Use of tax havens - The CPA Order supports all of the Committee on Public Finance’s recommendations
“The population has a right to expect bold and decisive action to put an end to abusive tax avoidance schemes and tax evasion, and the use of tax havens. The different levels of government can count on the cooperation of both the Order and the accounting profession in implementing the committee’s recommendations,” said Geneviève Mottard, CPA, CA, President and Chief Executive Officer of the Order.
- Recognizing the importance of the committee’s deliberations and analysis, the Order particularly supports the recommendations that directly concern the profession, specifically recommendations 24, 34 and 35, which seek to criminalize professional assistance in abusive tax avoidance and tax evasion schemes.
- The Order is disappointed that the committee failed to address the need to have professional firms monitored by professional orders, as recommended by the Charbonneau Commission. The Order calls for additional powers to make accountable those charged with governance in such entities and any other type of legal structure (NFPOs, cooperatives, etc.). Note that CPA Ontario oversees Ontario-based accounting firms.
- The Order is an active member of a Canadian working group which, among other things, is reviewing the oversight of professional tax-related practice.
- The Order is implementing a working group tasked with examining areas where it can intervene to better support its members, whether through professional inspection, monitoring of professional practice or compulsory continuing education in ethics, and determining whether regulatory changes are required. The committee’s review and recommendations will inherently inform the process.
- The Order is pleased with recommendations 1 and 3 on taxing diverted profits and online transactions, both of which are consistent with recommendations the Order submitted to the Minister of Finance in the latest pre-budget consultations.
The tax competition among countries contributes to a climate that leads to abuse. All are both instigators and victims of a system that they cannot change on their own. Quebec and Canada are no exception.
“Beyond the remarkable work done by the committee, the fact remains that the fight against tax evasion must be carried out in a concerted manner, first by the Canadian provinces and the federal government, and then by international organizations and a significant number of nations. This is the challenge we now need to address”, said Ms. Mottard.
About the Quebec CPA Order
The Ordre des comptables professionnels agréés du Québec has 39,000 members and 5,000 future CPAs, making it the third largest professional order in Quebec. The Order ensures the protection of the public and the visibility of the profession.
It represents all areas of expertise of the accounting profession, including assurance, financial accounting, management and management accounting, finance and taxation.
Read the brief submitted by the Order in May 2016 [+]
Manager, Public Affairs
Quebec CPA Order
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