VANCOUVER, March 22 Some wealthy Canadians are
hiding "substantial" amounts of revenue offshore, Finance
Minister Jim Flaherty said on Friday, a day after unveiling a
new plan to crack down on tax cheats and pay individuals who
come forth with information on them.
Flaherty's budget on Thursday proposed a series of measures
to close tax loopholes and reduce international tax evasion and
avoidance, part of a broader effort to boost revenues and
eliminate the country's budget deficit by 2015.
Despite a campaign by the Conservative government since 2006
to discourage use of tax havens and improve tax compliance,
Flaherty said there was still a lot of money being hidden from
"There's still substantial tax avoidance and tax evasion and
some of it through quite sophisticated methods by relatively
wealthy people," he told reporters in Vancouver after a speech.
The budget estimated the proposed changes - which range from
requiring banks to report international transfers of more than
C$10,000 to enhancing corporate anti-loss trading rules - would
increase tax revenues by C$4.4 billion ($4.3 billion) over the
next five years.
But Flaherty said he expected the additional revenue to be
much higher because the tax collection agency is only able to
make a partial estimate of how much is currently slipping
through the cracks.
"There are some loopholes that the Canada Revenue Agency
cannot estimate the results to be, so for those ones we put
nothing in the budget," he said.