Law would also prevent fiscal evasion: Minister
The federal government has introduced legislation that would prevent double taxation between Canada and six other countries.
Finance Minister Jim Flaherty announced the introduction of the Tax Conventions Implementation Act, 2013 on March 6.
The bill proposes to implement agreements concluded between Canada and Namibia, Serbia, Poland, Hong Kong, Luxembourg and Switzerland for the avoidance of double taxation (where the same income is taxed by two countries) and the prevention of fiscal evasion with respect to taxes, according to the Department of Finance.
The legislation would encourage cross-border trade and investment, and help fight international tax evasion, said Flaherty.
The agreements include provisions for the exchange of tax information in accordance with the standard developed by the Organisation for Economic Co-operation and Development (OECD), in order to enable Canadian tax authorities to obtain information relevant to the enforcement and administration of Canadian taxation laws.The new legislation is part of Canada’s ongoing effort to update and modernize its network of income tax treaties, which help prevent double taxation and tax evasion. Canada has comprehensive tax treaties in place with 90 countries — one of the largest networks of bilateral tax treaties in the world, the department said.