Canada publishes tax gap estimation report, Jumbo Value

OTTAWA, DDTCNews – Canada Revenue Agency (CRA) publishes its inaugural report tax gap or the amount of tax not paid by Canadian taxpayers during the 2014 to 2018 tax years.

In the report, it is known that the value of tax revenue from 2014 to 2018 was CA$111.2 billion. score tax gap This equates to 9% of total tax revenue.

“We see a shortfall tax gap This is a significant result of efforts to improve compliance so far,” CRA Director Kelly Taylor quoted Saturday (2/7/2022).

Also read: Carbon tax deposits are not expected to be large, said the special staff of the Finance Minister

In more detail, the value of unpaid personal income tax in 2014 to 2018 is estimated to be approximately CA$41.9 billion to CA$52.8 billion. The value of unpaid corporate income tax reached CA$36.6 billion from CA$23.1 billion during the same period.

Without actions such as inspections imposing sanctions on non-compliant taxpayers, the value of taxes paid in 1 tax year would be high.

For example, in 2018 the value of tax gap The total reached CA$40.4 billion from CA$35.1 billion without taking into account the actions of the tax authorities. With follow-up for non-compliance, the value of tax gap Successfully reduced from CA$18.1 billion to CA23.4 billion.

Also Read: Article 23 How To Apply For Income Tax Free Certificate

Backed by various monitoring and billing efforts, value tax gap This could be reduced from 39% to 45% in 2014 to 2018.

Going forward, CRA will publish estimates regularly tax gap for the people. Transparency with respect to estimates tax gap Deemed necessary to improve compliance while maintaining the integrity of the tax system.

“by guessing tax difference, The CRA can better understand the reasons for non-compliance. The CRA in its report wrote that this understanding would be used as a basis for officers to implement policies and provide services to taxpayers. (SAP)

ALSO READ: Windfall tax not enough, Malaysia finds other strategies to boost revenue

Subscribe

Get the best of Newspaper delivered to your inbox daily

Most Viewed

Related Stories