The biggest issue that has been advocated by auditors at the Canada Revenue Agency, based on their work, is to focus on corporate tax evasion. The scale is much larger. The PBO has identified that as much as $25 billion a year could be accessible or unlocked from tax havens if the right provisions were in place. In order to do that, it's really necessary to reorient the way the tax system is structured and to reform the current state.
Right now when an international corporation makes a sale, they have some discretion to transfer the profit or to modify the price within internal supply chains to book the value of that sale in a low-tax jurisdiction. From the standpoint of CRA auditors, it's a game of cat and mouse to try to figure out exactly what the fair market value of that transaction was and determine whether or not it was on the level.
In order to tip the scales back in favour of companies being taxed fairly everywhere, there's a specific combination of different reforms that can be put in place, or broad principles, a combination of which would solve the problem.
One is a formulary allocation of profits, which is basically a change in criteria that are currently in use in Canada that determine how corporations' profits are booked from province to province.
The other is unitary treatment to make sure that when these transactions happen between a parent company and a subsidiary, leading to this transfer pricing and profits being booked in low-tax jurisdictions instead of where the commerce actually happens, the corporations are treated globally as a unitary entity—