Wealthy Canadians with hidden offshore accounts are evading up to $3 billion in tax every year, according to the first ever estimate of the international tax gap by the Canada Revenue Agency, obtained by the Star.
In a report to be made public Thursday, the government estimates Canadian individuals are hiding between $75.9 billion and $240.5 billion in offshore tax havens and elsewhere, and not paying tax on it.
The analysis “gives a sense of the potential magnitude of forgone tax revenues associated with the unreported offshore investment income earned by Canadians,” states the report. “Understanding how and why taxpayers are non-compliant is critical to help preserve the integrity of the tax system and to protect Canada’s revenue base, which supports programs and benefits delivered to Canadians.”
Allison Christians, a tax professor at McGill University, said the fact that so much wealth is being hidden offshore reveals a dangerous attitude among the wealthy. (more...)
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