The Fairness for All Canadian Taxpayers Act aims to improve transparency in tax enforcement by requiring the Canada Revenue Agency (CRA) to report on tax evasion convictions and the tax gap in its annual report. This includes enhancing accountability to taxpayers and providing detailed statistics every three years, thereby increasing awareness and potentially improving tax compliance.
Groups that may be impacted include:
The Act is likely to incur additional costs for the CRA, as resources will be needed to compile and analyze the required data. This could lead to increased operational expenses for the agency. If the CRA's budget is stretched, this could ultimately mean higher taxation or reduced services elsewhere, impacting taxpayers who may end up footing the bill.
Supporters believe this bill is essential for creating a fair tax system. They argue that by documenting convictions and analyzing tax compliance issues, the CRA can effectively target tax evaders, thereby increasing public trust. They contend that improved compliance rates could result in greater tax revenues, which would alleviate the tax burden on law-abiding citizens.
Critics argue that the added requirements could stretch CRA’s resources too thin, leading to inefficiencies and higher operational costs without a guarantee of increased revenue. They emphasize that focusing solely on enforcement could foster negative perceptions of the tax system and disproportionately penalize certain taxpayer groups. They suggest that enhancing taxpayer education and simplifying compliance would be more beneficial for achieving fairness and compliance overall.