Department of Finance Canada Releases Annual Report on Federal Tax Expenditures
February 23, 2017 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada's commitment to fairness for the middle class includes ensuring a modern and efficient tax system that is simple and properly targeted.
To this end, and in keeping with the Government's commitment to openness and transparency, the Department of Finance Canada today released the 2017 Report on Federal Tax Expenditures—Concepts, Estimates and Evaluations.
This report provides estimates of the fiscal cost of federal tax measures designed to ensure the proper functioning of the federal tax system and support the priorities of the Government. In addition, the report presents background information on each tax expenditure, including a description, objectives, historical information, and references to related federal spending programs.
This year's edition also includes three analytical papers:
- An evaluation of the Children's Fitness Tax Credit and Children's Arts Tax Credit, inefficient measures which were eliminated in favour of a new, simpler, more generous and better-targeted Canada Child Benefit;
- An evaluation of the Goods and Services Tax Credit; and
- A statistical analysis of federal tax expenditures from 1991 to 2015.
The Government remains committed to ensuring the tax system—including federal tax expenditures—is efficient, responsible and fair. This is why work continues on a review of the tax system as a whole, with a view to eliminating poorly targeted and inefficient tax measures and providing fairness for middle class families.
The release of today's report coincides with the tabling of the Main Estimates in the House of Commons by the President of the Treasury Board, providing Members of Parliament with comprehensive information about federal tax expenditures.
- The Government's Report on Federal Tax Expenditures—Concepts, Estimates and Evaluations is an annual publication that provides important information on the objectives, design and cost of federal tax expenditures.
- The Government of Canada first reported on federal tax expenditures in 1979. It has published estimates of tax expenditures for personal and corporate income taxes, as well as for the Goods and Services Tax, since 1994.
- Tax expenditure reporting is considered an international best practice to foster government budgetary and fiscal transparency.
- International organizations have recognized the quality of Canada's reporting on federal tax expenditures, notably with respect to the number of tax measures and years for which cost information is presented, the detailed methodological information provided, and the publication of evaluations and analytical papers.
Media may contact:
Office of the Minister of Finance
Department of Finance Canada