Does she take advantage of a Canadian Tax Free Savings Account (TFSA), have mutual funds, RRSPs? Are these profitable investments for her after her US tax compliance with 3520 and 3520A’s, 8621, 8891 form preparations? Does someone handle and pay for this compliance for Ms Francis?
And, why does she use the term “Tax Avoidance”? Does the CRA take their lead in terminology from Ms Francis?
But now the big nations — the United States and the European Union with its tax havens — are finally preparing to crack down on tax leakage as they struggle with debt and entitlement burdens and slow growth.
They have few choices: High profile tax evasion in Greece, Cyprus and Southern Europe has rattled the EU, as has Russia’s no-tax enticement of Gerard Depardieu to its jurisdiction. Finally, steps are being taken to remove secrecy in financial centers such as Luxembourg, Ireland, Austria and even the Switzerland.
The United States is also realizing that its tough system is being eroded by international tax gamesmanship. This week, the CEO Tim Cook of America’s Darling, Apple, was grilled by Congress on its clever tax avoidance schemes around the world and pilloried alongside Wall Street’s greedy and parasitic sector. Britain attacked Google’s and Amazon’s tax games, too.
But shame won’t do the job. Only an international tax regime, and rewriting of tax treaties that facilitate cheating, will.
To that end, the Organization of Economic Co-operation and Development (OECD) is preparing a template for international tax collection to eliminate loopholes and rein in evaders that will be presented this fall to the G20.