Thank you, Mr. Chair.
Good morning.
Like Mr. Ernewein, I thank you for your invitation.
We have deposited with the clerk a copy of my opening remarks. In the interest of time, I will just summarize a bit of what is contained in that document.
I'd like to describe the Canada Revenue Agency's approach to combatting aggressive international tax planning and tax evasion. Tax evasion and tax avoidance are complex global issues facing governments of all countries. Countries around the world are taking action to combat this complex problem, and Canada is no exception.
The CRA has a multi-faceted approach to addressing aggressive international tax planning and tax evasion based on several focuses.
The first is obtaining information through the use of Canada's tax treaties, tax information exchange agreements, international networks, court orders known as unnamed person requirements, and of course our audit work.
The second is conducting audits and criminal investigations to verify and correct non-compliance and to build cases for prosecution of tax evaders. We are further enhancing our large business audit approach to place greater focus on higher-risk issues such as aggressive international tax planning, which includes reviewing of transfer pricing issues.
The third is working with our colleagues from the Department of Finance and the Department of Justice to identify where legislation is being misused—these are commonly known as loopholes—and with that in mind to design amendments to prevent further misuse.
The fourth is educating taxpayers through public communications such as tax alerts and news releases to help them avoid questionable schemes and remain compliant. We publicize cases of tax evasion to deter further abuse. Increased publicity is having the desired effect. More and more taxpayers are coming forward of their own accord to correct their tax affairs.
Fifth, this goes in line with promoting our voluntary disclosure program.
In conclusion, engaging with other jurisdictions and participating in international approaches—combined with our work to detect, deter, and address tax avoidance—and legislative action offer the best strategy to deliver value for Canadians.
Thank you.