Examining Canadian Offshore Tax Evasion

Abstract

This article reviews academic and government studies that assess the magnitude of Canadian offshore tax evasion, as well as what tax-haven data leaks such as the Panama Papers have told us. This evidence, along with Canada’s historically poor performance in auditing, investigating, and prosecuting offshore tax cheats, calls for an ongoing and measured legal and policy response to inhibit offshore tax evasion. The article evaluates recent Canadian reform efforts and recommends ways to improve the system for investigating and prosecuting offshore tax evaders.

Keywords: international tax, tax haven, data leaks, offshore tax evasion, cross-border tax information exchange

JEL Classification: F30, K14, K34, K42