Improving the tax system: Tax Policy Committee meets with CRA and Finance

CPA Canada’s Tax Policy Committee (TPC) meets annually with senior government officials to explore potential solutions for improving tax administration, which has resulted in a regularly updated list of action items.

Every year, members of Chartered Professional Accountants of Canada (CPA Canada)’s Tax Policy Committee (TPC) explore potential solutions for improving tax administration with senior Canada Revenue Agency (CRA) and Department of Finance Canada officials at separate half-day meetings.

At this year’s meeting with the CRA, TPC members and government officials discussed the status of a series of action points developed over the years that aim to help the agency run an efficient and effective tax system. Action points and updates covered a range of items, including:

  • the collaborative Folio project to update and consolidate the CRA’s Interpretation Bulletins
  • early consultation of third parties on new CRA administrative initiatives
  • CPA Canada assistance in tax audit and tax technical training for auditors
  • tax service issues related to problem areas such as T1 and T3 filing deadlines, penalties related to refundable dividend tax on hand (RDTOH) filing requirements and efiling requirements

Topics on the agenda for the meeting with Finance officials included:

  • the University of Waterloo’s new Centre for Taxation for a Global Economy
  • resolving difficulties related to legislation governing T1 and T3 deadlines, immigration trusts and other problem areas
  • contingency fees for tax preparers’ work on scientific research and experimental development claims
  • Canada’s involvement with the Organization for Economic Co-operation and Development’s project to address base erosion and profit shifting issues

Outside these annual meetings, CPA Canada, the CRA and Finance continue to make progress on their mutual issues and action points.