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ARTICLE · 01 JUNE 2021

Budget 2021: Includes New And Enhanced Tax Administration And Enforcement Measures

Gowling WLG
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The government declared that Federal Budget 2021 ("Budget 2021") is about finishing the fight against COVID-19 and creating prosperity for Canadians in the decades to come.

CanadaTax
Stevan Novoselac
Stevan Novoselac
John Sorensen
John Sorensen
Jim Wilson
Jim Wilson
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The government declared that Federal Budget 2021 ("Budget 2021") is about finishing the fight against COVID-19 and creating prosperity for Canadians in the decades to come. Supporting this stated objective are new and enhanced tax administration and enforcement measures targeted at increasing tax revenues, including strengthening mandatory disclosure rules, proposed new measures to combat international tax avoidance, tackling tax evasion, aggressive tax avoidance and schemes to avoid collections, as well as enhanced Canada Revenue Agency ("CRA") audit powers.

Mandatory disclosure rules

Budget 2021 cites a lack of timely information concerning so-called aggressive tax planning as a major challenge for tax administrations. The government's lack of success in its existing legislative and litigation agendas, which were undertaken to peel back the tax planning curtain, likely informed the disclosure rule proposals in Budget 2021. Comments on the proposals may be

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