Minister Morneau Announces Next Steps in Improving Fairness in the Tax System by Closing Loopholes and Addressing Tax Planning Strategies
July 18, 2017 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada is working to create a healthy and growing economy in which businesses generate well-paying jobs, and where the middle class, and those working hard to join it, have confidence that they can succeed.
As part of this work, the Government is taking action to improve the fairness of Canada's tax system by closing tax loopholes and amending existing rules to ensure that the richest Canadians pay their fair share of taxes and that people in similar circumstances pay similar amounts of tax.
With this goal in mind, Finance Minister Bill Morneau today announced the launch of consultations on tax planning using private corporations. In Budget 2017, the Government signalled its intention to address tax planning strategies involving the use of private corporations; strategies that can result in high-income individuals gaining tax advantages that are not available to other Canadians. This is in addition to our work on international tax evasion and avoidance, designed to stop the use of tax havens.
"When you have an economy that works for the middle class, you have a country that works for everyone. That's the spirit in which we are asking Canadians for input into how to close loopholes and address tax planning strategies that give unfair tax advantages. Many of the richest Canadians are unfairly exploiting the tax rules designed to help businesses thrive. We know that businesses, including small businesses, help grow the Canadian economy. These tax advantages are in place to help these businesses reinvest and grow, find new customers, buy new equipment and hire more people. We want to make sure those rules are used to do just that, and not to give unfair tax advantages to certain – often high-income – individuals."
- Bill Morneau, Minister of Finance
- This Government's first action was to introduce a middle class tax cut that is benefitting nearly nine million Canadians, and to raise taxes on the wealthiest one per cent.
- The Government has also introduced the Canada Child Benefit, which is lifting hundreds of thousands of children out of poverty. Nine out of ten families are receiving more in child benefits than they did under the previous system.
- In the 2016 and 2017 budgets, the Government made significant new investments to support the Canada Revenue Agency's efforts to crack down on tax evasion and improve tax compliance.
- The Government also took legislative actions – on both the international and domestic fronts – to enhance the integrity of Canada's tax system and give Canadians greater confidence that the system is fair to everyone.
- Summary Overview: Consultations on Tax Planning Using Private Corporations
- Consultation Document: Tax Planning Using Private Corporations
- Draft Legislation and Explanatory Notes
- PowerPoint Presentation on Tax Planning Using Private Corporations [PDF 475 KB]
Media may contact:
Office of the Minister of Finance
Department of Finance Canada