CPA Canada to the OECD: Don’t overburden law-abiding taxpayers

Can international tax authorities get enough data to enforce tax laws without saddling honest businesses and individuals with heavy reporting burdens? Read our response to the OECD on mandatory disclosure.

Read CPA Canada’s response to the OECD’s proposals.

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Proposals for a standard framework for mandatory tax disclosure are the subject of Action 12 of the Organisation for Economic Co-operation and Development (OECD)’s Action Plan on Base Erosion and Profit Shifting. The intention is to arm the world’s tax authorities with the information they need to review tax avoidance strategies and determine if they are abusive.

Abusive tax practices hurt the global economy and we welcome the OECD’s coordination of international efforts to prevent them. In a submission to the OECD’s consultation paper on Action 12, Chartered Professional Accountants of Canada (CPA Canada)’s Industry Tax Committee raises concerns with the OECD proposals.

Addressing the lack of data available to tax authorities for enforcing tax laws, the committee emphasizes that the OECD should ensure the compliance burden and business impact on law-abiding taxpayers are proportionate with the expected benefits.