• Canada Releases Proposed Information Reporting Requirements for Tax Avoidance Transactions
  • May 17, 2010 | Authors: Larissa V. Tkachenko; Stephanie A. Wong
  • Law Firm: Borden Ladner Gervais LLP - Toronto Office
  • On May 7, 2010, the Department of Finance Canada released for public consultation proposals to establish an information reporting regime for certain tax avoidance transactions. The policy objective of the proposed regime, which was initially announced in the 2010 Federal Budget, is to ensure the fairness and integrity of Canada’s income tax system, while the practical objective is to assist the Canada Revenue Agency (“CRA”) in identifying aggressive tax planning transactions for further scrutiny. With these proposals, Canada is following in the footsteps of the U.K., the U.S. and the province of Quebec in exerting more pressure on Canadian taxpayers who undertake aggressive tax planning.