Changes in regulations should force corporations to pay all tax assessed within 30 days to avoid a 5% monthly interest charge. After 30 days all assessed tax should be placed in escrow with the Bank of Canada until final determination is made. If we are serious about collecting all taxes free from political side deals, it’s possible to do so.
Canadian corporations failed to pay between $9.4 billion and $11.4 billion in taxes in 2014, according to the first comprehensive analysis of the country’s corporate “tax gap” — the difference between taxes legally owed and those collected — being released today by the Canada Revenue Agency.
That means 24 to 29 per cent of all the corporate income tax legally due in Canada didn’t get paid that year.
The long-awaited calculations — which follow on similar studies in more than a dozen other Western countries — show the scope and source of unpaid taxes by delinquent corporations that keep billions of dollars from federal tax coffers every year.
“The results that we’re getting on corporate income tax … are quite similar to other countries in terms of per cent of revenues,” said Mireille Ethier, a director general with the CRA.
The country’s tax hit was reduced significantly by CRA audits that found $6.1 billion of the unpaid bills — reducing the tax gap by 55 to 65 per cent — the report says.
But that money is not yet fully recovered, said Yves Giroux, Canada’s Parliamentary Budget Officer who reviewed the CRA’s report in advance of release. SOURCE