Premiers need to act on tax havens and the CRA
Ottawa (27 Aug. 2014)—Premiers and territorial leaders in Charlottetown for the Council of the Federation need to demand the federal government and the Canada Revenue Agency (CRA) stem the flow of Canadian money offshore because it is depleting revenues by at least $7.8 billion each year. Retrieving that money could prevent cuts to provincial services and avoid harmful austerity measures that have negative impacts on everything from transportation and environmental safety to education.
Provinces have a role to play with CRA
Provincial governments are responsible for nominating members of the CRA Board of Management. Those members should be directed to strongly encourage the agency to give higher priority to tax haven related compliance, says Dennis Howlett, Executive Director of Canadians for Tax Fairness.
“There is a direct link between lost provincial revenues and cuts at the CRA,“ says Howlett. ”The taxable portion of that money belongs in Canada – not hidden in shell companies and secret accounts in Barbados, Cayman Islands and Luxembourg.”
Use of tax havens has exploded
Most provincial and territorial governments rely on the Canada Revenue Agency to raise their revenue. Under the CRA’s watch, Canadian money in tax havens has ballooned to an all-time high – an estimated $185 billion in 2013. Almost $63 billion of that is in the popular tax haven of Barbados – an island paradise that is one-tenth the size of PEI, where the premiers are enjoying their late summer gathering.
The provincial representatives on the CRA Board of Management also need to ask why the CRA is wasting so much of their scarce capacity harassing development and environmental charities that have been critical of the Harper government, Howlett says.
Canadians for Tax Fairness is a not-for-profit, non-partisan organization advocating for fair and progressive tax policies aimed at building a strong and sustainable economy, reducing inequalities and funding quality public services. The National Union of Public and General Employees (NUPGE) is a supporter of Canadians for Tax Fairness.
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The National Union of Public and General Employees (NUPGE) is one of Canada’s largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
