The Government of Canada released draft legislative proposals to implement common standards of tax reporting, which will enter into force on 1 July 2017.
As of this date, Canadian financial institutions are required to have procedures to identify accounts belonging to non-residents. Then they must report certain information to the Agency of Canada revenue.
Canada is one of more than 90 jurisdictions that are committed to the implementation of accounting standards. Agreement on the exchange of statements from other jurisdictions will strive to ensure that each jurisdiction has adequate capacity and guarantee for the exchange of information.
Department of Finance said that the information received from the tax returns of the partners jurisdictions, will help Canada to better fight against tax evasion and ensure tax compliance and protect the integrity of the tax system.
Consultations will be closed July 15, 2016. These consultations will announce new measures to combat tax evasion.
The government also stated that it will establish an advisory offshore committee which will develop a strategy to help alleviate and prevent offshore non-compliance with tax reporting and will provide recommendations on the measurement of the tax gap. 100 additional auditors will investigate the risks of multinational corporations and a special audit of the program will be set up to dedicate to the obstacle evasion and tax avoidance schemes organizations.