S-25814470-71Elizabeth II – 1-2 Charles III2021-2022-2023-2024An Act to amend the Canada Revenue Agency Act (reporting on unpaid income tax)Fairness for All Canadian Taxpayers Act (measuring the tax gap to fight international tax evasion)An Act to amend the Canada Revenue Agency Act (reporting on unpaid income tax)20246

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SUMMARYThis enactment amends the Canada Revenue Agency Act to require the Canada Revenue Agency to list all convictions for tax evasion — including international tax evasion — in the annual report it submits to the Minister of National Revenue. It also requires the Agency, once every three years, to include statistics on the tax gap in the annual report. In addition, this enactment specifies that the Minister is to provide data on the tax gap to the Parliamentary Budget Officer.

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada enacts as follows:Alternate Title

Alternate title1This Act may be cited as the Fairness for All Canadian Taxpayers Act (measuring the tax gap to fight international tax evasion).

1999, c. 17Canada 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):Statistics on the tax gap(3)Once every three years, beginning with the year that is three years after the coming into force of this subsection, the annual report required 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.

3The Act is amended by adding the following after section 88:

Definition of tax gap88.1(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 must 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)For the purpose of subsection 88(3), the Minister must collect, compile, analyze and abstract statistics on the tax gap in respect of each category of taxpayers, including individuals, corporations — segmented by size — and trusts resident in Canada.Parliamentary Budget Officer(3)The Minister must provide the Parliamentary Budget Officer with the tax gap data 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.