Bill S-243: An Act to amend the Canada Revenue Agency Act (reporting on unpaid income tax)

Bill S-243 If you have any questions or comments regarding the accessibility of this publication, please contact us at [email protected]. First Reading Third Reading LEGISinfo Bilingual view XML PDF Skip to Document Navigation Skip to Document Content Alternate Title Canada Revenue Agency Act First Session, Forty-second Parliament, 64-65-66-67 Elizabeth II, 2015-2016-2017-2018 SENATE OF CANADA BILL S-243 An Act to amend the Canada Revenue Agency Act (reporting on unpaid income tax) AS PASSED BY THE SENATE November 27, 2018 4211311 SUMMARY This enactment amends the Canada Revenue Agency Act to require the Canada Revenue Agency to report on all convictions for tax evasion, including international tax evasion, and on the tax gap in the annual report it submits to the Minister of National Revenue for tabling in Parliament. It also requires the Minister to provide data on the tax gap to the Parliamentary Budget Officer. Available on the Senate of Canada website at the following address: www.sencanada.ca/en 1st Session, 42nd Parliament, 64-65-66-67 Elizabeth II, 2015-2016-2017-2018 SENATE OF CANADA BILL S-243 An Act to amend the Canada Revenue Agency Act (reporting on unpaid income tax) Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada enacts as follows: Alternate Title Alternate title 1 This Act may be cited as the Fairness for All Canadian Taxpayers Act (measuring the tax gap to fight international tax evasion). 1999, c. 17 Canada Revenue Agency Act 2 (1) Subsection 88(2) of the Canada Revenue Agency Act is amended by adding the following after paragraph (c): (c.‍1) a detailed list of all convictions for tax evasion, including a separate list for international tax evasion; (2) Section 88 of the Act is amended by adding the following after subsection (2): (3) Once every three years, commencing with the year that is three years after the coming into force of this subsection, the annual report required to be submitted under subsection (1) must include the statistics referred to in subsection 88.‍1(2) for the fiscal year that ends in the year that is three years before the year the annual report is submitted. 3 The Act is amended by adding the following after section 88: Definition of tax gap 88.‍1 (1) In this section, tax gap means the sum of the amount of taxes that should have been assessed under the Income Tax Act on undeclared income plus the difference between the amount of taxes assessed under that Act and the amount of taxes collected. The calculation of the tax gap is to be based on, among other things, an estimate of (a) the value of reassessments as a result of the audits of income tax returns of taxpayers, including individuals, corporations and trusts, in respect of their relevant sources of income, including employment, capital gains, dividends and interest; (b) the possibility of collecting additional revenue resulting from such reassessments; (c) the rate, established through audits, of incorrect income tax returns that were not detected before assessment; and (d) uncollected tax resulting from the non-compliance of a reporting entity with the requirement to report specified foreign property under section 233.‍3 of the Income Tax Act. Statistics on the tax gap (2) The Minister shall, for the purpose of subsection 88(3), collect, compile, analyze and abstract statistics on the tax gap in respect of taxpayers, including individuals, corporations — segmented by size — and trusts resident in Canada. Parliamentary Budget Officer (3) The Minister shall provide the Parliamentary Budget Officer with the data on the tax gap collected and compiled under subsection (2) and any additional data that the Parliamentary Budget Officer considers relevant to conducting a further analysis of the tax gap. Exception (4) Subsection 79.‍4(2) and sections 79.‍41 to 79.‍5 of the Parliament of Canada Act apply, with any necessary modifications, to the data referred to in subsection (3) as if that data were information requested under subsection 79.‍4(1) of that Act. Published under authority of the Senate of Canada Publication Explorer Publication Explorer ParlVU