Thank you.
I would like to say that we've tabled a more fulsome set of remarks. In the interest of time, I'll keep it to the main points.
Good afternoon.
My name is Marc Lemieux, and I am the assistant commissioner of the compliance programs branch at the Canada Revenue Agency, or CRA.
The experts with me today are Eric Ferron, director general of the criminal investigations directorate; Adrianna McGillivray, director general of the compliance programs branch; and Alexandra MacLean, special adviser and acting director general of the international large business directorate.
Thank you for the invitation to appear before this committee today in order to discuss the CRA’s efforts to combat tax evasion and tax avoidance. Combatting tax evasion and tax avoidance is a priority for the CRA, and I will be sharing the progress we’re making, as well as the work that lies ahead.
Let me begin by stressing that the CRA is making significant progress in identifying and addressing aggressive tax planning, tax avoidance and tax evasion. Over the past several years, we have taken significant strides forward by investing in audits and creating new compliance programs. In 2024-25, there was a fiscal impact of about $18 billion.
We are carrying out more compliance activities and focusing on high-risk areas, particularly those involving sophisticated schemes. We are using and exploring new technologies to improve our audit and compliance programs by making them more efficient and effective.
On the international front, our collaboration with global partners continues to strengthen. Through the OECD's Forum on Tax Administration, we engage with over 50 tax administrations. We work together to share best practices and emerging trends, deal with international risks and improve compliance. This collaboration has supported the implementation of initiatives such as the OECD's common reporting standard, which gives us access to financial account information from close to 100 jurisdictions. It provides us with the data we need to uncover offshore accounts and ensure that taxpayers are paying their fair share.
However, it is important to note that holding an offshore bank account or offshore assets does not necessarily mean a taxpayer has committed any tax wrongdoing. We must take the time to carefully review the complex arrangements and ensure that there is a justified economic transaction that is aligned with the object and spirit of the Income Tax Act.
In addition, Canada is part of one of the most extensive tax treaty networks in the world. These exchanges and networks allow for better tax transparency and international co-operation.
Domestically, the government has provided us with critical legislative tools to enhance our effectiveness. For example, new mandatory disclosure rules require taxpayers and advisers to report certain transactions that could be used for aggressive tax planning. So far, we have received over 4,200 disclosures under these rules. We are examining each of them and starting audits where the disclosures reveal concerns about tax avoidance.
It is crucial for our legislative and administrative frameworks to be responsive. We are actively exploring new technologies like artificial intelligence and ensuring that our auditors and investigators have the tools they need, so that we can respond to emerging compliance risks and maintain the integrity of Canada's tax system.
Our goal is simple: to ensure a fair tax system, where everyone pays their share and Canadians can have confidence that the rules are being applied to all.
Thank you.