Let the Trudeau Government know you want Canada to act now to fix the loopholes that still allow large mining corporations to avoid paying taxes on the profit they make from Canadian non-renewable mining resources: [email protected], [email protected], [email protected]
Below are 3 important articles and reactions from different experts relating the recent Court ruling on the Cameco mining case vs Canada Revenue Agency (CRA). The CRA alleged that Cameco avoided over 2 billions in tax payments from 2003 to 2012 using a transfer pricing tax scheme with a subsidiary of 2 employees in Switzerland. The Court ruled in favor for Cameco for the years 2003, 2005 and 2006, but not for the following years 2007-2012. CRA could also bring a similar case for the years 2013-2017. CRA has until Oct.26 to appeal this first Court decision, or decide on other course of actions. In the meantime, experts say it may be time to change the laws and close the loopholes once and for all.
Also, the OECD released TODAY a series of 'new practice notes' for countries dealing with potential problems of tax avoidance/evasion in the mining sector: http://www.oecd.org/tax/oecd-and-igf-release-first-set-of-practice-notes-for-developing-countries-on-beps-risks-in-mining.htm?utm_source=Adestra&utm_medium=email&utm_content=First%20set%20of%20practice%20notes%20for%20developing%20countries%20on%20BEPS%20risks%20in%20mining&utm_campaign=Tax%20News%20Alert%2019-10-2018&utm_term=demo
'Devan Mescall, a corporate tax expert at the University of Saskatchewan’s Edwards School of Business, said transfer pricing can often lead to differences of opinion, as it requires decisions to be made based on assumptions about prices in the future. Anger about the Court decision should not be focused on Cameco, but instead channelled into lobbying for tax rules that “provide less uncertainty and more clarity” when it comes to practices like transfer pricing, he said. “If you change the rules, the behaviour of these corporations will change as well.” https://thestarphoenix.com/news/local-news/activists-call-on-cra-to-appeal-decision-in-cameco-tax-fight
“So, do large Canadian corporations avoid billions of dollars of taxes each year? You bet they do. And other taxpayers – you and I – have to ante up the shortfall. Canadian tax rules are in desperate need of repair. If the federal Department of Finance is not up to the task, the government should appoint a fair-minded and non-partisan group of tax experts to do the work.” – Allan Lanthier is a former chair of the Canadian Tax Foundation, and a retired partner of Ernst & Young. https://www.theglobeandmail.com/business/commentary/article-the-secret-world-of-corporate-tax-avoidance/
“The Liberal government has been promising to tackle tax havens since before they got elected. It is time to turn those words into real action. The government has increased funding for the CRA for enforcement, but if the law is not strong enough, they are doing their job with one hand tied behind their back. Solid enforcement is not possible without solid laws to enforce.” http://www.taxfairness.ca/en/news/cameco-ruling-shows-need-outlaw-tax-haven-use