Bill S-226
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2nd Session, 41st Parliament,
62-63-64 Elizabeth II, 2013-2014-2015
senate of canada
BILL S-226
An Act to amend the Canada Revenue Agency Act (reporting on unpaid income tax)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada enacts as follows:
ALTERNATE TITLE
Alternate title
1. This Act may be cited as the Fairness for All Canadian Taxpayers Act (measuring the tax gap to fight overseas tax evasion).
1999, c. 17
CANADA REVENUE AGENCY ACT
2. 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 overseas tax evasion;
(c.2) the statistics on the tax gap compiled and analyzed on behalf of the Minister under subsection 88.1(2);
3. The Act is amended by adding the following after section 88:
Definition of “tax gap”
88.1 (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 the Income Tax Act and the amount of taxes collected, including 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 interests;
(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) the tax uncollected resulting from the non-compliance of a reporting entity with the requirement to report specified foreign property under section 233.3 of that Act.
Statistics on the tax gap
(2) The Minister shall, on an annual basis, collect, compile, analyze and abstract statistics on the tax gap in respect of taxpayers, including individuals, corporations — segmented by size — and trusts resident in Canada.
Parliamentary Budget Officer
(3) The Minister shall provide the Parliamentary Budget Officer with the data on the tax gap collected and compiled under subsection (2) and any additional data that the Parliamentary Budget Officer considers relevant to analyze the tax gap further.
Confidentiality
(4) The Parliamentary Budget Officer, and every person acting on behalf or under the direction of the Parliamentary Budget Officer, shall not disclose any data that come to their knowledge under subsection (3), unless the disclosure is essential for the performance of his or her mandate and the data to which the disclosure relates are not information described in subsection 13(1), section 14, any of paragraphs 18(a) to (d), section 18.1, any of paragraphs 20(1)(b) to (d) or section 20.1 of the Access to Information Act.
Published under authority of the Senate of Canada
Explanatory Notes
Canada Revenue Agency Act
Clause 2: Relevant portion of subsection 88(2):
(2) The annual report must include
. . .
(c) a summary statement of any assessment prepared under section 59;
Clause 3: New.