The Harper government's announcement last week that will target Canadians who cheat the taxman by hiding income and assets overseas is good news for Alberta.
Starting this year, the federal government will impose tougher reporting conditions on Canadians making foreign investment income.
As well, residents who hold foreign property with a value over $100,000 will be required to provide additional information to the Canada Revenue Agency (CRA).
“Our government is committed to combating tax evasion and getting tough on tax cheats,” said Gail Shea, Minister of National Revenue. “We have introduced important new measures to strengthen the CRA's ability to audit and investigate taxpayers who may be hiding offshore property.
“Stronger reporting requirements will provide the CRA with more information to crack down on those who attempt to cheat the system.”
Despite the contentions of some, tax evasion isn't a victimless crime and anything that can be done to ensure that the public purse gets what it rightly deserves is a benefit to all law-abiding taxpayers, including West Central Alberta residents.
While the majority of Canadians investing offshore do so honestly and in a transparent fashion, there are, unfortunately, still many cases of residents making money and then failing to pay taxes on the income.
In an effort to change things, the new measures being put in place by the Harper government include a requirement to name the specific foreign institution or other entity holding funds outside Canada, specify the country to which the foreign property relates, and identify all income generated from that foreign property.
In addition to the new filing requirements, the government has also launched the new Stop International Tax Evasion Program, made it mandatory to report international electronic fund transfers over $10,000, and made it easier for the CRA to obtain information from third parties such as banks.
“Our members support the fight against tax evasion, as it hurts all Canadians by reducing government revenue that other law abiding taxpayers are required to make up, and providing an unfair advantage to those seeking to cheat the system,” said Carole Presseault, spokesperson with the Certified General Accountants Association of Canada.
While no one would argue with people wanting to make wise and profitable investments, both in Canada and internationally, failing to pay the required taxes on those investments costs law-abiding residents who have to make up the difference.
As such, the Harper government should be applauded for doing more to make sure all Canadians pay their fair share of taxes – and that includes residents who invest in foreign counties.
