Canada has signed a multilateral agreement on reporting between countries. The first exchange of information is expected to be held in June 2018.
Budget Canada 2016 includes a proposal to require companies with annual revenues of the consolidated group of USD 750 million or more, to submit annual reports on their income and taxes paid and accrued on the number of employees, capital, retained earnings and tangible assets for each tax jurisdiction in which they do business.
Canada has the opportunity to share the information contained in the reports with tax treaty partners which also comply with the necessary standards of accountability. According to the Agency Revenue Canada, this information will allow countries to improve their ability to check and detect aggressive international scheme of tax evasion, as well as contribute to making global operations affected companies more transparent and that they pay the relevant taxes in the country which is generated by their profit.
Currently 32 jurisdictions have signed the agreement on the international exchange of information.
Canada noted that the signing of the agreement is part of a four-point action plan to address tax evasion. The Action Plan includes measures to expand the sources of information, to strengthen its cooperation with international partners.
Revenue Minister Diana Lebouthillier said: “Our government in the framework of this important international agreement will support efforts around the world to strengthen the rules of international taxation and prevent tax evasion Canada is pleased to be an active participant in the work.”