Category Taxation in Canada

Canada Sees a $50 Billion Tax Gap

February 14, 2017 Taxation in Canada

Canadian Tax GapOTTAWA – Canadians skip or evade as much as a quarter of all taxes owed in the country, according to the results of new research.

The results of new research completed by the Conference Board of Canada has indicated that the tax gap in Canada is now sits between CAD 8 billion and CAD 50 billion per year.

The tax gap is a measure of how much tax a government should be earning and how much tax is ultimately collected.

According to the Conference Board of Canada, tax gaps are mostly commonly caused by tax evasion, aggressive tax avoidance, non-payment of tax liabilities, and mistakes made by taxpayers, regardless of whether they are intentional or accidental.

It was noted that the tax gap across Canada may actually be much higher than calculated, as the study only concentrated on federal tax...

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Canada Foreign-Buyer Tax Proves Effective

January 9, 2017 Taxation in Canada

Vancouver 2015VANCOUVER – Canada’s attempt to use taxes to stop sky-rocketing housing prices appears to have worked, although more data is needed before authorities can confirm the full effect of the tax measure.

The latest data made available by the Ministry of Finance of Canada has shown that the number of property transactions involving foreign buyers in the province of British Columbia has fallen significantly since the introduction of a tax on foreign purchases.

Approximately 5 months ago the province of British Columbia introduced a 15 percent tax on the purchase of property by foreign buyers.

The tax was intended to rein in widespread speculative purchases by foreign investors.

Purchases by foreign buyers who do not live in Canada has been a factor widely attributed to significant rises in resi...

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Tax Changes Slash Tax Bills in Canada

December 29, 2016 Taxation in Canada

Tax changes in CanadaOTTAWA – Many Canadians will breath a sigh of relief in 2017, as new tax changes tax effect and slash tax bills country-wide.

On December 28th the Canadian Taxpayers Federation released its annual report summarising the potential effects that upcoming tax changes will have on Canadian taxpayers in the coming year.
It was claimed that the majority of Canadians throughout the country will see an overall drop in their annual tax obligations.

The major changes which will lead to the reduced taxes is a significant alternations to the Employment Insurance premiums, which will save employees an average of CAD 132 in tax each year, and a further CAD 185 per year for employers.

The other major change will be a continuation and expansion of the Canada Child Benefit system, which will predominantl...

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Canada Needs Tax Changes to Remain Competitive

November 30, 2016 Taxation in Canada

Taxes in CanadaOTTAWA – Canada needs to consider significant changes to its tax system, if it wants to remain competitive against major economies such as UK and USA.

In a new report, researchers from the Canadian School of Public Policy claimed that Canada may be losing out on international business and investment due to a local trend of raising the rate of taxes faced by businesses.

It was noted that in the report that the climate, vastness, and cost of doing business in Canada has been a detraction for international businesses looking at the country, although, in recent times Canada has been increasing its attractiveness as a business destination through a concentration on tax competitiveness.

However, recently the federal and provincial governments of Canada have opted to raise the taxes on business...

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Canada to Implement Carbon Tax

October 5, 2016 Taxation in Canada

Carbon taxOTTAWA – In a surprise move, Canada has announced that it will implement a carbon tax of CAD 10 per tonne within 2 years.

In a speech on October 4th the Prime Minister of Canada Justin Trudeau announced that by the year 2018 each province in the country will be required to implement a carbon tax.

The Prime Minister stated that each province will be required to charge carbon emitters a tax of at least CAD 10 per tonne of emissions, or to implement a cap-and-trade system which would have the same effect as a carbon tax.

Any states which will fail to implement the tax will see a generic carbon tax applied by the federal government, with a rate set at CAD 10 per tonne, to be raised by CAD 10 per tonne per year, to be capped at CAD 50 per tonne.

Explaining the need for the tax, the Prime Mini...

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