How is the federal government expanding mandatory tax disclosure requirements?
The federal government has been consulting Canadians on expanded tax reporting requirements aimed at detecting and preventing inappropriate tax plans.
- in the 2021 federal budget, the government wrote: “The lack of timely, comprehensive and relevant information on aggressive tax planning strategies is one of the main challenges faced by tax authorities worldwide.”
- to address this the budget had a 60-day conuslutation period to address more detailed reporting requirements for some types of transactions
- you can find the federal government backgrounder and propsals here
As currently drafted, the proposals are organized in three components that would:
- expand the current rules for reportable transactions
- introduce a new requirement to report notifiable transactions
- add a new requirement for specified corporations to report uncertain tax treatments (UTT)
You can find out more details here at CPA Canada's tax blog