The federal Finance Department released a package of proposed tax law changes for comment Friday, many of which aim to close a variety of tax loopholes.
Finance released the legislative proposals for comment, noting that many of the proposed technical changes reflect an effort to improve the fairness and clarity of the tax system, and aim to address issues that have been brought to its attention by taxpayers and their representatives.
The proposals include technical changes relating to the taxation of Canadian corporations with foreign affiliates; the application of the ‘exempt surplus’ rules to certain trusts based in Australia; and, the rules for determining the residence of international shipping corporations.
One proposal outlines when the government can share taxpayer information with law inforcement organizations
The proposals also set out the circumstances under which government officials can confidentially alert law enforcement organizations to evidence of the commission of a serious crime based on taxpayer information, such as money laundering or terrorism financing. The new section would allow a government official to provide taxpayer information to a law enforcement officer when there are “reasonable grounds” to believe that the information will provide evidence of a crime.
“This provision does not provide the [Canada Revenue Agency] with a mandate to use the information-collection authorities in the Act to conduct, or assist in the conduct of, criminal investigations,” it says. “Nor does it permit the sharing of information on the basis of mere suspicion of the commission of a criminal offence.”
Comments on the draft legislation are due by September 13.