bring It Home Tax Task Force to make tax rules fairer, simpler and easier to administer. The same task force will also ensure that we close all the loopholes that allow companies like Brookfield to stash their money in offshore tax havens to avoid paying their fair share here in Canada.
2. Redirect CRA resources away from auditing and harassing small business owners and charities towards cracking down on offshore tax havens — collecting at least $1 billion more every year from those who try to hide their wealth overseas.
3. Create a name-and-shame website to expose all the wealthy multinational corporations that are dodging taxes and refusing to pay their fair share.
4. Expand the Offshore Tax Informant Program, giving whistleblowers up to 20% of recovered funds when they help expose illegal tax schemes.
Around the world, politicians of all stripes often call for “offshore tax loopholes” to be closed. While the statement is broad and ultimately the devil is in the details, this particular call is obviously in response to how Brookfield – the Canadian company that Mr. Carney used to be Chairman of and recently moved its head office from Canada to the U.S. – has structured some of its holdings and funds. One of the stated objectives of the Tax Reform Task Force (previously announced as a policy by the Conservatives in June 2024…see Tax Reform Overview above) is to look at how Canada taxes international profits. Having said that, I think it’s fair to say that politicians of all stripes oversimplify this very complex area of taxation and any Tax Reform Task Force that tackles this would have its hands full on reviewing what currently works and what doesn’t. Obviously, it would also look at the idea of a “name and shame” website to determine feasibility.
The idea of redirecting CRA auditing resources away from small businesses to large international multi-nationals conceptually makes sense to me. The amount of money, time and effort that small business expends in responding to CRA audits – many of which are a complete waste of time and effort – is tremendous.
Finally, expanding the existing Offshore Tax Informant Program – established by the 2013 Federal Budget and implemented by the CRA in January 2014 – is being proposed. The Program currently offers financial rewards to individuals who provide specific and credible information about significant offshore tax evasion or aggressive tax avoidance that leads to the collection of at least $100,000 in additional federal taxes. Informants may receive between 5% and 15% of the federal tax collected as a result of the information provided. The exact percentage depends on factors such as the quality and relevance of the information, the level of cooperation from the informant, and the value of the information to the CRA. Notably, rewards are only paid after the CRA has successfully collected the taxes owed, and all appeal rights have expired. It appears the Conservatives want to increase the financial payouts / incentives from a ceiling of 15% of the federal tax collected to 20%.
View Policy
Summary:
Closing of Offshore Tax “Loopholes”
Description & Comment:
The Conservatives made the following announcement:
Conservatives will:
1. Close Carney’s offshore tax loopholes. Poilievre has already announced that he will appoint a Bring It Home Tax Task Force to make tax rules fairer, simpler and easier to administer. The same task force will also ensure that we close all the loopholes that allow companies like Brookfield to stash their money in offshore tax havens to avoid paying their fair share here in Canada.
2. Redirect CRA resources away from auditing and harassing small business owners and charities towards cracking down on offshore tax havens — collecting at least $1 billion more every year from those who try to hide their wealth overseas.
3. Create a name-and-shame website to expose all the wealthy multinational corporations that are dodging taxes and refusing to pay their fair share.
4. Expand the Offshore Tax Informant Program, giving whistleblowers up to 20% of recovered funds when they help expose illegal tax schemes.
Around the world, politicians of all stripes often call for “offshore tax loopholes” to be closed. While the statement is broad and ultimately the devil is in the details, this particular call is obviously in response to how Brookfield – the Canadian company that Mr. Carney used to be Chairman of and recently moved its head office from Canada to the U.S. – has structured some of its holdings and funds. One of the stated objectives of the Tax Reform Task Force (previously announced as a policy by the Conservatives in June 2024…see Tax Reform Overview above) is to look at how Canada taxes international profits. Having said that, I think it’s fair to say that politicians of all stripes oversimplify this very complex area of taxation and any Tax Reform Task Force that tackles this would have its hands full on reviewing what currently works and what doesn’t. Obviously, it would also look at the idea of a “name and shame” website to determine feasibility.
The idea of redirecting CRA auditing resources away from small businesses to large international multi-nationals conceptually makes sense to me. The amount of money, time and effort that small business expends in responding to CRA audits – many of which are a complete waste of time and effort – is tremendous.
Finally, expanding the existing Offshore Tax Informant Program – established by the 2013 Federal Budget and implemented by the CRA in January 2014 – is being proposed. The Program currently offers financial rewards to individuals who provide specific and credible information about significant offshore tax evasion or aggressive tax avoidance that leads to the collection of at least $100,000 in additional federal taxes. Informants may receive between 5% and 15% of the federal tax collected as a result of the information provided. The exact percentage depends on factors such as the quality and relevance of the information, the level of cooperation from the informant, and the value of the information to the CRA. Notably, rewards are only paid after the CRA has successfully collected the taxes owed, and all appeal rights have expired. It appears the Conservatives want to increase the financial payouts / incentives from a ceiling of 15% of the federal tax collected to 20%.
View Policy
Liberal Party